BIR Ruling No. 270-2022

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption Ng: BO|-LEH-Z

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

This certifies that COMMUNITIES CAGAYAN, INC. with Taxpayer Identification

consisting of 451 house and lot units used solely for family home or dwelling purposes, located Camella Prima Butuan Subdivision -- Brgy. Ampayon, Butuan City, Agusan del Norte, at Brgy. Ampayon, Butuan City, Agusan del Norte, a project duly registered with the Board its income received directly in connection with its economic and low-cost housing project, of Investments (BOI) under Certificate of Registration No. Number (TIN) is exempt from income tax and creditable withholding tax on dated December 23 2021, for a period of 4 years beginning from December 2021 or actual start of commercial operations/selling, whichever is earlier, but in no case earlier than the date of registration of the

"Omnibus Investments Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) project with the BOI, pursuant to Executive Order (EO) No. 226, otherwise known as the No. 2-98, as amended.

below, or house and lot and other residentiai dwellings valued at P3,199,200.00 and below, is VAT-exempt under Section 109(1)(P) of the National Internal Revenue Code (Tax Code) of 1997, as amended. Provided, however, that beginning January 01, 2021, the VAT exemption shall only apply to sale of house and lot"and other residential dwellingsi valued at Moreover, the sale by the Company of residential lot valued at Pi,919,500.00 and

P3,199.200.002.

registered with the BOI, if any, including those units used for commercial purposes such as ieasing, retail stores, offices, etc. shall be subject to the payment of appropriate taxes under the Tax Code of 1997, as amended. However, the sale of house-and lot units in excess of the 451 house and lot units

applicable BIR rules and regulations and the Terms and Coniditions 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 MAY 2 7 2022

K-1 - MDT Marissaaicabreros By: Deputy commIssioner Officer-in-Charge Lagal Group 0 9 0 5 Commissioner of Internal Revenue CAESAR R. DULAY

2 As adjusted using the 2010 Consumer Price Index values pursuant to RR No. 82021 dated June I1. 2021. I Sale of lot only, regard of the Ce, shall be subiect to VAT starting nuary 01, 2021-pursuant to RA No. 10963

page 2 of 2 Camella Prima Butuan Subdivision Dcte issued_jvi A CTE No. BOI- LEH -. S : 7 2222 :

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

l. The exemption from income and creditable withholding taxes covers only income directly solely for family home or dwelling purposes located ai Brgy. Ampayon, Butuan City, Agusan attributable to the revenues generated from the project, Camella Prima Butuan Subdivision- Brgy. Ampayon, Butuan City, Agusan del Norte, consisting of 451 house and lot units used del Norte shall not be sold for more than P Such exemption shall not cover revenues from units with selling price exceeding Moreover, the 451 housing units covered by Provisional License to Sell No. I per house and lot.

2. The enterprise shall observe the following project tir vetable:

Start of Commercial Operations Site Preparation and Development Building/House Construction Total Project Cost Milestone December 2019 -- December 2024 February 2020 - December 2024 Irvestment Cost and Schedule December 2021

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.

4. 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.

5 Pursuant to Section 4 of Republic Act (RA) No. 107083, the Company is required to file its tax returns and pay its tax liabitities, on or before the deadline as provided under the Tax 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 be provided under EO No.

Joint Memorandum Circular No. 1-2016 dated September 1. 2016. 226, within the periods prescribed under RA. No. 10708's Implementing Rules and Reguiations and

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 tax, or if it makes payments to individuals or corporations subject to the withholding taxes as source as required under Chapter XII1 and Section 57 of the Tax Code of 1997, as amended. and implemented by RR No. 2-98, as amended.

7.- The Company is required to file on or before the 15% day of the fourth month following the close of its accounting period of a Profit and Loss Statement and Balance Sheet with the Annuai

Information Retum under gath, stating its gross incorne and expenses incurred during the taxable year.

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

and its tax liability, if any, pursuant to Section 235 of the Tax Code of 1997, as amended. 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

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

Promotion Agencies.