BIR Ruling No. 613-2017

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No: 1 20.

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

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. J, consisting of 194 units located at Brgy. Balabag-Ungka II, Pavia, Iloilo City, a project duly registered with the Board of Investments (BOI) under Registration No. operations/selling, whichever is earlier, but in no case earlier than the date of registration of the Identification Number 10, 2015. for a period of 3 years beginning from June 2015 or actual start of commercial withholding tax on its income received directly in connection with its project, Parc Regency This certifies that PROPERTY COMPANY OF FRIENDS, INC., with Tax is exempt from income tax and creditable dated June

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

applicable BIR rules and regulations and the Terms and Conditions stated at the back hereof. The Company is liabie, however, to all other applicable taxes not enumerated above. The grant of tax exemption herein is subject to the compliance with the provisions of

that the facts are different, then this Certificate shall be considered null and void. documents as represented and submitted. However, if upon investigation, the BIR ascertains This Certificate of Tax Exemption is being issued on the basis of the facts and

Issued this day of DEC 1 4 2017

1eaM

K-1 Commissioner of Internal Revenue CAESAR R. DULAY 011744

Property Company of Friends, Inc. Page 2 of 2 Date issued CTE No. 17-14-2017 613-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

The exemption from income and creditable withholding taxes covers only income directly from units with selling price exceeding P3,000,000.00. attributable to the revenues generated from the project, Parc Rerency J consisting of 194 units. located at Brgy. Balabag-Ungka II, Pavia, Iloilo City. Such exemption shall not cover revenues

2. The Company is obligated to construct and sell 194 low-cost mass housing units based on the following schedules/sales revenues:

Total Year 1 2 3 Volume (No. of Units) 1 9 59 14 11 Sales Value (PhP)

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 tax returns and pay its tax liabilities, on or before the deadline as provided under the 1997 Tax Code. as amended, using the electronic system for filing and payment of taxes of the BIR. It provided under E.O. 226, within thirty (30) days from the deadline for filing of tax returns and payment of taxes. shall file with BOl 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

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 XIII and Section 57 of the Tax Code of 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 15th day of the fourth month foliowing 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 of 1997. as amended exemption or tax incentives and its tax liability, if any, pursuant to Section 235 of the Tax Code 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

Investment Promotion Agencies 1 An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Administered by.