BIR Ruling No. 369-2022

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REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Certificate of Tax Exemption No: BO}-LEH- 3 5 9 - 2 0 2 2

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

withholding tax (CWT)`on its income received directly in connection with its economic and house and lot units used solely for family home or dwelling purposes located at Brgy. San Felipe, Tantangan, South Cotobato, a project dulv registered with the Board of Investments four (4) years beginning from March 2022 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 (EO) No. 226, otherwise known as the "Omnibus Investments Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, Identification Number (TIN) low-cost housing project, VALEENVISTA RESIDENCES PHASE II-B consisting of 498 (BOI) under Certificate of Registration No. as amended. This certifies that VALEENLAND REALTY CORPORATION, with Taxpayer is exempt from income tax and creditable :ated March 18, 2022, for a period of

residential dwellings1 with selling price of not more than P3,199.200.002. Revenue Code (Tax Code) of 1997, as amended. Provided, however, that beginning January 01, 2021, the exemption from VAT shall only apply to sale of house and lot and other below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is exermpt from value-added tax (VAT) pursuant to Section 109 (1) (P) of the National Internal Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

leasing, retail stores, offices, etc., shall be subject to the payment of appropriate taxes under the Tax Code of 1997, as amended. registered with the BOI, if any, including those units used for commercial purposes such as However, the sale of house and lot units in excess of the 498 house and lot units

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

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 AUG_2 22022

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K1-FR-22-08 77 3 K- Commissioner of Internal Revenue LILIA CATRIS GUILLERMO 000 80 4

: Sale of lot only, regardless of the price, shall be subject to VAT starting Janiary 01. 2021 pursuant to RA No. 10963. 2 As adjusted using the 2010 Consumer Price Index values per RR No. 8-2021 dated June 11, 202 1

(Valeenvista Residences Phase I-B) VALEENLAND REALTY CORPORATION CTENo.Bo\-VEW- 3 6 9- 2 0Z 3 Date issued AUG_222022

OF THE CERTIFICATE OF TAX EXEMPTION : TERMS AND CONDITIONS

l. The exemption from income and creditable withholding taxes covers oniy income directly attributable to the revenues generated from the project, Valeenvista Residences Phase II-B consisting of 498 house and lot units located at Brgy. San Felipe, Tantangan, South Cotobato. Such Moreover, the 498 house and lot units covered by Provisional License to Sell No. sold for more than P1,700,000.00 per house and lot. exemption shall not cover revenues from units with selling price exceeding P2,000,000.00. shall not be

2. In the computation of the project's iTH, the following shall apply :

Only income generated from the sale of housing units (Valeenvista Residences Phase purposes such as leasing, retail stores, offices, ete: shall be qualified. II-B) -- Brgy. San Felipe, Tantangan, South Cotobato) with selling price not exceeding Php2.oM and used solely for family home or dwelling purposes and not for commercial

b. Interest income from in-house financing shall not be considered as revenues generated from the registered activity. 3. The Company's entitlement to ITH fcr its BOI-registered housing project is subject to the compliance with the provisions of the Specific Terms and Conditions of its BOI Registration.

4 Pursuant to Section 4 of Republic Act (RA) No. 107083, the Company is required to file its tax

returns and pay its tax liabilities, on or before the deadline as provided under the Tax Code of 1997 as amended, using the electronic system for fiting 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 EO No. 226, within the periods prescribed under RA No. 10708's Implementing Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1, 2016.

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 RR No. 2-98, as amended.

6 The Company is required to file on or before the 15" 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 taxabie

year.

7. Finally, the Company's books of accounts and other pertinent records shall be subject to periodic and its tax liability, if any, pursuant to Section 235 of the Tax Code of 1997, as amended. it is complying with the conditions under which it has been granted tax exemption or tax incentives examination by revenue enforcement officers of this Bureau for the purpose of ascertaining whether

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

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