BIR Ruling No. 587-2020

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEY ARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No: V01-LEH-0587-2020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

or dwelling purposes, located at Brgy. Tulo, Calamba, Laguna, a project duly registered with Investments Code of 1987" and Section 2.57.5 (B)(2) of Revenue Regulations No. 2-98, as project (horizontal), Tierra Sueno, consisting of 405 housing units used solely for family home the Board of Investments (BOI) under Registration No. period of 4 years beginning from 16 May 2012 to 15 May 2016 or actual start of commercial 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 No. 226, otherwise known as the "Omnibus IdentificationNumber withholding tax on its income received directly in connection with its low-cost mass housing amended. This certifies that AXEIA DEVELOPMENT CORPORATION1, with Taxpayers is exempt from income tax and creditable dated May 16,2012, for a

and other. residential dwellings2 with selling price of not more than Two Million Pesos 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 1997 Tax Code, as amended. Provided, however that beginning January 1, 2021, the VAT exemption shall only apply to sale of house and lot (P2,000,000.00). Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

covered by this Certificate of Tax Exemption and shall be subject to applicable taxes under the and lot units used for commercial purposes such as leasing, retail stores, offices, etc., are not 1997 Tax Code, as amended. The sale of housing units in excess of the 405 house and lot units, including those house

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 exemption 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. This Certificate of Tax Exemption is being issued on the basis of the facts and

Issued this. day of OCT 0 6 2020

eeame

K-1-JAC Commissioner of Internal Revenue CAESAR R. DULAY -036848 O

1 Formerly Asiatic Development Corporation. Sale of lot only, regardless of the price, shall be subject to VAT starting January 1, 2021 pursuant to RA No. 10963.

Axeia Development Corporation -- Tierra Suenes CTE No.D 0[-LC H - 0-5 3 7 - 2 020 Page 2 of 2 Date issued OCT0_6 20z

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1.The exemption from income and creditable withholding taxes covers only income directly cover revenues from units with selling price exceeding P2,500,000.00. attributable to the revenues generated from the project, Tierra Suenio consisting of 405 house and lot units, located at Brgy. Tulo, Calamba, Laguna. Such exemption shall not

2 The Company is obligated to construct and sell 405 housing units based on the following schedules/sales revenues:

Year (No. of Units) Volume Value (Php'000)

I

4 3

Total

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 4iof Republic Act (RA) No. 107083: the Company is'required to file its

tax returns and pay its tax liabilities, on or before the deadline as provided under the 1997 as may be'provided under E.O.:226, within the periods prescribed under R.A. 10708's Tax Code, as'amended, usingithe electronic system for filing and payment of taxes of the Implementing Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated BIR. It shall file with BOI a complete annual tax incentives'report of its income-based tax incentives, VAT and duty exemptions, deductions, credits or exclusions from the tax base,

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:Section 57 of the Tax Code of 1997, as amended and implemented by Revenue Regulations (RR) No. 2-98, as amended.

7.The Company is required to file on or before the 15th 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 oathstating its gross income and expenses incurred during the taxable year.

8 Finally; the Companys books of acCounts and other pertinent records shall be subject to

periodicexamination 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