BIR Ruling No. 348-2018

T BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificat 348-2018 of Tax Exemption No:

CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN:

value-added tax (V AT) pursuant to Section 20 of Republic Act (RA) No. 7279 on its income received "directly in connection with its sale of socialized`housing units to qualified beneficiaries in: (TIN) This certifies that 77 LIVING SPACES, INC. with Taxpayers Identification Number is exempt from income tax, creditable' withho(ding tax (CWT) and

I. Aldea Homes Subdivision (Socialized Housing), consisting of 291 only; and does not exceed socialized units, located at Brgy. Cangmating, Sibulan, Negros Oriental, a project duly registered with the Housing and Land Use Regulatory Board (HLURB) under Certificate of Registration No. No. , both dated Sentember 07, 2012, provided that the selling price per house and lot and t and License to Sell per lot

the same Code, whichever is higher. Internal Revenue Code of 1997, as amended. based on the consideration contracted to be paid for such reaities or on their fair market value determined in accordance with Section 6 (E) of covered by the tax exemption clause in Section 20 of RA No. 7279. Thus, the documents Conveying the properties shall be subject to DST imposed under Section 196 of the Nationa! It is observed. however. that documentary stamp tax (DST) is not one of the taxes selling price of said units does not exceed P located at Brgy. Cangmating, Sibulan, Negros Oriental, a project duly registered with the HLURB under Certificate of Registration No. License to Sell No. Aldea Homes Subdivision Phase II, consisting of 377 socialized units. both dated April 12, 2016, provided that the per house and lot. and

2 Per Certification of the HLURB. Cenfral Visayas Region, Cebu City, dated March 03, 2017, 77 effect on December 18, 2013. Living Spaces, Inc. is qualified to sell their remaining house and lot package from a maximum selling to RA No. 10963. price of below: provided further. that beginning January 01, 2021, the VAT exemption shall oniv annlv to sale Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 202! pursuant of house and lot and other residential dwellings with selling price of not more than of the National Internal Revenue Code of 1997. as amended, provided. that its sale of residential lot Section 20(d)(3) of RA 7279 was repealed by RA No. 10963. Thus, the herein VAT exemption January 01, 2018. 77 Living Spaces, Inc. shait be exempt from VAT pursuant to Section 109(1)(P) St pursuant to Section 20(d)(3) of RA No. 7279 shall apply only up to December 31, 2017. Starting and below, or house and lot and other residential dwellings is ! to as per HUDCC Resolution No. 1, series of 2013, which took and

(Aldea Homes Subaivision) 77 LIVING SPACES. INC CTE.Vo. 348-2018 Date issued_3-82018

The gran't of tax exemption herein is subject to the compliance with the provisions of applicabie BiR rules and regulations and the"Terms and Conditions3 stated" hereof. The Company is liable, however, for other appiicabie taxes not discussed above.

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

Issued this day of.MAR t 8 2018

S

CAESAR R. DULAY

-EK-I-LMAT Commissioner of Internal Revenue B+ 01415-

3 TERMS AND CONDITIONS:

The exemption from income, creditabie withhoiding taxes and VAT covers only income directly

attributabie to the revenues generated from the 291 socialized housing units in Aldea Homes Subdivision (Socialized Housing) and the 377 socialized housing units in Aldea Homes

Subdivision Phase II, both iocated at Brgy. Cangmating, Sibulan, Negros Oriental.

2 The developer shall submit the sworn statement of the buyer that he is eligible as a socialized housing beneficiary under Section 5 (A) of Revenue Reguiations (RR) No. t 1-97 to the BIR

during the processing of the Certificate Authorizing Registration (CAR) for the transfer of the title of the socialized housing unit.

It is understood that the Certificate Authorizing Registration (CAR) shall only be issued after it 3. is established upon proper verification by the Revenue District Officer (RDO) concerned that.

considering the rules on vaiuation of real property:

the actual selling price per sale transaction of the socialized house and lot packages in Aidea Homes Subdivision (Socialized Housing) does not really exceed : and P160.000.00 for lot oniy; provided, that starrinu Decemher :8. 2013. the maximum selling price for house and lot packages is i and P for lot only; and

b the actual seiling price per sale transaction of the socialized house and lot packages: in Aldea Homes Subdivision Phase HI does not really exceed

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