BIR Ruling No. 663-2020

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City

Certificate of Tax Exemption No:

3Oi-LEH-0663-2020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

Taxpayer Identification Number (TIN) creditable withholding tax on its income received directly in connection with its economic and Balabag and Jibao-an, Pavia, Iloilo, consisting of 2,159 house and lot units used solely for family home or dwelling purposes, located at Brgys. Balabag and Jibao-an, Pavia. Iloilo, a low-cost housing project (horizontal), Deca Homes Pavia Resort Residences Phase 2 -- Brgy. dated October 25, 2017 for a period of three (3) years beginning from October 2017 or actual start of commercial operations/selling, 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 Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, as amended. project duly registered with the Board of Investments (BOI) under Registration No. This certifies that 8990 HOUSING DEVELOPMENT CORPORATION,with is exempt from income tax and

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 Revenue Code of 1997, as amended. Provided, however, that beginning January 01, 2021, the exemption from V AT shall only apply to sale of house and lot and other residential dwellings with selling price of not more than P2,000,000.00. Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

leasing, retail stores, offices, etc., shall be subject to the payment of appropriate taxes under the National Internai Revenue Code of 1997, as amended. registered with the BOf, if any, including those units used for commercial purposes such as However, the sale of house and lot units in excess of the 2,159 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

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 7 2020

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$K-1-LMAT Commissioner of Internal Revenue CAESAR R. DULAY 038658

Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963.

8990 HOUSING DEVELOPMENT CORPORATION (Deca Homes Pavia Resort Residences Phase 2) Date issued CTE No. 0663-2020

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1. The exemption from income and creditable withholding taxes covers only income directly Phase 2 Brgy.Balabag and Jibao-an Pavia, Ioilo, consisting of 2,159 house and lot units used attributable to the revenues generated from the project, Deca Homes Pavia Resort Residences Such exemption shall not cover revenues from units with selling price exceeding P2,000,000.00. for more than P1,700,000.00 per house and lot. solely for family home or dwelling purposes, located at Brgys. Balabag and Jibao-an, Pavia, Iloilo. Moreover, the 2,159 house and lot units covered by License to Sell No. shall not be sold

2.The Company is obligated to construct and sell 2,159 house and lot units based on the following schedules/sales revenues:

Year I (No. of Units) Volume 934 (PhP'000) 1,020,688 Value

Total 3 2 2,159 510 665 2,428,464 624,058 783,718

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

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.

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

6 The Company shall be constituted as a withholding agent for the government if it acts as employer be provided under E.O. 226, within the periods prescribed under RA No. 10708's Implementing returns and pay its tax liabilities, on or before the deadline as provided under the National Internal 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 Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1, 2016.

required under Chapter XIII and Section 57.of the National Internal Revenue Code of 1997, as 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.

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.

8. 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 Interhal Revenue Code of 1997, examination by revenue enforcemient officers of this Bureau for the purpose of ascertaining whether as amended.

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

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