BIR Ruling No. 375-2021

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OE INTERNAL REVENUE Quezon City

Certificate of Tax Exemption No::

PSH -3 7 5.- 2 Q 2 1

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

with Taxpayer Identification Number creditable withholding tax (CWT) pursuant to Section 20 (d) (1) of Republic Act (RA):No. This certifies that GRIS ALLIANC:E PROPERTIES AND DEVELOPMENT INC. is exempt from income tax 'and

7279, as amended by RA No. 10884 (Balanced Housing Development Program Amendments) dated July 17, 2016, on its income received directly in connection with its sale of socialized house and iot units' for residential and dwelling purposes to qualified beneficiaries in 'Sta. Monica Homes consisting of 559' house and lot units, located at Brgy. Sta. Monica, San Pablol City, Laguna, a project duly registered -with the Housing and Land Use Regulatorv Board (HLURB)2 under Certificate of Registration No. 1), Provisional License to Sell No. Batch 2) and Provisional License to Sell No. License to Sell No. (Batch

(Batch 3).

Moreover, the sale by the Company of residential lot valued at P1,919;500:00 and below, or house and lot and other residentiai dwellings valued at P3,199,200.00 and below, is exempt from value-added tax (VAT) pursuant to Section 109 (1) (P) of the National Internal Revenue Code (Tax Code) of 1997, as amended. Provided, however, that beginning January 01, 2021, the exemption from VAT shall only apply to'sale of house and lot and other residential dwellings3 with selling price of not more than P3,199,200.004.

It is observed, however, that documentary stamp tax (DST) is not.'one of the taxes covered by the tax exemption clause in Section 20 of RA No. 7279. Thus, the documents conveying the properties shall be subject to DST imposed under Section 196 of the Tax Code of 1997, as amended, based on the consideration contracted to be paid for such 'realties or on their fair market value determined in accordance with Section 6 (E). of the .same Code, whichever is higher. Likewise, lots/uniis ciassified as Economic Housing, not being covered by RA No. 7279, shall be subject to the payment of appropriate taxes.

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

that the facts are different, then this Certificale shall be considered null and void. documents 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 OCT 0 6 20*:

Cexcy

K-MDT Commissioner of Internal Revenue CAESAR R. DULAY 0.46103

5Now: Department of Human Settlements and Urhan Development (DHSUD) 3Sale of1o1 only, regardless of the price, shall be subject to'VAT starting Jamuary O1, 2021 pursuart to RA No. 10963. house and lot units) wnue the remaining 166 house and lot units shall not be sold for more than P530,000.00 per unit per Provisional License to Sell No. * As adjusted using 2010 the Consumer Price Index: values pursuant to Revenue Regulation No. 8-2021 dated June 11, 2021. 1Out of the 559 house and lot units, 393 house anrt 1o: rnits shall not be sold for more than P450.6oo 00 per unit per License to Sell No. (Batch 1, 273 house and lot units) and Provisional License. to Sell No. {Batch 2} 'Batch 3.120

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 559 socialized house and lot units in Sta. Monica Homes located at Brgy. Sta. Monica, San Pablo City, Laguna.

The developer shall submit the sworn statement of the buyer that he is eligible as a socialized housing beneficiary under Section 5 (A) of Revenue Regulations (RR) No. 11-97 to the Bureau of Internal Revenue (BIR) during the processing of the Certificate Authorizing Registration (CAR) for the transfer of the title of the socialized housing unit.

3 It is understood that the CAR shall only be issued after it is established upon proper verification by the Revenue District Officer (RDO) concerned that, considering the rules on valuation of real

property, the actual selling price per sale transaction of the socialized house and lot packages in this case does not really exceed P450,000.00 on the 393 house and lot units and P530,000.00 on the 166 house and lot units.