BIR Ruling No. 593-2017

REPUBLIC : "HI PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPAHTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No: 593-2017

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

incomc received directly in connection with its project, Beijing Tower consisting of 580 residential units located at E. Rodriguez Ave., Brgy. Kalusugan. Quezon City, a project duly Number December 18. 2009 for a period of 4 years beginning from July 2010 or actual start of known as the "Omnibus Investments Code of 1987" and Sec. 2.57.5 (B)(2) of Revenue Regulations No. 2-98, as amcnded. registered with the Board of Investments (BOI) under Registration No. 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 (E.O.) No. 226, otherwise This certifies that FEDERAL LAND, INC. (the Company), with Tax Identification is exempt from income tax and creditable withholding tax on its : dated

and below, is VAT-exempt under Section 109(1)(P) of the 1997 Tax Code, as amended. Moreover, any sale by the Company of residential dwellings valued at P3.199.200.00

well as of the 310 parking slots are not covered by the Certificate of Tax Exemption, hence. subject to applicabie taxes under the 1997 Tax Code, as amended. The sale of units (residential and commercial) in excess of the 580 residential units. as

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. The grant of tax exemption herein is subject to the compliance with the provisions of

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

Issucd this day of 0EC 1 4 2017

touam

K-1-RFR Commissioner of Internal Revenue CAESAR R. DULAY 011750

Page 2 of 2 Federal Land. Inc. CTE No. Date issued 593-017 .14-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1. The exemption from income and creditabie withholding taxes covers only income directly. not cover revenues from units with selling price exceeding attributable to the revenues generated from the project, Beijing Tower, consisting of 580 units, iocated at E. Rodriguez Ave.. Brgy. Kalusugan, Quezon City. Such exemption shal

2 The Company is obligated to construct and sell 580 iow-cost mass housing units based on the following schedules/sales revenues:

Year 3 2 A (No. of Units) Volume 168 1 6 163 93 Va|uc (PhP)

Total 580

3. In the computation of the project's IT'H, interest income from in-house financing shall nol be considered as part of the revenues generated from the registered housing project.

4 The Company's cntitlement 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.

Pursuant to Section 4 of Republic Act (R.A.) 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 BIR. It shall file with BOI a complete annual tax incentives report'of its income-based tax incentives. VAT and duty exempiions, deductions, credits or exclusions from the tax base as may be provided under E.O. No. 226, within the periods prescribed under R.A. 10708's Implementing Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1. 2016. Tax Code. as amended, using the electronic system for filing and payment of taxes of the

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 subiect 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 thc Tax Code of 1997. as amended and implemented by Revenue Regulations (R. R.) No. 2-98. as amended. -7. The Company is required to file on or before the 1 5th day of the fourth month foliowing the close of its accounting period of a Profit and Loss Statement and Balance Sheet with the during the taxable year. Annuai Information Return under oath. stating its gross income and cxpenses incurred

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 the purpose of ascertaining whether it is coinplying 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 :997. as amended.

Investment Promotion Agencies. An Act Enhancing T'ransparency in the Management and Accounting of Tax Incentives Administered by.