BIR Ruling No. 47-2020

BUREAU OF INTERNAL REVENUE REPUBLICOE THF PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No: B0I-LEH-O13-2020

CERTIFICATE OF TAXEXEMPTION

TO ALL WHOM IT MAY CONCERN:

registration of the project with the BOI, pursuant to Executive Order No. 226, otherwise known as the "Omnibus Investments Code of 1987" and Section 2.57.5 (B)(2) of Revenue Regulations dated August 5, 2019, for a period of 3 years beginning from August 2019 or actual start of commercial operations/selling, whichever is earlier, but in no case earlier than the date of No. 2-98, as amended. housing project, Birmingham Village Phase 3, consisting of 297/house and lot units used solely for family home or dwelling purposes, located at Brgy. Pulo, Cabuyao City, Laguna. a project duly registered with the Board of Investments (BOT) under Registration No. withholding tax on its income received directly in connection with its economiand low-cost Taxpayer Identification Number This certifies that THE NEW APEC DEVELOPMENT CORPORATION, with is exempt from income tax and creditable

that beginning January 1, 2021, the VAT exemption shall only apply to sale of house and lot below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is and other residential dwellings' with selling price of not more than Two Million Pesos VAT-exempt under Section 109(1)(P) of the 1997 Tax Code, as amended. Provided, however, Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

(P2.000.000.00).

The sale of house and lot units in excess of the 297 house and lot units, including those

house and lot units used for commercial purposes such as leasing, retail stores, offices, etc., are

not covered by this Certificate of Tax Exemption and shall be subject to applicable taxes under

the 1997 Tax Code, as amended.

The grant of tax exemption herein is subject to the compliance with the provisions of

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 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 ofJAN 1 7 2020

1aesaa

CAESAR R.DULAY

Commissioner of Ingap.al Revenue 032145

Birmingham Village Phase 3 The New Apec Development Corporation Date issuedJAN1ZU CTE No. B0I-I-013-2020

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TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

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

attributable to the revenues generated from the project, Birmingham Village Phase 3 consisting of 297 house and lot units, located at Brgy. Pulo, Cabuyao City, Laguna. Such exemption shall not cover revenues from units with selling price exceeding P2,000,000.00. Moreover, the 297 house and lot units per HLURB License to Sell No. shall not be sold

for more than P1.700.000.00 per house & lot unit package.

2.The enterprise shall observe the following project timetable.

Activity Period

Land acquisition September 2012-March 2013

from the government/training costs Secure necessary license/permit/registration Pite preparation and development October 2016-Mr.ci6 April2016-June 20:9

Building/House construction January 2017 - July 2022

Start of Commercial Operations August 2019

3. In the computation of the project's ITH, the following shall apply

a. Only income generated frorn the sale of housing units (Birmingham Village Phase 3

used solely for family home or dwelling purposes and not for commercial purposes such as leasing, retail stores, offices, etc. shall be qualified. -- Brgy. Pulo, Cabuyao City, Laguna) with selling price not exceeding PhP2.0M and

b Interest income from in-house financing shall not be considered as revenues generated

from the registered activity.

4.Pursuant to Section 4 of Republic Act.(RA) No. 107082, the Company is required to file its tax returns and pay its tax liabilities, on or before the deadline as provided under the 1997 Tax

shall file with BOI a complete annual tax incentives report of its income-based tax incentives. Code, as amended, using the electronic system for filing and payment of taxes of the BIR. It VAT and duty exemptions, deductions, credits or exclusions from the tax base, as may be provided under E.O. 226, within thirty (30) days from the deadline for filing of tax returns and payment of taxes.

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

6. 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.

7. 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

exemption or tax incentives and its tax liabilityif anypursuant to Section 235 of the Tax Code ascertaining whether it is complying with the conditions under which it has been granted tax

of 1997.as amended.