BIR Ruling No. 650-2017

BUREAU OF INTERNAL REVENUE REPUBLIC OF DEPARTMENT OF FINANCE Quezon City .-. PHILIPPINES

Certificate of Tax Exemption No: Q

CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN:

Grove at Camella Batangas City - Barangay Atangilan, Batangas City, Batangas, consisting of 60 housing units located at Barangay Alangilan, Batangas City. Batangas. a dated March 24, 20: 7, for a period of 3 years beginning from March 2017 or actual start of registration of the project with the BOI, pursuant to Executive Order No. 226, otherwise known its income received directly in connection with its economic and low-cost housing project, The project duly registered with the Board of Investments (BOI) under Registration No. commercial operations/selling, whichever is earlier, but in no case earlier than the date of as the "Omnibus Investments Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, as amended. Number (TIN) This certifies that COMMUNITIES BATANGAS, INC.. with Tax Identification : is exempt from income tax and creditable withholding tax on

below. or house and lot and other residential dwellings valued at P3, 199,200.00 and below, is amended. VAT-exempt under Section 109(1)(P) of the National Internal Revenuc Code of 1997, as Moreover, the sale by the Company of residential lot valued at P1,919.500.00 and

of appropriate taxes under the National Internal Revenue Code of 1997, as amended. However, the sale of units in excess of 60 housing units shall be subject to the payment

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

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

Issued this day of DEC1 9 2017

K-1 Commissioner of Internal Revenue CAESAR R. DULAY A8SomAy 011994

(The Grove at Camella Batangas City) COMMUNITIES BATANGAS. INC CTENo Date issued. 650-2017 12-19-2017-

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

The exenption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the project, The Grove at Camella Batangas City units with selling price exceeding Barangay Alangilan. Batangas Citv. Batangas. Such exemption shall not cover revenues from - Barangay Alangilan, Batangas City, Batangas, consisting of 60 housing units, located at

2. The Company is obligated to construct and sell 60 housing units based on the following schedules/sales revenues:

Year (No. of Units) Volume (Php 000) Value

Total 3 2 1 60 S 2

3. In the computation of the project's ITH, interest income from in-house financing shall not be considered as part of the revenues generated from the registered housing project.

D 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. S. Pursuant to Section 4 of Republic Act (RA) No. 10708', thc Company is required to file its tax returns and pay its tax tiabitities, on or before the deadline as provided under the National internai 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 coinplete annual tax incentives report of its income- based tax incentives. VAT and duty exemptions, deductions, credits or exclusions from the tax base, as may be provided under E.0. 226. within the periods prescribed under RA No. 10708's implementing Rules and Regulations and Joint Memorandum Circular No. I-2016 dated September I. 2016.

6 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 taxes as source as required under Chapter XII1 and Section 57 of the National Internal Revenue Code of 1997, as amended, and implemented by Revenue Regulations (RR) withhotding tax, or if it makes payments to individuals or corporations subject to the No. 2-98, as amended.

I The Company is required to file on or before the I5t 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 taxabie year.

8. Finally, the Company's books of accounts and other pertinent records shall be Subject to periodic examination by revenue enforcement officers of this Bureau for the purpose of ascertaining whether it is complying with the conditions under which it has been granted tax exemption or tax incentives and its tax liability, if any, pursuant to Section 235 of the National Internal Revenue Code of 1997, as amended.

An Act Fnhancing Transparency in the Management and Accounting of Tax Incentives Administered by Investment Promotion Agencies.

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