BIR Ruling No. 643-2017

BURFAU OF INTERNAL REVENUE REPUBLIG OF IHE PHHLIPPINES DEPARIMENT OI FINANGE Quezon City

Certificate of Tax Exemption No: 643-2017

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

Pampanga, a project duly registered with the Board of Investments (BOI) under Registration 2014 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 Sec.2.57.5 (B)(2) of RR No. 2-98, as amended. creditable withholding tax on its income received directly in connection with its economic and low-cost housing project, Fiesta Communities Mabalacat Phase IV- Barangay Tabun, Mabalacat, Pampanga consisting of 66 units located at Barangay Tabun, "Mabalacat. No. This certifies that FIESTA COMMUNITIES, INC. is exempt from income tax and dated September 15, 2014, for a period of 3 years beginning from September

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

The Company is liable, however, to all otherrapplicable taxes not enumerated above. applicable BIR rules and regulations and the Terms and Conditions stated at the back hereof. 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 ofDEC 1's :

A

K-1 Commissioner of Internal Revenue CAESAR R. DULAY 011930

Fiesta Communities, Inc. Page 2 of 2 Date issued CTE No.

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1. The exemption from income and creditable withholding taxes covers only income directly units with selling price exceeding P2,500,000.00. Phase IV- Barangay Tabun Mabalacat, Pampanga consisting of 66 units, located at Barangay Tabun, Mabalacat, Pampanga. Such exemption shall not cover revenues from attributable to the revenues generated from the project, Fiesta Communities Mabalacat

2 The Company is obligated to construct and sell 66 housing units based on the following schedules/sales revenues:

Total Year 2 3 No.of Units Volume 66 33 20 13 Value(Php000

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 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 thirty 30 days from the deadline for filing of tax returns and payment of taxes. tax returns and pay its tax liabilities, on or before the deadline as provided under the 1997 Tax 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 Code,as amended, using the electronic system for filing and payment of taxes of the BIR. It

6. 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 taxes as source as required under Chapter XIII and Section 57 of the Tax Code of 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 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.

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 the purpose of 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 of 1997, as amended.