BIR Ruling No. 46-2020

REPUBLICOF THE PHILIPPINES

DEPARTMENT OF FINANCE

a BUREAU OF INTERNAL REVENUE

S Quezon City

D

Certificate of Tax Exemption No: 30I-IEH-012-2020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

2018-101 dated May 2, 2018, for a period of four (4) years beginning from July 2018 or actual of registration of the'project with the BOI, pursuant to Executive Order No. 226, otherwise known as the "Omnibus Investments Code of 1987" and Section 2.57.5 (B) (2) of Revenue or dwelling purposes, located at Sitio San Pedro, Brgy. Catalunan Grande, Talomo Dist., Davao City, a project duly registered with the Board of Investments (BOI) under Registration No. start of commercial operations/selling, whichever is earlier, but in no case earlier than the date Regulations (RR) No. 2-98, as amended. withholding tax on its income received directly in connection with its'economic and low-cost Identification Number (TIN) housing project, AdDu Homes Loyola Heights -- Sitio San Pedro, Brgy. Catalunan Grande, Talomo Dist., Davao City, consisting of 136 house and lot units used solely for family home This certifies that REALTY INVESTMENTS INCORPORATED,with Taxpayers ), is exempt from income tax and creditable

below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is 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 with selling price of not more than P2,000.000.00. 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

etc., shall be subject to the payment of appropriate taxes under the National Internal Revenue Code of 1997, as amended. lot), including those units used for commercial purposes such as leasing, retail stores, offices. registered with the BOI (per HLURB License to Sell No. 032727, the excess is 22 house and However, the sale of house and lot units in excess of the 136 house and lot units

The grant of tax exemption herein is subject to the compliance with the provisions of 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.

This Certificate of Tax Exemption is being issued on the basis of the facts and

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

Issued this day of JAN 1 7 2020

1aesanas

CAESAR R.DULAY

K-1-LMAT Commissioner of Internal Revenue 032117

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

No. 10963.

REALTY INVESTMENTS INCORPORATED CTE NO. 01 2020 (AdDu Homes Loyola Heights) Date issued JAN 1 f 2020

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1. The exemption from income and creditable withholding taxes covers only income directly Grande, Talomo Dist., Davao City. Such exemption shall not cover revenues from units with selling attributable to the revenues generated from the project, AdDu Homes Loyola Heights - Sitio San Pedro, Brgy. Catalunan Grande, Talomo Dist., Davao City, consisting of 136 house and lot units used solely for family home or dwelling purposes, located at Sitio San Pedro, Brgy. Catalunan price exceeding P2,000,000.00.

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

a. Only income generated from the sale of housing units (AdDu Homes Loyola Heights -

commercial purposes such as leasing, retail stores, offices, etc. shall be qualified. Sitio San Pedro, Brgy. Catalunan Grande, Talomo Dist., Davao City) with selling price not exceeding Php2.0M and used solely for family home or dwelling purposes and not for

b. Interest income from in-house financing shall 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.

4.Pursuant to Section 4 of Republic Act (RA) No. 107082, the Company is required to file its tax 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. 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

5. 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, or if it makes payments to individuals or corporations subject to the withholding taxes as source as amended, and implemented by Revenue Regulations (RR) No. 2-98, as amended. required under Chapter XIII 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.

7. 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 and its tax liability, if any, pursuant to Section 235 of the National Internal Revenue Code of 1997, examination by revenue enforcement officers of this Bureau for the purpose of ascertaining whether as amended.

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

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