BIR Ruling No. 613-2020

REPUBLICOFTHE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OFQINTARNAL REVENUE

Certificate of Tax Exemption No: S#-0613-202

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN

This certifies that VERDANTPOINT DEVELOPMENT CORPORATION with

Taxpayers Identification Number (TIN is exempt from income tax and

creditable withholding tax (CWT) pursuant to Section 20(d)(1) of Republic Act (RA) No.7279 as amended by RA No.10884 (Balanced Housing Development Program Amendments) dated July 17, 2016, on its income received directly in connection with sale of socialized house and lot units for residential and dwelling purposes to qualified beneficiaries in Eastwood Residences Phase 1-B, consisting of 761 house and lot units located at Brgy. San Isidro, Rodriguez, Rizal, a project duly registered with the Housing and Land Use Regulatory Board (HLURB) under Certificate of Registration No.and License to Sell No. of said house and lot units does not exceed P530,000.002per house and lot packages. provided that the selling price

or house and lot and other residential'dwellings valued at P3,199,200.00 and below, is exempt Moreover, the sale by the Company of residential lot valued at P1;919,500.00 and below

from value-added tax (VAT) pursuant to Section 109(1(P) of the National Internal Revenue

price of not more than P2,000,000.00 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 dwellings3 with selling

It is observed,however,that documentary stamp tax(DST)is not one of the taxes covered by the tax exemption clause in Section 20 of RA No.7279. Thus, the documents conveying the value determined in accordance with Section 6 (E) of the same Code, whichever is higher. be subject to the payment'of appropriate taxes. amended, based on the consideration contracted to be paid for such realties or on their fair market properties shallbe subject to DST imposed under Section 196 of the Tax Code of 1997, as Likewise, lots/units classified as Economic Housing, not being covered by RA No.7279, shall

The Company is liable, however, for all other applicable taxes not enumerated 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

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 is being issued on the basis of the facts and documents

Issued this day of OCT 2 7 2020

C0M

K-1-MDT Commissioner of Internal Revenue CAESAR R.DULAY 03744

2 The maximum selling price is pegged at P530,000.00 per house & lot based on HLURB License to Sell No. Sale of lot only, regardlss of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963. I Per License to Sell No. house and lot units are authorized for sale.

Page 2 of 2 VERDANTPOINT DEVELOPMENT CORPORATION Date issued_OCT 2 7 2020 CTENo.PSH-613-2020

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

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

attributable to the revenues generated from the project, Eastwood Residences Phase 1-B consisting of 761 house and lot units, located at Brgy. San Isidro, Rodriguez, Rizal. Such exemption shall. cover revenues from 761 house and lot units with selling price not exceeding P530,000.00 per house and lot packages.

The developer shall submit the sworn statement of the buyer that he is eligible as a socialized

housing beneficiary provided under Section 5 (A) of Revenue Regulation (RR) No. 11-97 to the Bureau of Internal Revenue (BIR) during the processing of the Certificate Authorizing Registration (CAR) for the transfer of the socialized housing unit.

3 It is understood that the CAR shall only be issued after it is established upon proper verification

by the Revenue District Officer (RDO).concerned that, considering the rules on valuation of real

property, the actual selling price per sale transaction of the house and lot packages in this case

does not really exceed P530,000.00.