BIR Ruling No. 594-2017

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City.

Certificate Exemption No:

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

Altea -- Barangay San Nicolas III, City of Bacoor, Cavite consisting of i92 housing units located at Barangay San Nicolas III, City of Bacoor, Cavite. a project duly registered with the project with the BOi. pursuant to Executive Order No. 226, otherwise known as the received direcuy in connection with its economic and low-cost housing project. Camella the Board of Investinents (BOI) under Registration No. period of 3 years beginning from March 2017 or actual start of commercial "Omnibus Investments Code of 1987" and Sec.2.57.5 (B)(2) of RR No. 2-98, as amended. operations/selling, whichever is earlier, but in no case earlier than the date of registration of This ccrtifies that HOUSEHOLD DEVELOPMENT CORPORATION with TIN is exempt from income tax and creditable withhoiding tax on its income dated March 30, 2017, for a

betow. or house and lot and other residential dwellings 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

payment of appropriate taxes under the 1997 Tax Code, as amended. However. the sale of units in excess of 192 housing units shall be subject to the

The Company is liable, however. for all other applicable taxes not discussed above. applicable BIR rules and regulations and the Terms and Conditions stated at the back hereot. The grant of tax cxemption herein is subject to the compliance with the provisions of

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 This Certificate of Tax Exemption is being issued on the basis of the facts and day of DEC 1 4 2017

K-1 Commissioner of Internal Revenue CAESAR R. DULAY 011714

Page 2 of 2 Household Devetopment (orporation. (TE NO. Date issued 12-14-2017 ES4-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

The exemption from income and creditable withholding taxes covers only income directiy attributable to the revenues generated from the project. Camella Altea -- Barangay San Nicolas III, City of Bacoor, Cavite consisting of 192 housing units, located at Barangay San Nicolas HII, City of Bacoor, Cavite. Such exemption shall not cover revenues from units with selling price exceeding P3,000,000.00.

2. The Company is obligated to construct and scli 192 housing units based on the following

schedules/sales revenues:

Total Year 2 3 (No. of Units) Volume 102 1 2 13 3 Value (Php '000)

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 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.

5. Pursuant to Section 4 of Republic Act (RA) No. 10708', thc Company is required to filc 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 compiete 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 Rules and Regulations and Joint Memorandum Circular No. 1 -2016 dated September 1, 2016. provided under E.O. 226, within the periods prescribed under R.A. 10708's Implementing

O 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. or if it makes payments to individuals or corporations subject to the 1997, as amended and impleinented by Revenue Regulations (RRj No. 2-98, as amended. withhoiding taxes as source as required under Chapter XIII and Section 57 of the 'T'ax Code of

7. The Compary is required to fite on or before the 15* day of the fourth month fotlowing 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.

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 tiability. 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 Administercd by! Investment Promotion Agencies.