BIR Ruling No. 619-2017

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE: PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No: 61-20-7

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

March 4. 2015. for a period of 4 years beginning from March 2015 or actual start of as the "Omnibus Investments Code of 1 987" and Section 2.57.5 (B)(2) of Revenue Regulations Identification Number withholding tax on its income received directly in connection with its low-cost housing project. Deca Homes Sabella. consisting of 218 units located at Brgy. Abella. Naga City. a project commercial operations/selling, whichever is earlier, but in no case earlier than the date of registration of thc project with the BOI. pursuant to Executive Order No. 226. otherwise known No. 2-98. as amended. duly registered with the Board of Investments (BOI) under Registration No. This certifies that LYRR REALTY DEVELOPMENT CORPORATION with Tax is exempt from income tax and creditabic dated

below, 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. Moreover. the sale by the Company of residential lot valucd at P1,919,500.00 and

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

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

Issued this. day of OFC 1.8 2017

Lov

Commissioner of Interpal Reven CAESAR R. DULAY 01178 2

K -1-JAC

L YRR Realty Development Corporation Page 2 of 2 Date issued 12-18-2017 C iE No. 619-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1 The exemption from income and creditable withholding taxes covers only income directly

units. located at Brgy. Abella, Naga City. Such exemption shall not cover revenues from units attributabie to the revenues generated fron the project, Deca Homes Sabella consisting of 218 with selling price exceeding P3,000,000.00.

2. The Company is obligated to construct and sell 218 housing units based on the following schedules/sales revenues:

Year 2 (No. of Units) Volume 64 83 Valuc (Php)

Total 3 4 218 5 1

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. 10708', the Company is required to file its tax

Code, as amended, using the electronic system for filing and payment of taxes of the BIR. It returns and pay its tax liabitities. on or before the deadline as provided under the 1997 Tax provided under E.O. 226, within thirty (30) days from the deadline for filing of tax returns and shali file with BOl 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 payment of taxes.

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 inconie subject to compensation withholding tax, or if it makes payments to individuals or corporations subiect to the withhoiding taxes as source as required under Chapter XIl1 and Section 57 of the Tax Code of 1997, as amended and implemented by Revenue Regulations (RR) No. 2-98. as amended.

The Company is required to file on or before the 15" day of the fourth month following the taxabte year. 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

R Finally, the Company's books of accounts and other pertinent records shall be subject to

of 1997, as amended. 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 T'ax Code

Investment Promotion Agencies. : An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Administered by.