BIR Ruling No. 478-2021

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OFINTEM^ALREVENUE Quezon City Certificate of Tax Exemption No: - & 7 a - ? il 7 t CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN: This certifies that COMMUNITIES DAVAO, INC. with Taxpayer Identification Number..(/TxTIxNi\)I jg exempt from income tax and creditable withholding tax on its income received directly in connection with its economic and low-cost housing project, Lumina Fanabo-Brgy.Salvacion,Panabo City,consisting of8^house and lot units used solely for family home or dwelling purposes, located at Brgy. Salvacion, Panabo City, a project duly registered with the Board ofInvestments(BOI)under Certificate ofRegistration No. dated December 19,2019, for a period of 4 years beginning from December 2019 or actual start ofcommercial operations/selling, whichever is earlier, but in no case earlier than the date ofregistration ofthe project with the BOI,pursuantto Executive Order(EO)No. 226,otherwise known as the "Omnibus Investments Code of 1987" and Section 2.57.5(B)(2) ofRevenue Regulations(RR)No.2-98,as amended. Moreover, the sale by the Company of residential lot valued at PI,919,500.00 and below, or house and lot and other residential dwellings valued at P3,19L9,,200.00 and below, is VAT-exempt under Section 109(1)(P) ofthe National Internal Revenue Code(Tax Code)of 1997, as amended. Provided, however, that beginning January 01, 2021, the VAT exemption shall only apply to sale ofhouse and lot and other residential dwellings' with selling price of not more than P3,199,200.00^. However, the sale of house and lot units in excess of the ^3 house and lot units registered with the BOI,ifany, including those units used for comm^ial purposes such as leasing, retail stores,offices,etc.shall be subjectto the paymentofappropriate taxes under the Tax Code of 1997, as amended. The grant oftax exemption herein is subject to the compliance with the provisions of applicable BIR rules and regulations and the Terms and Conditions sta ed at the back hereof, The Company is liable, however,for all other applicable taxes not discussed above. This Certificate of Tax E.xemption 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_ K-l-GPS CAESAR R.DULAY Commission^r ofInternal Revenue 047972 Sale oflot only,regardless ofthe price,shall be subjectto VAT starting January 01.2021 pursuantto RA No. 10963. - As adjusted using the 2010 Consumer Price Index values pursuant to RR No.8-2021 dated June 11,2021.