BIR Ruling No. 595-2017

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City

Certificate 4- Exemption No:

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

housing units located at Salinas, Bacoor, Cavite, a project duly registered with the Board of is earlier, but in no case earlier than the date of registration of the project with the BOI, pursuant Section 2.57.5 (B) (2) of Revenue Regu!ations (RR) No. 2-98. as amended. Taxpayers Identification Number (TIN) creditable withholding tax on its income received directly in connection with its economic and low-cost housing project. Lessandra Bacoor 8 -- Salinas, Bacoor, Cavite. consisting of 132 Investments (BOl) under Registration No. years beginning from March 2017 or actual start of commercial operations/selling. whichever to Executive Order No. 226, otherwise known as the "Omnibus Investments Code of 1987" and This certifies that HOUSEHOLD DEVELOPMENT CORPORATION. with dated March 30. 2017. for a period of 3 is exempt from income tax and

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 Revenue Code of 1997, as Moreover. the sale by the Company of residential lot valued at P1.919,500.00 and

The Company is liable, however, for all other applicable taxes not discussed above. applicable BIR rules and regulations and the Terms and Conditions stated at the back hercof. The grant of tax exemption herein is subiect 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 DEC.1 4_2017

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T-K-I-I.MAT Commissioner of Internal Revenue CAESAR R. DULAY 011711

(Lessandra Bacoor 8) HOUSEHOLD DETELOPMEN: CORPC.ATION Date issued_12-14-2017 CTE NO. 595-2017

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. Lessandra Bacoor 8 -- Salinas, Bacoor. Cavite, consisting of 132 housing units located at Salinas, Bacoor. Cavite. Such exemption shall not cover revenues from housing units with selling price exceeding P3,000.000.00. Moreover, the 132 housing units covered by License to Sell No. more than P1,700,000.00 per house and lot. shall not be sold for

2. The Company is obligated to construct and sell 132 housing units based on the following schedules!sales revenues:

Total Year (No. of Units) Votume 132 33 9 (Php "000) Value

3 In the computation of thc project's ITHt. 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 entittement 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 Scction 4 of Republic Act (RA) No. 10708', the Company is required to file its tax)

of taxes of the BIR. It shall file with BOI a complete annual tax incentives report of its income- Implementing Rules and Regulations and Joint Memorandum Circular No. t-2016 dated returns and pay its tax liabilities, on or before the deadtine as provided under the National Internai Revenue Code of 1997, as amended, using the electronic system for filing and payment based tax incentives. VAT and duty exemptions, deductions, credits or exclusions from the tax basc, as may be provided under E.O. 226, within the periods prescribed under RA No. 10708's September 1, 2016.

h The Company shalt 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 withhoiding 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) No. 2-98. as amended.

The Company is required to file on or before the 15t day ot the fourth month following the Information Return under oath. stating its gross income and expenses incurred during the close of its accounting period of a Profit and Loss Statement and Balance Sheet with the Annual taxable year.

8. Finally, the Company's books of accounts and other pertinent records shall be subject to ascertaining whether it is complying with the conditions under which it has been granted tax exemption or tax incentives and its tax liabitity, if any. pursuant to Section 235 of the Nationa! periodic examination by revenue enforcement officers of this Bureau for the purpose of 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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