BIR Ruling No. 487-2017

REPURLIGOE THE PHLIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City.

Certificate of Tax Exemption No: 487-2017

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

low-cost housing project, Deca Homes Mactan 5 Subdivision -- Basak, Lapu-Lapu City. Cebu, consisting of i,196 housing units located at Basak. Lapu-Lapu City. Cebu. a project duly registered with the Board of Investments (BOI) under Registration No. January 10. 2011. for a period of 4 years beginning from January 2011 or actual start of commercial operations/selling. whichever is earlier. but in no case earlier than the date ot registration of the project with the BO1, pursuant to Executive Order No. 226. otherwise known as the "Omnibus Investments Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98. as amended. with Tax identification Numher (TIN) creditable withholding tax on its income received directly in connection with its economic and This certifies that 8990 CEBU HOUSING DEVELOPMENT CORPORATION is exempt from income tax and dated

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 amended. Moreover, the sale by the Company of residential tot valued at P1.919.500.00 and

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

that the facts are different. then this Certificate 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. I. day of 0CT 19 2017

8

-K-1-FDPM /LMAT Commissioner of internal Revenue CAESAR R. DULAY 010043

8990 CEBU HOUSING DEYELOPMENT CORPORA : 1ON (Deca Homes Mactan 5 Subdivision) CTE NO. Date issued_10-45-2017 9.7-3017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

The exemption from income and creditable withholding taxes covers only income directly attributabie to the revenues generated froin the project, Deca Homes Mactan 5 Suhdivision - Basak, Lapu-Lapu City, Cebu, consisting of 1.196 housing units located at Basak. Lapu-l apu City, Cebu. Such exemption shall not cover revenues from housing units with selling price exceeding P3.000.000.00. Morcover. the 1.196 housing units covered by License to Sell No. shall not be sold for more than P1.250.000.00 per house and lot.

2 The Company is obligated to construct and sell 1.196 housing units based on the following schedules'sales reventes:

Year 3 (No. of Units) Volume 299 29 (Php '000 Value

Total 4 3 1 29 29 9

3 In the coinputation of the project's I'TH. interest income from in-house financing shall not be considered as part of the revenues generated from the registered housing project.

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 tax 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 the BIR. It shall fite with BOI a coinplete annual tax incentives report of its income- based tax incentives. VAT and duty exenptions. deductions, credits or exclusions from the tax base. as may he provided under E.0. 226. within the periods prescribed under RA No. 10708's Implementing Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1. 2016.

6. The Company shall he 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 XIll and Section 57 of the Nationa! Intcrnal Revenue Code of 1997. as amended, and implemented by Revenue Regulations (RR) No. 2-98. as amended.

T The Company is required to file on or before the Isth day of the fourth month following the

close of its accounting period of a Profit and L.oss Statement and Balance Sheet with the Annual Information Return under oath, stating its gross income and expenses incurred during the taxable ycar.

8. Finally, the Company's books of accounts and other pertinent records shall be subject to ascertaining whether it is complying with the eonditions under which it has been granted tax pcriodic examination hy revenue enforcement officers of this Bureau for the purpose of exemption or tax incentives and its tax liability. if any, pursuant to Section 235 of the National Internal Revenue Code of' 1997. as amended.

: An Act Lnhancing Transparency in the Management and Accounting of Tax Incentives Administered by Insestment Promotion Agenctes.

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