BIR Ruling No. 342-2020

REPUBLICOF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No. B1-0342-2020

CERTIFICATE OF TAX EXEMPTION

TO WHOM IT MAY CONCERN:

project, Camella del Rio -- BF Resort Village, Barangay Talon Dos, Las Piias City consisting Barangay Talon Dos, Las Pinias City, a project duly registered with the Board of Investments (BOI) withholding tax on its income received directly in connection with its low cost mass housing of i11 housing units and lot units used solely for family home or dwelling purposes located at earlier that the date of-registration of the project with the-BOI, pursuant- -to Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987 and Section 2.57.5(B)(2) of August 2013 or actual start of commercial operation/selling, whichever is earlier, but in no case. Revenue Regulations 2-98, as amended. Identification Number(TIN) under Registration No. This certifies that HOUSEHOLD DEVELOPMENT CORPORATION with Tax dated August 22, 2013, for a period of 3 years beginning from is exempt from income tax and creditable

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

be subject to the regular taxes that may be applicable. including those units used for commercial purposes such as leasing, retail stores, offices, etc., shall Board of Investments (BOI) (per HULRB License to Sell No. The sale, however, of housing units in excess of the 111 housing units registered with the 2, the excess is 57 units),

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

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 documents as]

Issued this day of JUN 2 4 2020

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K-1 Commissioner of Internal Revenue CAESAR R.DULAY 035579

Page 2 of 2 Household Development Corp. -- Camella del Rio CTENoBC- 0 342 - 2 -7-3 Date issuedJUN 2 4 202U

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

directly attributable to the revenues generated from the project, Camella del Rio BF The exemption from income and creditable withholding taxes covers only_ income Resort Village, Barangay Talon Dos, Las Pinas City consisting of 111 housing units used Solely for family home or dwelling purposes located at Barangay Talon Dos, Las Pifias City. Such exemption shall not cover frevenues from units with selling price exceeding P3,000,000.00.

2 The Company is obligated to construct and sell 111 housing units based on the following

schedules/sales revenues:

Year Volume Value000

(No. of Units)

I 31 86,391

2 38 106,058

Total 3 111 42 309,627 117,178

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 from 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 the Republic Act (RA) No. 107083. the Company is required to

the 1997 Tax Code. as amended. using the electronic svstem for filing and payment of file its tax returns and pay their tax liabilities. on or before the deadline as provided under taxes of 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 mav be provided under E.O.226. within the periods prescribed under R.A. 10708's Implementing Rules and Regulations and Joint Memorandum Circular No.1-2016 dated September 1,2016

6 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 at source as required under Chapter XIII and Section 57 of the Tax Code of 1997, as amended and implemented by Revenue Regulations No. 2- 98, as amended.

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.

Finally, the Company's books of accounts and other pertinent records shail be subject to periodic examination by revenue enforcement officers of this Bureau for the purpose of ascertaining whether it has been 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.

An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Administered by