BIR Ruling No. 49-2020

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No: BOI-LEH-015-2020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

low-cost housing project (horizontal), The Hauslands Mabalacati - Brgy. Mabiga & Mauaque,Mabalacat,Pampanga,consisting of 602 house and lot units used solely for family home or dwelling purposes,located at Brgy. Mabiga & Mauaque, Mabalacat, Pampanga, a project duly registered with the Board of Investments (BOI) under Registration No. 2017-153 Taxpayers Identification Number (TIN) 233-293-553-000, is exempt from income tax and creditable withholding tax on its income received directly in connection with its economic and dated June 09, 2017, for a period of four (4) years beginning from June 2017 or actual start of commercial operations/selling, whichever is earlier, but in no case earlier than the date of registration of the project with the BOI, pursuant to Executive Order No. 226, otherwise known as the "Omnibus Investments Code of i987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, as amended. This certifies that HAUSLAND DEVELOPMENT CORPORATION, with

exemption from VAT shall only apply to sale of house and lot and other residential dwellings? 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 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

BOI per HLURB License to Sell Nos.033160 and 033161, the excess is 29 units), including subject to the payment of appropriate taxes under the National Internal Revenue Code of 1997, those units used for commercial purposes such as leasing, retail stores, offices, etc., shall be as amended. However, the sale of units in excess of the 602 house and lot units registered with the

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

This Certificate of Tax Exemption is being issued on the basis of the facts and

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

Issued this . day of JAN 2 4 2020

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K-1-LMAT Commissioner of Internal Revenue CAESAR R.DULAY 032334

2 Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963. The project name was amended as noted by the Board on November 27, 2017 from Tressa Residences to The Hauslands Mabalacat per Director Atty.Marjorie O.Ramos-Samaniego's letter dated January I1,2018.

(The Haustands Mabalacat) HAUSLAND DEVELOPMENT CORPORATION CTE No._BOI-LEH-015-2020 Date issued_ JAN 2 4 2020

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1. The exemption from income and creditable withholding taxes covers only income directly solely for family home or dwelling purposes, iocated at Brgy. Mabiga & Mauaque, Mabalacat, Pampanga. Such exemption shall not cover revenues from units with selling price exceeding Sell No. 033161 shall not be sold for more than P1,700,000.00 per house and lot, and P680,000.00 for lot only. attributable to the revenues generated from the registered project, The Hauslands Mabalacat 3 Brgy. Mabiga & Mauaque, Mabalacat, Pampanga, consisting of 602 house and lot units used P3,000,000.00. Moreover, the 409 economic lots with units and 29 lots only covered by License to

2 The Company is obligated to construct and sell 602 house and lot units based on the following

schedules/sales revenues:

Year (No. of Units) Volume (P 000) Value

1 120 260,700 2 157 342,000

4 3 144 181 312,850 393,700

Total 602 1,309,250

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

returns and pay its tax liabilities, on or before the deadline as provided under the National Internal

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 be provided under E.O. 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. Revenue Code of 1997, as amended, using the electronic system for filing and payment of taxes of

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 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.

T. 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.

3 The project narme was amended as noted by the Board on November 27, 2017 from Tressa Residences to The Hauslands

Mabalacat per Director Atty. Marjorie.O. Ramos-Samaniego's letter dated January 11, 2018. 4 An Act Enhancing Transparency in theManagement and Accounting of Tax Incentives Administered by Investment

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