BIR Ruling No. 664-2017

REPUBLIC OF THF PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City

1 Certificate of Tax Exemption No: 004-2017

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

2..2016. for a period of four (4) years beginning from June 2016 or actual start of Taxpayers Identification Number (TIN) creditable withhoiding tax on its income received directly in connection with its economic and low-cost housing project, Grand Monaco -- Casa Royale -- Brgy. Libis, Binangonan, Rizal, consisting of 63 housing units located at Brgy. Libis, Binangonan, Rizal. a project duiy registered with the Board of Investments (BOI) under Registration. No. commercial operations/selling, whichever is earlier, but in no case earlicr than the date of registration of the project with the BOI, pursuant to Executive Order No. 226. otherwise This certifies that GRAND MONACO ESTATE DEVELOPERS, INC., with , is exempt from income tax and dated June

known as the "Omnibus Investments Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, as amended.

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 Moreover, the sale by the Company of residential lot valued at P1,919.500.00 and

amended.

payment of appropriate taxes under the National Internal Revenue Code of 1997. as amended. However, the sale of units in excess of 63 residentiai units shall be subject to the

The grant of tax exemption herein is subject to the compliance with the provisions of applicabie 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 Excmption 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 shail be considered null and void.

Issued this day of DEC 2 0 2017

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ZK-1-LMAT Commissioner of Internal Revenue CAESAR R. DULAY 011980

GRAND MONACO ESTATE DEVELOPERS, INC. (Grand Monaco -- Casa Roy'ale) Date issued 12-20-20 CTE NO. 664-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

t. The exemption from income and creditable withhoiding taxes covers only income directly

attributable to the revenues generated from the project, Grand Monaco - Casa Royaie exceeding P3.000,000.00. Brgy. Libis, Binangonan, Rizal, consisting of 63 housing units, located at Brgy. L.ibis, Binangonan, Rizal. Such exemption shall not cover revenues from units with selling price

2 The Company is obligated to construct and sell 63 housing units based on the following

schedules/sales revenues:

Year E (No. of Units) Volume 22 Value (Php)

Total 2 3 4 28 63 L 3

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 4 of Republic Act (RA) No. 10708', the Company is required to file its its income-based tax incentives, VAT and duty exemptions. deductions, credits or exclusions tax returns and pay its tax liabilities, on or before the deadline as provided under the National payment of taxes of the BIR. It shall file with BOI a complete annual tax incentives report of from the tax base, as may be provided under E.O. 226, within the periods prescribed under RA No. 10708's Implementing Rules and Regulations and Joint Memorandum Circular No. Internal Revenue Code of 1997, as amended, using the electronic system for filing and 1-2016 datcd September 1, 2016.

1 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 individuais or corporations subject to the withholding taxes as source as required under Chapter XII! and Section 57 of the National Internal Revenue Code of 1 997, as amended, and implemented by Revenue Regulations (RR) No. 2-98, as amended.

I The Company is required to file on or before the 15h 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.

8. Finally, the Company's books of accounts and other pertinent records shall be subject to 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. periodic examination by revenue enforcement officers of this Bureau for the purpose of

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

PAGF ?OF?