BIR Ruling No. 320-2018

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No:

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

Investments Code of i987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, 300 Quirino Highway, Baesa, Quezon City, a project duly registered with the Board of three (3) years beginning from December 20151 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 (BOl) under Registration No. as amended Identification Number (TIN) withholding tax on its income received directly in connection with its project, Domestic Producer of Rebars-Modernization (RM2 Project - Bar Mill Modernization) iocated at This certifies that CAPITOLSTEELCORPORATION,withTaxpayers is exempt from income tax and creditable dated February 2, 2015, for a period of

applicabie BIR rules and regulations and the Terms and Conditions stated at the back hereof. The Company is liable, however, for all other applicabie 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 MAR 1F.2013-

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TK-I-LMAT Commissioner of Internal Revenue CAESAR R. DULAY 014232

: The start of commercial operations was amended from December 2015 to January 2016. However. availment of Income Tax Hotiday shall still be reckoned from December 2015. the original date.

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(RM2 Project - Bar Mill Modernization) CAPITOL STEEL CORPORATION CTE No. Date issued 3-6--2038 320-2018

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

The exemption from income and creditable withholding taxes covers only income directly be certified under oath by the Chief Executive Officer (CEO) or Chief Financial Officer (CFO). attributable to the revenues generated from the project, Domestic Producer of Rebars- Modernization (RM2 Project -- Bar Mill Modernization) located at 300 Quirino Highway, Baesa, Quezon City. For this purpose, the enterprise shali submit audited segregated income statements for this registered project. Net income from operation of the registered activity shall

The Company's production and sales schedule? are as follows:

Year Production Volume (in MT Selling Price (Php) Total Sales Value (Php)

4 2 3

5

3. The Company's entitlement to ITH for its BOI-registered 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. 107083, the Company is required to file its tax base, as may be provided under E.O. 226, within the periods prescribed under RA No. 10708's Implementing Rules and Regulations and Joint Memorandum Circular No. l-2016 dated 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 September 1, 2016. returns and pay its tax liabitities, 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

5. , The Company shall be constituted as a withholding agent for the government if it acts as withholding tax, or if it makes payments to individuals or corporations subject to the No. 2-98, as amended. employer and any of its employees received compensation income subject to compensation Internal Revenue Code of 1 997, as amended, and implemented by Revenue Regulations (RR) withholding taxes as source as 'required under Chapter XIII and Section 57 of the Nationa!

6. The Company is required to file on or before the 15t" 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.

Finally, the Company's books of accounts and other pertinent records shali be subject to exemption or tax incentives and its tax liabitity, if any, pursuant to Section 235 of the National Internal Revenue Code of i 997, as amended. periodic 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

An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Administered by Investment : Registered capacity was amended from 26-08 dated September 28. 2016 Promotion Agencies. per year (full capacity) as per Board Resolution No.

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