BIR Ruling No. 40-2020

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No:

BOI-I EH-006-2020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

as the "Omnibus Investments Code of 1987" and Section 2.57.5 (B)(2) of Revenue Regulations family home or dwelling purposes, located at Brgy. San Isidro Norte, Sto. Tomas, Batangas, a dated September 30, 2019, for a period of 4 years beginning from January 2020 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 No. 2-98, as amended. withholding tax on its income received directly in connection with its economic and low-cost housing project, Casa Isabel Phase 1, consisting of 235 house and lot units used solely for project duly registered with the Board of Investments (BOI) under RegistrattomNo. Taxpayer Identification Number This certifies that THE NEW APEC DEVELOPMENT CORPORATION, with , is exempt from income tax and creditable

below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is that beginning January 1, 2021, the VAT exemption shall only apply to sale of house and lot and other residential dwellings with selling price of not more than Two Million Pesos (P2.000,000.00). VAT-exempt under Section 109(1)(P) of the 1997 Tax Code, as amended. Provided, however, Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

not covered by this Certificate of Tax Exemption and shall be subject to applicable taxes under house and lot units used for commercial purposes such as leasing, retail stores, offices, etc., are the 1997 Tax Code, as amended. The sale of house and lot units in excess of the 235 house and lot units, including those

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

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

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.

Issued this day of JAN 1 0 2020

1egcmrea

CAESAR R. DULAY

K-1 Commissioner of Internal Revenue 4 031965

Sale of lot only, regardless of the price, shall be subject to VAT starting January 01,2021 pursuant to RA No. 10963

The New Apec Development Corporation Casa Isabel Phase 1 Page 2 of 2 CTE No. BOI-LEH-006-2020 Date Issued JAN 1 8 2028

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, Casa Isabel Phase 1 consisting of 235 house and lot units, located at Brgy. San Isidro Norte, Sto. Tomas, Batangas. Such exemption shall not cover revenues from units with selling price exceeding P2,000,000.00. Moreover, the 235 house and lot units per HLURB License to Sell No. for more than P1,700,000.00 per house & lot package. shall not be sold

2 The enterprise shall observe the following project timetable.

Activity Period Land acquisition October 2014 to June 2018

Secure necessary license/permit/registration from the government/training costs Site preparation and development June 2015 to December 2019 October 2016 to June 2017

Building/House construction April 2018 to January 2024 3e?

Start of Commercial Operations January 2020

3.In the computation of the project's ITH, the following shall apply

a. Only income generated from the sale of housing units (Casa Isabel Phase 1 -- Brgy

San Isidro Norte, Sto. Tomas, Batangas) with selling price not exceeding PhP2.0M

such as leasing, retail stores, offices, etc. shall be qualified. and used solely for family home or dwelling purposes and not for commercial purposes

D Interest income from in-house financing shall not be considered as revenues generated

from the registered activity.

A 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 1997 Tax Code, as amended, using the electronic system for filing and payment of taxes of the BIR. It

shall file with BOI a complete annual tax incentives report of its income-based tax incentives,

provided under E.O. 226, within thirty (30) days from the deadline for filing of tax returns and VAT and duty exemptions, deductions, credits or exclusions from the tax base, as may be

payment of taxes.

5. 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.

6. 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 oath, stating its gross income and expenses incurred during the

taxable year.

7.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 Tax Code

of 1997, as amended.

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