BIR Ruling No. 782-2019

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No:

0782-2019

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

withholding tax on its income received directly in connection with its economic and low-cost housing project, Esmeralda Residences Phase I - Barangay Apokon, Tagum City, Identification Number (TIN) consisting of 367 house and lot units used solely for family home or dwelling purposes, located This certifies that AZDEVELOPERS CORPORATION, with Taxpayers is exempt from income tax and creditable

n(4) years beginning from June 2019 or actual start of commercial operetions/selling, Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, as amended. at Barangay Apokon, Tagum City, a project duly registered with the Board of Investments (BOI) under Certificate of Registration No. whichever is earlier, but in no case earlier than the date of registration of the project with the BOI, pursuant to Executive Order No. 226, otherwise known as the "Omnibus Investments dated June 24, 2019, for a period of four

below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is exempt from value-added tax (VAT) pursuant to Section 109 (1) (P) of the National Internal Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

with selling price of not more than P2,000,000.00. Revenue Code of 1997, as amended. Provided, however, that beginning January 01, 2021, the exemption from VAT shall only apply to sale of house and lot and other residential dwellings

registered with the BOI, if any, including those units used for commercial purposes such as leasing, retail stores, offices, etc., shall be subject to the payment of appropriate taxes under the National Internal Revenue Code of 1997, as amended. However, the sale of house and lot units in excess of the 367 house and lot units

applicable BIR rules and regulations and the Terms and Conditions stated at the back hereof. The Company is liable, however, for all other applicable taxes not discussed above. The grant of tax exemption herein is subject to the compliance with the provisions of

that the facts are different, then this Certificate shall be considered null and void. documents as represented and submitted. However, if upon investigation, the BIR ascertains This Certificate of Tax Exemption is being issued on the basis of the facts and

Issued this day of DEC 11 2019

ua

K-1-LMAT Commissioner of Internal Revenue CAESAR R.DULAY 031290

Sale of lot only. regardless of the price. shall be subject to VAT starting January 01, 2021 pursuant to Republic Act (RA)

No. 10963.

(Esmeralda Residences Phase 1) AZDEVELOPERS CORPORATION CTENO.782-2019 Date issued EC 2l

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

The exemption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the project, Esmeralda Residences Phase I -

or dwelling purposes, located at Barangay Apokon, Tagum City. Such exemption shall not cover revenues from units with selling price exceeding P2,000,000.00. Moreover, the 367 house and lot Units covered by License to Sell No. house and lot. Barangay Apokon, Tagum City, consisting of 367 house and lot units used solely for family home shall not be sold for more than P1,700,000.00 per

2.In the computation of the project's ITH, the following shall apply.

a. Only income generated from the sale of housing units (Esmeralda Residences Phase I --

for family home or dwelling purposes and not for commercial purposes such as leasing. Barangay Apokon, Tagum City) with selling price not exceeding Php2.0M and used solely retail stores, offices, etc. shall be qualified.

b. Interest income from in-house financinfvsha:i not be considered as revenues generated from the registered activity.

3. The Company's entitlement to ITH for its BOI-registered housing project is subject to the

compliance with the provisions of the Specific Terms and Conditions of its BOI Registration.

Pursuant to Section 4 of Republic Act (RA) No. 107082, the Company is required to file its tax Revenue Code of 1997, as amended, using the electronic system for filing and payment of taxes of the BIR. It shall file with BOI a complete annual tax incentives report of its income-based tax incentives, VAT and duty exemptions, deductions, credits or exclusions from the tax base, as may returns and pay its tax liabilities, on or before the deadline as provided under the National Internal be provided under E.O. 226, within the periods prescribed under RA No. 10708's Implementing Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1, 2016.

D The Company shall be constituted as a withholding agent for the government if it acts as employer

and any of its employees received compensation income subject to compensation withholding tax. amended, and implemented by Revenue Regulations (RR) No. 2-98, as amended. or if it makes payments to individuals or corporations subject to the withholding taxes as source as required under Chapter XIlIl and Section 57 of the National Internal Revenue Code of 1997, as

6. The Company is required to file on or before the 15th day of the fourth month following the close

of its accounting period of a Profit and Loss Statement and Balance Sheet with the Annual Information Return under oath, stating its gross income and expenses incurred during the taxable year.

Finally, the Company's books of accounts and other pertinent records shall be subject to periodic

it is complying with the conditions under which it has been granted tax exemption or tax incentives examination by revenue enforcement officers of this Bureau for the purpose of ascertaining whether and its tax liability, if any, pursuant to Section 235 of the National Internal Revenue Code of 1997. as amended.

An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Administered by Investment

Promotion Agencies

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