BIR Ruling No. 697-2020

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENTOFFINANCE Quezon City

Certificate of Tax Exemption No::

BOI -LEH-69 7:- 1020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

used solely for family home or dwelling purposes,located at Brgy. Aguso, Tarlac City housing project, FIESTA COMMUNITIES -- AGUSO, consisting of 477 house and lot units IdentificationNumber Tarlac, a project duly registered with the Board of Investments (BOI) under Registration withholding tax on its income received directly in connection.with its economic and low-cost No. This certifies that FIESTA COMMUNITIES, INCORPORATED with Tax dated September 17, 2019, for a period of four (4) years beginning from ', is exempt from income tax and creditable

October 2019 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 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, as amended. Order No. 226, otherwise known as the "Omnibus Investments Code of 1987" and Section

Moreover, the sale by the Company of residential lot valued at P1,919,500.00. and

however, that beginning January 1, 2021, the VAT exemption'shall only apply'to sale of house below, or house and lot and other residential dwellings valued-at P3,199,200.00 and below, is. VAT-exempt pursuant to Section 109 (1) (P) of the 1997 Tax Code, as amended. .Provided,

and lot and other residential dwellingst with selling pricevof.not more than Two Million Pesos

(P2,000,000.00).

However, the sale of house and lot units in excess of the 477 house and lot units

registered with BOI, if any, including those units used for commercial purposes such as leasing. retail stores, offices, etc. shall be subject to the payment of appropriate taxes under the National

Internal Revenue Code of 1997, 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. 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 DEC 2 9,2020

perae

CAESAR R. DULAY

K-1 Commissioner of Internal Revenue

038873

I Sale of lot only, regardless of the price, shall be to Republic Act (RA) No. 10963.

Fiesta Communities, Incorporated Page 2 of 2

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

The exemption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the project, Fiesta Communities - Aguso, selling price exceeding P2,000,000.00. Moreover, the 477 house and lot units covered by License to Sell No. consisting of 477 house and lot units used solely for family home or dwelling purposes, located at Brgy. Aguso, Tarlac City, Tarlac. Such exemption shall not cover revenues from units with 7 shall not'be sold for more than P1,700,000.00 per house and fot.

2.In the computation of the project's ITH; the following shall apply:

a. Only income generated from the sale of house and lot units (Fiesta Comimunities - Aguso)

with selling price not exceeding P2.0M 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.

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.

" based tax incentives, VAT and duty exemptions, deductions, credits or exclusions from the tax Pursuant to Section 4 of Republic Act (RA) No. 107082, the Company is required to file its tax Implementing Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated of taxes of the BIR. It shall file with BOI a complete annual tax incentives report of its income- base, as may be provided under E.O. 226, within the periods prescribed under RA 10708's September 01, 2016. returns and pay its tax liabilities, on or before the deadline as provided under the National Internal Revenue Code of 1997, as amended, using the electronic system for filing and payment

5. The Company shall be constituted as a withholding agent for the government if it acts as employer and any of its employees receive 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 National Internal Revenue 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 15t day of the fourth month following the close of its accounting period 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 National Internal Revenue Code of 1997, as amended.

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