BIR Ruling No. 266-2020

DD AH BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No:

TO ALL WHOM IT MAY CONCERN: CERTIFICATE OF TAX EXEMPTION BOI-LEH -0 2 6 5 - 2 0 20

to September 30, 2019, pursuant to Executive Order (EO) No.226, otherwise known as the Omnibus Investments Code of 1987 and Section 2.57.5 (B)(2) of Revenue Regulations (RR) City. a project duly registered with the Board of Investments (BOI) under Registration No. No. 2-98, as amended. vertical), Trees Residences Phase 2- Quirino Highway, Barangay Pasong Putik, Novaliches, Quezon City, consisting of 2,139 housing units used solely for family home or dwelling purposes, located at Quirino Highway, Barangay Pasong Putik, Novaliches, Quezon its income received directly in connection with its economic and low-cost housing project Number (TIN) This certifies that VANCOUVER LANDS, INC., with Taxpayers Identification dated May 27,2016, for a period of three (3 years beginning from October 1, 2016 is exempt from income tax and creditable withholding tax on

below, or house and lot and other residentiai dwellings valued at P3, 199,200.00 and below, is exempt from value-added tax (VAT) pursuant to Section 109 (1) (P) of the National Internal Revenue Code of 1997, as amended.Provided, however, that beginning January 01, 2021, the exemption from VAT shall only apply to sale of house and lot and other residential dwellings with selling price of not more than P2,000,000.00. Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

appropriate taxes under the National Internal Revenue Code of 1997, as amended. the BOI, if any, as well as the 946 parking slots, including those other units used for commercial purposes such as leasing, retail stores, offices, etc., shall be subject to the payment of However, the sale of housing units in excess of the 2,139 housing units registered with

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 hereof. The grant of tax exemption herein is subject to the compliance with the provisions of

that the facts are different, then this Certificate shall be considered null and void. documents as represented and submitted. However, if upon investigation, the BIR ascertains This Certificate of Tax Exemption is being issued on the basis of the facts and

Issued this day of MAY 2 6220

eLrany

iK-I-LMAT Commissioner of Internal Revenue CAESAR R. DULAY

033605 C

Sale of lot only, regardless of the price,shall be subject toVAT starting January O1,2021 pursuant to Republic Act (RA) No. 10963.

266-2020

(Trees Residences Phase 2) VANCOUVER LANDS, INC. CTE No.: Date issued: BOL-LEH- MAY 2 6 2020

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

I The exemption from income and creditable withholding taxes covers only income directly

attributable to the revenues generated from the project, Trees Residences Phase 2 -- Quirino

Highway, Barangay Pasong Putik, Novaliches, Quezon City, consisting of 2,139 housing units used solely for family home or dwelling purposes, located at Quirino Highway, Barangay Pasong Putik, Novaliches, Quezon City. Such exemption shall not cover revenues from units with selling

price exceeding P3,000,000.00.

2 The Company is obligated to construct and sell 2,139 housing units based on the following schedules/sales revenues:

Total Year 2 3 (No. of Units) Volume 2,139 1,062 821 256 (PhP'000) 1,369,459 3,723,704 1,895,165 459,080 Value

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.

-t

5 Pursuant to Section 4 of Republic Act (RA) No. 107082, the Company is required to file its tax

returns and pay its tax liabilities,on or before the deadline as provided under the National Internai] the BIR. It shall file with BOI'a complete annual tax incentives report of its income-based tax Revenue Code of 1997, as amended, using the electronic system for filing and payment of taxes of incentives; VAT and duty exemptions,'deductions, credits or exelusions from the tax base, as may be provided under E.O.226, within the periods prescribed under RA No. 10708's Implementing Rules and Regulations and Joint Memorandum Circular No. 1-2016 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, or if it makes payments to individuals.or corporations.subject to.the withholding taxes as source as required under Chapter XIII and Section57 of the National. Internal Revenue Code of 1997, as amended, and implemented by Revenue Regulations (RR) No. 2-98, as amended.

I. The Company is required to file on or before the 15 day of the fourth'month following 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.

8.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.

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

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