BIR Ruling No. 663-2017

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No: 63-2017

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 Identification Number withholding tax on its income received directly in connection with its project. Fiesta Communities-Angeles, consisting of 1,136 units located at Brgy. Mining. Angeles City. a project duly registered with the Board of Investments (BOI) under Registration No. dated May 2, 2016, for a period of 4 years beginning from May 2016 or actual start of commercial operations/sclling. whichever is earlier, but in no case earlier than the date of registration of the project with the BOI. pursuant io Executive Order No. 226. otherwise known Regulations (RR) No. 2-98, as amended. This certifies that FIESTA COMMUNITIES INCORPORATED with Tax is exempt from income tax and creditable

below, or house and lot and other residential dwcllings valued at P3.199,200.00 and below. is VAT-exempt under Section 109(1)(P) of the 1997 Tax Code, as amended. Moreover, the sale by the Company of residential lot valued at P1.919.500.00 and

applicable BIR rules and regulations and the Terms and Conditions stated at the back hereof The Company is liable. however, to all other applicable taxes not enumerated above. The grant of tax exemption herein is subicct to the compliance with the provisions of

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 0 201?

AS

K-1 Commissioner of Internal Revenue CAESAR R. DULAY 011984

FIESTA COMMUNITIES INCORPORATED Date issucd 12-20-2017 CtI No. 563-2017

Page 2 of 2

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

1. The exemption from income and creditabte withholding taxes covers only income directly.

attributable to the revenues generated from the project, Fiesta Communities-Angetes

consisting of 1.136 units. located at Brgy. Mining. Angeles City. Such exemption shall not

cover revenucs from units with selling price exceeding P3.000.000.00. Moreover. the maximum

selling price for the 1,136 units shati not exceed P1.250,000.00 per house and lot based on

HL.URB i.icense to Seil No

The Company is obligated to construct and seti t,136 low -cost mass housing units based on the 2 following schedules'sales revenucs:

Year (No. of Units} Volume Value(PhP`000)

227 2 34 274 Total 1.136

3. In the computation of the project's iTH. interest income from in-house financing shall not be

considered as part of the revenues generated from the registered housing project.

4. The Company's entitlement to I'TH for its BOI-registered housing project is subject to the

compliance with the provisions of the Specific Terms and Conditions of its BOI Registration.

Pursuant to Section 4 of Republic Act (RA) No. 10708. the Company is required to file its tax

returns and pay its tax liabilities. on or hefore the deadline as provided under the 1997 Tax

Code. as amended, using the eiectronic 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 thiny (30) days from the deadline for filing of tax returms and

payment of taxes.

6. The Company shait 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 Xlil and Section 57 of the Tax Codc of

1997. as amended and impiemented by Revenue Reguktions (RR) No. 2-98, as amended.

The Company is required to file on or before the 15t 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. Finaily. the Company's books of accounts and other pertinent records shall be subject to

Periodid 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 T'ransparency in the Management and Accounting of T'ax Incentives Administered by Investment Promotion Agencies.