BIR Ruling No. 42-2020

REPUBLICOF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No: BCI-LEH-008-2020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

as the "Omnibus Investments Code of 1987" and Section 2.57.5 (B)(2) of Revenue Regulations No. 2-98, as amended. withholding tax on its income received directly in connection with its economic and low-cost housing project, Casa Isabel Phase 3, consisting of 328 house and lot units used solely for family home or dwelling purposes, located at Brgy._ San Isidro Norte, Sto. Tomas, Batangas, a dated September 30, 2019, for a period of 4 years beginning from January 2020 or actual start registration of the project with the BOI, pursuant to Executive Order No. 226, otherwise known Taxpayer Identification Number project duly registered with the Board of Investments(BOI) under Registration No. of commercial operations/selling, whichever is earlier, but in no case earlier than the date of This certifies that THE NEW APEC DEVELOPMENT CORPORATION, with , is exempt from income tax and creditable

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

not covered by this Certificate of Tax Exemption and shall be subject to applicable taxes under the 1997 Tax Code, as amended. house and lot units used for commercial purposes such as leasing, retail stores, offices, etc., are The sale of house and lot units in excess of the 328 house and lot units, including those

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

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

Issued this day of JAN 1 0 2020

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K-1-JAC Commissioner of Internal Revenue CAESAR R.DULAY G 031966

Sale of lot onlyregardless of the price,shall be subject to VAT starting January 01.2021 pursuant to RA No.10963

The New Apec Development Corporation Casa Isabel Phase 2 Page 2 of 2 Date issued AN 10 202 CTE No. BOI-LEH-008-2020

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1. The exemption from income and creditable withholding taxes covers only income directly 328 house and lot units, located at Brgy. San Isidro Norte, Sto. Tomas, Batangas. Such attributable to the revenues generated from the project, Casa Isabel Phase 3 consisting of exemption shall not cover revenues from units with selling price exceeding P2,000,000.00. Moreover, the 328 house and lot units per HLURB License to Sell No. for more than P1,700,000.00 per house & lot package. shall not be sold

2.The enterprise shall observe the following project timetable.

Start of Commercial Operations from the government/training costs Site preparation and development Building/House constructien Land acquisition Secure necessary license/permit/registration Activity June 2015 to December 2019 October 2014 to June 2018 April 2018 to January 2024 October 2016 to June 2017 January 2020 Period

3. In the computation of the project's ITH, the following-shall apply:

a. Only income generated from the sale of housing units (Casa Isabel Phase 3 -- Brgy

San Isidro Norte, Sto. Tomas, Batangas) with selling price not exceeding PhP2.0M such as leasing, retail stores, offices, etc. shall be qualified. and used solely for family home or dwelling purposes and not for commercial purposes

D Interest income from in-house financing shall not be considered as revenues generated

from the registered activity.

4.Pursuant to Section 4 of Republic Act (RA) No. 107082; the Company is required 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.

5 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 57 of the Tax Code of 1997, as amended and implemented by Revenue Regulations (RR) No. 2-98, as amended.

6.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.

7. 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

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