BIR Ruling No. 596-2017

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL RFVFNUF DEPARTMENT OF FINANGE Quezon City

Certificate of Tax Exemption No: 596-2017

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

This certifies that LUMINA HOMES, INC. with TIN is exempt from income tax and creditable withholding tax on its income received directly in conncction with its economic and low-cost housing project, Lumina Plaridel -- Brgy. Culianin, Piaridel, Bulacan consisting of 361 housing units located at Brgy. Culianin. Plaridel. Bulacan. a project duly registered with the Board of Investments (BOI) under Registration No. dated January 27, 2015, for a period of 4 years beginning from January 2015 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. othcrwise known as the "Omnibus Investments Code of 1987" and Sec.2.57.5 (B)(2) of RR No. 2-98, as amended.

Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is VAT-exempt under Section 109(1)(P) of the 1997 Tax Code, as amended.

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 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.

Issued this day of DFC_1.42017

K-1 Commissioner of Internai Revenue CAESAR R. DULAY 011719

Page 2 of 2 Lumina Homes. Inc. CTE NO. Date issued S96-2017 1-14-201

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1. The exemption from income and creditable withholding taxes covers oniy incomc directly exceeding P3,000,000.00. Moreover, the 361 housing units covered by License to Sell No. attributable to the revenues generated from the project, Lumina Plaridel Culianin, Plaridel, Bulacan consisting of 361 housing units, located at Brgy. Culianin. Plaridel, Bulacan. Such exemption shall not cover revenues from units with selling price & lot. shall not be sold for more than P500,000.00 for lot only and P1.250.000.00 per housc Brgy

2 The Company is obligated to construct and sell 361 housing units based on the following Schedules/sales revenues:

Year 3 (No. of Units) Volume 108 93 17 83 Va{ue(Php 000)

Y Total 361

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.

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. 10708', the Company is required to file its provided under E.O.'226, within the periods prescribed under R.A. 10708's Impieinenting tax returns and pay its tax liabilities, on or before the deadline as provided under the 1997 Tax shall fite with BOI a complete annual tax incentives report of its income-based tax incentivcs. Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1. 2016. Code, as amended. using the electronic system for filing and payment of taxes of the BIR. It VAT and duty exemptions, deductions, credits or exclusions from the tax base, as may be

6. The Company shall be constituted as a withholding agent for the government if it acts as withholding taxes as source as required under Chapter XIII and Section 57 of the Tax Code of 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 1997, as amended and implemented by Revenue Regulations (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 Annual Information Return under oath, stating its gross income and expenses incurred during close of its accounting period of a Profit and Loss Statement and Balance Sheet with the the taxable 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 thc purpose of Code of I 997, as amended. 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 Tax

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