BIR Ruling No. 630-2017

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City.

Certificate of Tax Exemption No: 630-2017

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

98, as amended. Identification Number G, consisting of 189 units located at Brgy. Balabag-Ungka II, Pavia, Iloilo City, a project duly operations/selling, whichever is earlier, but in no case earlier than the date of 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 (RR) No. 2- withholding tax on its income received directiy in connection with its project, Parc Regency registered with the Board of Investments (BOI) under Registration No. 10. 2015. for a period of 3 years beginning from June 2015 or actual start of commercial This certifies that PROPERTY COMPANY OF FRIENDS, INC., with Tax is exempt from income tax and creditable dated June

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 valued 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

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 DEC 1 9 2017

CA

K-1 Commissioner of Internal Revenue CAESAR R. DULAY 0119 32

Page 2 of 2 Property Company of Friends,Inc. Date issued 12-19-2017 CTE No. 630-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1. The exemption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the project,Parc Regency G consisting of 189 units, located at Brgy.Balabag-Ungka II,Pavia,Iloilo City. Such exemption shall not cover revenues from units with selling price exceeding P3,000,000.00.

2 The Company is obligated to construct and sell 189 low-cost mass housing units based on the

following schedules/sales revenues:

Year I Volume (No. of Units) 516 Sales Value(PhP

Total 3 2 189 58 15

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 ActRANo.10708the Company is required to file its tax

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 payment of taxes. 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. provided under E.O.226,within thirty(30 days from the deadline for filing of tax returns and

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 income subject to compensation 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 withholding taxes as source as required under Chapter XIII and Section 57 of the Tax Code of

7. The Company is required to file on or before the 15th day of the fourth month following the Information Return under oath, stating its gross income and expenses incurred during the taxable year. close of its accounting period of a Profit and Loss Statement and Balance Sheet with the Annual

8. of 1997, as amended. 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 ascertaining whether it is complying with the conditions under which it has been granted tax exemption or tax incentives and its tax liability,if anypursuant to Section 235 of the Tax Code

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