BIR Ruling No. 322-2021

REPUBLICOFTHE PHHHLIPPINES

BUREAU OF INTERNAL REVENUE DEIARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No: 11-1# 322-2021

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

consisting of 873 house and lot units used solely for family home or dwelling purposes, located at Brgy. Pasong Kawayan, General Trias, Cavite, a project duiv reoistered with the Board operations/selling, whichever is earlier, but in no case earlier than the date of registration of the project with the"BOI, pursuant to Executive Order (EO) No. 226, otherwise known as the housing project, REDFERN PHASE 4 - Brgy. Pasong Kawayan, General Trias, Cavite No. 2-98, as amended. Identification Number (TIN) withholding tax on its income received directly in connection with its economic and iow-cost of Investments (BOI) under Certificate of Registration No. 2020, for a period of 3 years beginning from January 2021 or actual start of commercial "Omnibus Investments Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) This certifies that PROPERTY COMPANY OF FRIENDS, INC. with Taxpayer is exempt from income tax and creditable dated December 29.

below, 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 National Internal Revenue Code (Tax Code) of shall only apply to sale of house and lot"and other residentiai dwellings2 valued at 1997, as amended. Provided, however, that beginning January 01, 2021, the VAT exemption P3,199,200.00 Moreover, the sale by the Company of residentiai lot valued at Pl,919,500.00 and

Tax Code of 1997, as amended. registered with the BOI, if any, including those units used for commercial purposes such as leasing, retail stores, offices, etc. shall be subject to the payment of appropriate taxes under the However, the sale of house and lot units in excess of the 873 house and lot units

applicabie BiR rules and regulations and the Terms and Conditions stated at the back hereof. The Company is tiable, however, for all other applicabie taxes not discussed above. The grant of tax exemption herein is subiect 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 Issued this .. This Certificate of Tax Exemption is being issued on the basis of the facts and day of HG:

a0M

Commissioner of Internal Revenue CAESAR R. DULAY

K 1 MDT

2 Sale ot lot onty, tegardless of the pnce. shail be subject to VAI startng Janaty 01. 202+ pursuant to RA No{0963 As adjusted using the 2010 Consumer Price Index valnes pursuant to RR N0. 8-2021 deted June +1. 2021.

page 2 of 2 Redfern Phase 4 Date issued CTE N

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

I. The exemption from income and creditable withholding taxes covers only income directty

attributahte to the revenues generated from the project. REDFERN PHASE 1 -- Brgy. Pasong Kawayan, General Trias, Cavite, consisting of 373 house and lot units used solely for Tamily home or dweiling purposes located at Brgy. Pasong Kawayan, General Trias, Cavite. Such exemption shail not cover revenues from units with selling price exceeding P2,000,000.00. Moreover, the 873 house and lot units shatl not be sold for more than P1,700,000.00 per house and lot per I icense to Sell No.

2. i'he enterprise shail observe the following project timetabie:

Iand Acquisition license/permit/registration from the Secure necessar Activity lune 2018 - February 2020 June 2017 Period

Start of Commercial Operations Building/House construction Site preparation and development government/training costs September 2020 - December 2024 March 2020 - December 2021 January 2021

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

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

t. The Company's entitlement to ITH for its BOf-registered housing project is subject to the

compliance with the provisions of the Specific Terms and Conditions of Its BOi Registration.

E Pursuant to Section + of Republic Act (RA) No. t0708. the Company is required uo tile its tax

returns and pay its tax liabilities, on or before the deadline as provided under the Tax Code of 1997. as amended, using the eiectronic system for ting and payment ot taxes of the BIR. It shail tile with BOI a complete annual tax incentives report of its income-based tax incentives. VAI and duty exemptions, deductions, credits or exelusions from the tax base. as may be provided under EO No. 226, within the periods prescribed under RA No. 10708's fmplementing Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1. 2016.

6 The Company shalt he constituted as a withholding agent for the government if it acts as empioyer and any of its employees received compensation income subject to compensation withholding tax.

or if t makes payments to inaividuats or corporations subiect to the withhotding taxes as source as roquired under Chapter XHI and Section 57 of the Tax Code of (907. as amended. and mplemented hy RR No. 2-98. as aimended.

The Company is required to file on or hefore the 15h day ot the fourth month tollowing the close of its aceounting period ot a Profit and Loss Statenent and Balance Sheet with the Annual Information Return under oath. stating its gross income and expenses incurred during the taxable I ear

x.Finally. the Company 's books of accounts and other pertinent records shall he subject to periodic and its, tax liability, if any. pursuant to Section 235 of the Tax Code of 1997, as amended. exanination by revenue enforcement ofticers of this Bureau tor the purpose ot ascertaining whether it is coinplying with the conditions under which it has been granted tax exemption or tax incentives

An Act Fnhancing Trnsparency in the Management and Accounting of Tax Incentives Tministered he" Tnvestment iantucs