BIR Ruling No. 628-2017

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No:

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

This certifies that PROPERTY COMPANY OF FRIENDS, INC., with Tax

Phase 11, consisting of 483' units located at Brgy. Navarro, General Trias, Cavite. a project June 27, 2013. for a period of 3 years beginning from June 2013 or actual start of commercial withholding tax on its income received directly in connection with its project, Kensington 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 thc project with the BOI. pursuant to Executive Order No. 226, otherwise known as the "Omnibus Identification Number is exempt from income tax and creditable dated

Investments Code of i987".

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 liable, however. to all other applicable taxes not enumerated above. The grant of tax exemption herein is subject to the compliance with the provisions of

This Certificate of Tax Exemption is being issued on the basis of thc 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 OEC 1 9 2017

A CAESAR R. DULAY Commissioner of Internal Revenue

K-1 011967

: While the BOI Registration of the project covers 484 housing units, the HLURB License to Sell issued therefor tax, shall cover only the 483 housing units. covers only 483 lots/units. Hence, the exemption from income tax, and consequently from creditable withhoiding

Page 2 of 2 Property Company of Friends, Inc. Date issued12-19-2017 CTE No. S28-X017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

The exemption from income and creditable withholding taxes covers ouly income directly attributabie to the revenues generated from the project, Kensington Phase 11 consist ing of 483 units, located at Brgy. Navarro, General T'rias, Cavite. Such exemption shall not cover revenues from units with selling price exceeding P1,250,000.002.

2* The Company is obligated to construct and sell 484 low-cost mass housing units based on the fotlowing schedules/sales revenues:

Total Year 2 ? (No. of Units) Volume 145 484 1 4 4 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.

4. The Company's entitiement to ITH for its BOI-registered housing project is subject to the compliance with the provisions of the Specific Terms and Conditions of its ROI Registration.

5. Pursuant to Section 4 of Republic Act (RA) No. 107083. the Company is rcquired to file its tax provided under E.O. 226, within thirty (30) days from the deadline for filing of tax returns and 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 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 be payment of taxes.

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 XIll 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 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 L.oss 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 te periodic examination by revenue enforcement officers of this Bureau for thc purpose of of 1997. 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 Code

2 The maximum selling price shall not exceed P1,250.000.00 per HLURB License to Sell No Investment Promotion Agencies. 3 An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Administered by