BIR Ruling No. 431-2021

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

Certificate of Tax Exemption No: N

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

creditable withhoiding tax pursuant to Section 20(d)(1) of Republic Act (RA) No. 7279, as Bogo City, Cebu, a socialized housing project of the NHA under its Yolanda Permanent Housing Program. by the National Housing Authority (NHA), is exempt from project-related income taxes and amended by RA No. 10884 (Balanced Housing Development Program Amendments) dated July 17, 2016, on its income received directly in connection with the construction/development of 750 compieted housing units in St. Vincent Ferrer Homes 1, Site 1, located in Brgy. Banban. This certifies that A5R DYNAMICS CONSTRUCTION CORP., an entity engaged

per house and lot package; provided further, that beginning January 1, 2021, the exemption from VAT shali only apply to saie of house and lot and other residential dwellings.2 added tax (VAT) pursuant to Section 109(1)(P) of the National Internal Revenue Code of 1997 (Tax Code), as amended. provided that the selling price thereof does not exceed P3,199,200.00 Moreover, the delivery of the 750 socialized housing units shall be exempt from value-

must issue VAT-exempt official receipts on its gross receipts from the said socialized housing housing project, since VAT is an indirect tax which can be passed on by the seller of the project. CORP. shall be subject to VAT, even if the said purchases are to be used for the socialized goods/services. It shall be understood that A5R DYNAMICS CONSTRUCTION CORP. However, the purchases of goods/artictes by A5R DYNAMICS CONSTRUCTION

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 H: :

a

CAESAR R. DULAY

Commissioner of Internal Revenue

K- E

2 Sale of Jot only, regardless of the price, shall be subject to VAT starting January 1, 2021 pursuant to RA No. 10963. 1 As adjusted using the 2010 Consumer Price Index values per Revenue Regulations No. 8-2021.