BIR Ruling No. 649-2017

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No: 649-2017

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

with its economic and low-cost housing project. Camella Davao - Purok 7. Barangay Purok 7, Barangay Communal, Buhangin District, Davao City. a project duly registered the project with the BOI, pursuant to Executive Order No. 226, otherwise known as the from income tax and creditable withholding tax on its income received direcuy in connection Communal, Buhangin District, Davao City consisting of 1,051 housing units located at with the Board of Investments (BOf) under Registration No. for a period of 3 years beginning from April 2017 or actual start of commercial operations/selling. whichever is earlier, but in no case carlier than the date of registration of "Omnibus Investments Code of 1987" and Sec.2.57.5 (B)(2) of RR No. 2-98, as amended. This certifies that COMMUNITIES DAVAO with TIN dated March 31. 2017. is exempt

below, or house and lot and other residentiai 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 valued at P1.919.500.00 and

payment of appropriate taxes under the 1997 Tax Code, as amended. However, the sale of units in excess of 1,051 housing units shall be subject to the

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 ahove. 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 DEC 1 9 2017

tauram

K-I Commissioner of Internal Revenuc CAESAR R. DULAY 011995

Page 2 of'2 Conmumities Davao. Date issued_1--19-2017 CTE No. 646-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

The exemption from income and creditable withholding taxes covers only income directly shall not cover revenues from units with selling price exceeding P3.000.000.00. Moreover. the 771 housing units covered by License to Sell No. attributable to the revenues generated from the project. Camella Davao - Barangay Communal. Buhangin District, Davao City consisting of 1,051 housing units. located at Purok 7., Barangay Communal. Buhangin District, Davao City."Such exemption P1,700,000.00 per house & lot. shall not be sold for more than Purok

The Company is obligated to construct and sell L051 housing units based on the following schedulesisalcs revenues:

Year Ic C (No. of Units) Votune 210 55 284 Value (Php 000)

Total 1,051

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 I'T'H for its BOi-registered housing project is subject to the compliance with the provisions of the Specific Terms and Conditions of its BOI Registration.

Pursuant to Section 4 of Rcpublic Act (RA) No. 10708', the Company is required to fite its tax returns and pay its tax liabilities. on or before the deadline as provided under the 1997 Tax Code. as amended, using the electronic system for filing and payment of taxes of the BiR. It shall filc with BOi a complete annual tax incentives report of its income-based tax incentives. provided under E.O. 226, within the periods prescribed under R.A. 10708's Implementing Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1, 2016. VAT and duty exemptions, deductions. credits or exclusions from the tax base. as may be

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 XIH and Section S7 of the Tax Code of 1997. as amended and impiemented by Revenue Regulations (RR) No. 2-98. as amended. The Company is required to file on or before the !5th day of the fourth month foilowing the ciose of its accounting pcriod of a Profit and Loss Statement and Balance Sheet with the Annuai Information Return undcr 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 exemption or tax incentives and its tax liability. if any, pursuant to Section 235 of the Tax periodic examination by revenue enforcement officers of this Bureau for the purpose of ascertainingewhether it is complying with the conditions under which it has been granted tax Code of :997, as amended.

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