BIR Ruling No. 631-2017

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No: 631-2:017

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

Identification Number withholding tax on its income received directly in connection with its project, Somerset Phase This certifies that PROPERTY COMPANY OF FRIENDS, INC., with Tax is exempt from income tax and creditable

27, 2013, for a period of 3 years beginning from June 2013 or actual start of commercial project with the BOI, pursuant to Executive Order No. 226. otherwise known as the "Omnibus 9. consisting of 301 units located at Brgy. Navarro, General Trias, Cavite, 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 dated June

Investments Code of 1987".

Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and below, or house and lot and other residential dwellings valued at P3.199,200.00 and below, is VAT-exempt under Section 109(!)(P) of the 1997 Tax Code, as amended.

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

This Certificate of Tax Exemption is being issued on the basis of the 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 OFC 1 9. 2017.

RAo

Commissioner of Internal Revenue CAESAR R. DULAY

K-1 011968

Property Company of Friends, Inc. Page 2 of 2 Date issued CTE No $71-2017 -19-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

I. The exemption from income and creditable withholding taxes covers only income directly

attributable to the revenues generated from the project, Somerset Phase 9 consisting of 301 units, located at Brgy. Navarro, General Trias, Cavite. Such exemption shall not cover revenues from units with selling price exceeding P I,250.000.00.

2 The Company is obligated to construct and sell 301 low-cost mass housing units based on the

foliowing schedules/sales revenues:

Total Year 2 3 (No. of Units) Volume 31 121 90 9 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. 107082, 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 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

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 tax, or if it makes payments to individuals or corporations subject to the withholding taxes as source as required under Chapter XIII and Section S7 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 following the

close of its accounting period of a Profit and Loss Statement and Balance Sheet with the Annuat 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

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 l997, as amended.

2 An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Administered by : The maximum selling price is P1.250,000.00 per HLURB License to Sell No. Investment Promotion Agencies.