BIR Ruling No. 41-2020

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No:

B0I-LEH-007-2020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN

withholding-tax on its income received directly in connection with its economic and low-cost housing project, Casa Isabel Phase 2, consisting of 269 house and lot units used solely for Taxpayer Identification Number 005-230-718-000, is exempt from income tax and creditable family home or dwelling purposes, located at Brgy. San Isidro Norte, Sto. Torn2s, Baiangas, a project duly registered with the Board of Investments (BOI) under Registration No.201-186 dated September 30, 2019, for a period of 4 years beginning from January 2020 or actual start as the "Omnibus Investments Code of 1987" and Section 2.57.5 (B)(2) of Revenue Regulations of commercial operations/selling, whichever is earlier, but in no case earlier than the date of No. 2-98, as amended. registration of the project with the BOI, pursuant to Executive Order No. 226, otherwise known This certifies that THE NEW APEC DEVELOPMENT CORPORATION,with

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 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 VAT-exempt under Section 109(1)(P) of the 1997 Tax Code, as amended. Provided, however.

(P2,000,000.00).

The sale of house and lot units in excess of the 269 house and lot units, including those house and lot units used for commercial purposes such as leasing, retail stores, offices, etc., are

the 1997 Tax Code, as amended. not covered by this Certificate of Tax Exemption and shall be subject to applicable taxes under

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. The Company is liable, however, for all other applicable taxes not discussed 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 JAN 1 0 20^S

iaoe

CAESAR R.DULAY

K-1-JAC Commissioner qf Internal Revenue 031967

Sale of lot only, regardless of the price, shall be subject to VAT starting January 01,2021 pursuant to RANo.10963

Page 2 of 2 The New Apec Development Corporation Casa Isabel Phase 2 Date issued JAN 1 0 2020 CTE No. BCI-LEH-007-2020

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1. The exemption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the project, Casa Isabel Phase 2 consisting of Moreover, the 269 house and lot units per HLURB License to Sell No. 034442 shall not be sold 269 house and lot units, located at Brgy. San Isidro Norte, Sto. Tomas, Batangas. Such exemption shall not cover revenues from units with selling price exceeding P2,000,000.00 for more than P1,700,000.00 per house & lot package.

2.The enterprise shall observe the following project timetable.

Land acquisition Activity October 2014 to June 2018 Period

from the government/training costs Secure necessary license/permit/registration Site preparation and development June.2015 to December 2019 October 2016 to June 2017

Start of Commercial Operations Building/House construction Apiil 2018 to January 2024 January 2020

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 2 -- Brgy.

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

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

from the registered activity.

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 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 thirty (30) days from the deadline for filing of tax returns and payment of taxes.

5. The Company shall be constituted as a withholding agent for the government if it acts as withholding taxes as source as required under Chapter XIII and Section 57 of the Tax Code of 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

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