BIR Ruling No. 528-2020

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No. DO-LE-35--2020

CERTIFICATE OF TAX EXEMPTION

TO WHOM IT MAY CONCERN:

at Brgy. Puro, Legazpi City, a project duly registered with the Board of Investments (BOI) from income tax and creditable withholding tax on its income received directly in connection with its economic and low-cost housing project, Ecohomes Bayshores Condominium, consisting of June 2020 or actual start of commercial operation/selling, whichever is earlier, but in no case earlier that the date of registration of the project with the BOI, pursuant to Executive Order No. of Revenue Regulations No. 2-98, as amended, provided that the selling price of said residential CORPORATION with Taxpayer's Identification Number (TIN) under Registration No. units does not exceed P2,000,000.00' per residential unit. 226, otherwise known as the "Omnibus Investments Code of 1987" and Section 2.57.5(B)(2) This certifies that SUNWESTVILLE REALTY AND DEVELOPMENT -.residential units used solely for family home or dwelling purposes located dated June 10, 2020, for a period of 4 years beginning from , is exempt

that beginning January 1, 2021, the VAT exemption shall only apply to sale of house and lot and other residential dwellings2 with selling price of not more than Two Million Pesos 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. Provided, however (P2,000,000.00). Moreover, the sale by the Company of residential lots valued at P1,919,500.00 and

including those units used for commercial purposes such as leasing, retail stores, offices, etc. shall be subject to the applicable taxes under the 1997 Tax Code, as amended. with the BOI, (per HLURB License to Sell No. The sale, however, of residential units in excess of the 1,320 residential units registered , the excess is 50 residential units),

The Company is liable, however, for all other applicable taxes not discussed 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

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

Issued this day ofSEP1 5 202

K - 1/ 19-1936 Commissioner of Internal Revenue 1eeraMran CAESAR R.DULAY 036712 O

Sale of lot only, regardless of the price, shall be subject to VAT starting January 1, 2021 pursuant to RA No. 10963. Per Specific Terms and Conditions of the Certificate of Registration issued by the BOI

Page 2 of 2 SUNWESTVILLE REALTY AND DEVT.CORP/Ecohomes Bayshore CTENo.PO-L-0528-2020 Date ssued SEP 1 5 2020

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

The exemption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the project, Ecohomes Bayshores Condominium, consisting of 1,320 residential units used solely for family home or

dwelling purposes located at Brgy. Puro, Legazpi City, Albay. Such exemption shall not

cover revenues from units with selling price exceeding P2,000,000.00.

The company shall observe the following project timetable.

Activity Schedule

Land Acquisition Secure necessary license/permit/registration October 2018 -December 2019 December 2008

Site preparation and development Start of commercial operations Building/house construction from the government/training costs January 2019 -- December 2022 January 2019 -- December 2021 June 2020

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.

Y The Company's entitlement to ITH from 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 the Republic Act (RA) No. 107083. the Company is required to

file its tax returns and pay their 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 provided under E.O. 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

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 at source as required under Chapter Xiil and Section 57

of the Tax Code of 1997, as amended and implemented by Revenue Regulations No. 2-

98, as amended.

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 has been 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.

An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Administered by

Investment Promotion Agencies