BIR Ruling No. 376-2022

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Certificate of Tax Exemption No: BOI-LEH- 3 7 6 - 2 0 2 2

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

with its economic and low-cost housing project, Sabella Phase 1, consisting of 320 house and tot units located at Brgy. Panungyanan, General Trias, Cavite, a proiect duly registered with 2018, for a period of four (4) years beginning from"May 01, 2018 until April 30, 2022 Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, as amended. from income tax and creditable withholding tax on its income received directly in connection the Board of Investments (BOI) under Certificate of Registration No. pursuant to Executive Order (EO) No. 226, otherwise known as the "Omnibus Investments This certifies that CITIHOMES BUILDER AND DEVELOPMENT, INC. is exempt dated April 26,

residential dwellings! with selling price of not more than P3,199,200.00.2 exempt from value-added tax (VAT) pursuant to Section 109 (l) (P) of the National Internal 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 Iot and other below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

registered with the BOI, if any, including those units used for commercial purposes such as the Tax Code of 1997, as amended. leasing, retail stores, offices, etc., shall be subject to the payment of appropriate taxes under However, the sale of house and lot units in excess of the 320 house and iot units

The Company is liable, however, for all other appficable 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

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. This Certificate of Tax Exemption (CTE) supersedes CTE No. 1406-2018 and is being Issued this day of AUG 2 5 2022

K-1 /22(r3 Commissioner:of Internal Revenue LILIA CATRIS GUILLERMO 000868

2 As adjusted using the 2010 Consumer Price Index values per RR No. 8-2021 dated June I i. 2021. ' Sale of tot only, regardless of the price. shall be subject to VAT starting January 0t. 2021 pursuant to RA No. 10963.

CITIHOMES BUILDER AND DEVELOPMENT, INC. CTE No.: BOI-LEH (Sabella Phuse 1) Date issued:

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1. The exemption from income tax and creditable withholding tax covers oniy income directly and lot units used solely for family home or dwielling purposes, located at Brgy. Panungyanan, attributable to the revenues generated from the project, Sabella Phase 1, consisting of 320 house General Trias, Cavite. Such exemption shall nat cover revenues from units with selling price exceeding P2.000,000.00.

2. The Company shall observe the following project time table:

Activity Schedule

Secure necessary license/permit/registration trom the government/training costs Site preparation and development Start of Commercial Operations Land acquisition Building/House Construction September 2018 -- Decetmber 2020 March 2016 -- February 2018 January 2018 - April 2018 March 2016 May 2018

3. In the computation of the project's ITH, interest income from in-house financing shatt not be considered as revenues generated from the registeried activity.

4. The Company's entitlement to ITH for its BQI-registered housing project is subject to the compliance with the provisions of the Specific Terims and Conditions of its BOl Registration. 5. Pursuant to Section 4 of Republic Act (RA) No.: 107083, the Company is required to file its tax 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 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 filirg 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 Joint Memorandum Circular No. l-2016 dated September 1, 2016.

6. 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. required under Chapter XIII and Section 57 of the Tax Code of 1 997, as amended, and implemented] or if it makes payments to individuals or corporations subject to the withholding taxes as source as by RR No. 2-98, as amended. 7. The Company is required to file on or before the I5" day of the fourth month following the ciose 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. 8. 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. 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

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

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