BIR Ruling No. 265-2020

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No:

BOI-LEH-02 65-2 0 2 0

CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN:

October 30, 2017, pursuant to Executive Order (EO No.226, otherwise known as the No. 2-98, as amended. Trees Residences Phase1"Quirino Highway, Barangay Pasong PutikNovaliches purposes, located at Quirino Highway, Barangay Pasong Putik, Novaliches, Quezon City, a project duly registered with the Board of Investments (BOI) under Registration No. 2014-045 dated March 05, 2014, for a period of three (3) years beginning from October 31, 2014 to Omnibus Investments Code of 1987 and Section 2.57.5 (B) (2) of Revenue Regulations (RR) its income received directly in connection with its low cost mass housing project (vertical), Quezon City, consisting of 2,0931 housing units used solely for family home or dwelling Number (TIN) This certifies that VANCOUVER LANDS, INC., with Taxpayers Identification , is exempt from income tax and creditable withholding tax on

below, or house and lot and other residentiai dwellings valued at P3,199,200.00 and below, is exemption from VAT shall only apply to sale of house and lot and other residential dwellings 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 with selling price of not more than P2,000,000.00. Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

the BOI, if any, as well as the:294 parking slots, including those other units used for commercial appropriate: taxes under the National Internal Revenue Code of 1997, as amended. purposes such as leasing, retail stores, offices, etc.,_shall be subject to the payment of However, the sale of housing units in excess of the 2,093 housing units registered with

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 MAY 2 6 2020

taeony

1K-1-LMAT Commissioner of Internal Revenue CAESAR R.DULAY 033606

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Sale of lot only, regardles of the price,shall be subject toVAT starting January O1,2021 pursuant to Republic Act (RA Per License to Sell No. 033394 dated June 25, 2018 issued by the Housing and Land Use Regulatory Board (HLURB). No. 10963.

(Trees Residences Phase 1) VANCOUVER LANDS, INC. Date issued: CTE No.: BOI-LEH- MAY 2 6 2020 0265-2020

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

l. The exemption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the project, Trees Residences Phase i - Quirino Putik, Novaliches, Quezon City. Such exemption shall not cover revenues from units with selling Highway, Barangay Pasong Putik, Novaliches, Quezon City, consisting of 2,093 housing units used solely for family home or dwelling purposes, located at Quirino Highway, Barangay Pasong price exceeding P3,000,000.00.

2.The Company is obligated to comply with the following schedules/sales revenues:

Year (No. of Units) Volume 1,650 2,338,840 (P000 Value

2 444 629,361 3 Total 2,094 2,968,201

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. 107084; the Company is required to file its tax

Revenue Code of 1997, as amended, using the electronic system for filing and payment of 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 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 be provided under E.O. 226,:within the periods prescribed under RA No. 10708's Implementing

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, required under Chapter XIII and Section 57 of the National Internal Revenue Code of 1997, as or if it makes payments to individuals or corporations subject to the withholding taxes as source as amended, and implemented by Revenue Regulations (RR) No. 2-98, as amended.

7.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.

8. Finally, the Company's books of accounts: and other pertinent records shall be subject to periodic

examination by revenue enforcement officers of this Bureau for the purpose of 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.

3While the company is obligated to construct 2,094 housing units, the exemption from income and CWT covers only revenues

generated from the 2,093 housing units allowed per HLURB License to Sell No. 033394 dated June 25, 2018.

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

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