BIR Ruling No. 599-2017

KEPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No: 592-2017

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

beginning from April 2017 or actual start of commercial operations/selling. whichever is Number (TIN) located at Brgy. Puro. Legazpi City. a project duly registered with the Board of Investments earlier. but in no case earlier than the date of registration of the project with the BOI. pursuant to Executive Order No. 226. otherwise known as the "Omnibus Investments Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, as amended. its income received directly in connection with its economic and low-cost housing project. Lessandra Legazpi Subdivision -- Brgy. Puro, Legazpi City, Consisting of 88 housing units (BOI) under Registration No. This certifies that COMMUNITIES NAGA, INC.. with Taxpayers Identification is exempt from income tax and creditable withholding tax on dated March 3!. 2017. for a period of 3 years

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 of 1997. as amended. Moreover, the sale by the Company of residential lot valued at P1.919.500.00 and

of appropriate taxes under the National Internal Revenue Code of :997. as amended. However, the sale of units in excess of 88 housing units shall be subject to the payment

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

that the facts are different. then this Certificate shall be considered null and void. documcnts 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 OEC 1 4 2017

-K-I-LMAT Commissioner of Internal Revenue CAESAR R. DULAY 011717

(Lessandra L.egaspi Subdivision) COMMUNITIES NAGA, INC. Dute issued 1--14m2017 CTE NO TG-07

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

I The cxemption from income and creditable withholding taxes covers on!y income directly Such exemption shall not cover"revenues from units with selling price exceeding attributabie to the revenues generated from the project."Lessandra Legazpi Subdivision Brgy. Puro, Legazpi City, consisting of 88 housing units. iocated at Brgy. Puro, L.egazpi City. P3,000.000.00. Moreover, the 88 housing units covered by I icense to Sell No. be soid for more than P1.700.000.00 per house & lot and P680.000.00 for lot only. shall not

2 The Company is obligated to construct and sell 88 housing units based on the following schedules/sales revenues:

Year 2 3 (No. of Units) Volume 44 216 18 (Php 000) Value

Total 88

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 thc 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 '. the Company is required to file its tax returns and pay its tax liabilities, on or before the deadline as provided under thc Nationa! of taxes of the BIR. It shall file with BOI a complete annual tax incentives report ot its incorme- based tax incentives. VAT and duty exemptions, deductions, credits or exclusions from the tax base, as may be provided under E.O. 226, within the periods prescribed under RA No. 10708's Implcmenting Rules and Regutations and Joint Memorandum Circular No. 1-2016 dated Internal Revenue Code of t997, as amended, using the clectronic system for filing and payment September 1, 2016.

6. The Company shall be constituted as a withholding agent for the government if it acts as internal Revenue Code of 1997, as amended, and impiemented hy Revenue Regulations (RR ) employer and any of its employees received compensation income subject to compensation withholding tax. or if it makes payments to individuais or corporations subject to the withholding taxes as source as required under Chapter XllI and Section 57 of the Nationa! No. 2-98, as amended. 7. 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 Shect 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 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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