BIR Ruling No. 517-2020

REPUBLICOF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No:

BOI-LEH-0517-2070

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN

This certifies that VANCOUVER LANDS INCORPORATED, with Taxpayers Identification Number (TIN) is exempt from income tax and creditable withholding tax on its income received directly in connection with its economic and low-cost housing project, Trees Residences Phase 3 -- Quirino Highway, Barangay Pasong Putik, Novaliches, Quezon City, consisting of 2,471 residential units used solely for family home or

to June 28, 2021, pursuant to'Executive Order No. 226, otherwise known as the "Omnibus dwelling purposes, located at Quirino Highway, Barangay Pasong Putik, Novaliches, Quezon City, a project duly registered with the Board of Investments (BOI) under Registration No. as amended, provided that the selling price of said residential units does not exceed Investments Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98. P3,000,000.00 per residential unit. dated April 26, 2018, for a period of three (3) years beginning from June 29, 2018

Moreover, the sale by the Company of residential lot valued at P1,919.500.00 and below, or house and lot and other residential 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 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 dwellings? with selling price of not more than P2,000,000.00.

However, the sale of residential units in excess of the 2,471 residential units registered

purposes such as leasing, retail stores, offices, etc., shall be subject to the payment of appropriate taxes under the National Internal Revenue Code of 1997, as amended. with the BOI, if any, as well as the 50 parking slots, including those units used for commercial

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 SEP 1 5 2020

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K-1-LMAT C Commissioner of Internal Revenue CAESAR R.DULAY 036696

: Per Certification dated June 25, 2020 issued by the BOI. 2 Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to Republic Act (RA) No. 10963.

(Trees Residences Phase 3) VANCOUVER LANDS INCORPORATED CTENo.0517-2020 Date issued_SEP 1 5 2020

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

The exemption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the project, Trees Residences Phase 3 -- Quirino Highway, Barangay Pasong Putik, Novaliches, Quezon City, consisting of 2,471 residential units used solely for family home or dwelling purposes, located at Quirino Highway, Barangay Pasong Putik, Novaliches, Quezon City. Such exemption shall not cover revenues from units with selling price exceeding P3,000,000.00.

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

Only income generated from the sale of housing units (Trees Residences Phase 3 - Quirino Highway, Barangay Pasong Putik, Novaliches, Quezon City) with selling price not commercial purposes such as ieasing, retail stores, offices, etc. shall be qualified. exceeding Php3.0M and used solely for family home or dwelling purposes and not for

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

from the registered activity.

3. 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.

Pursuant to Section 4 of Republic Act (RA) No. 107083, the Company is required to file its tax the 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, as may Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1, 2016. returns and pay its tax liabilities, on or before the deadline as provided under the National Internal Revenue Code of 1997, as amended, using the electronic system for filing and payment of taxes of be provided under E.O. 226, within the periods prescribed under RA No. 10708's Implementing

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 National Internal Revenue 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 it is complying with the conditions under which it has been granted tax exemption or tax incentives examination by revenue enforcement officers of this Bureau for the purpose of ascertaining whether 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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