BIR Ruling No. 003-2022

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

Certificate of Tax Exemption No: BCLLEH-G03-2022

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

and lot units used solely for family home or dwelling purposes, located at Brgy. Caanawan, San Jose City, Nueva Ecija, a project duly registered with the Board of Investments (BOI) BOI, pursuant to Executive Order (EO) No. 226, otherwise known as the "Omnibus Investments Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, on its income received directly in connection with its economic and low-cost housing project, years beginning from December 2020 or actual start of commercial operations/selling, whichever is earlier, but in no case earlier than the date of registration of the project with the Number (TIN) Camella San Jose -- Brgy. Caanawan, San Jose City, Nueva Ecija, consisting of 193 house under Certificate of Registration No. as amended. This certifies that COMMUNITIES TARLAC, INC. with Taxpayer Identification , is exempt from income tax and creditable withholding tax dated December 28, 2020, for a period of 3

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 National Internal Revenue Code (Tax Code of shall only apply to sale of house and lot and other residential dwellingst valued at 1997, as amended. Provided, however, that beginning January 01,2021, the VAT exemption P3,199,200.002. Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

registered with the BOI, if any, including those units used for commercial purposes such as leasing, retail stores, offices, etc. shall be subject to the payment of appropriate taxes under the Tax Code of 1997, as amended. However, the sale of house and lot units in excess of the 193 house and lot units

The Company is liable, however, for all other applicable taxes not discussed above. applicable BIR rules and regulations and the Terms and Conditions stated at the back hereof. 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 JAN

1aeesa

K-1 -G PS Commissioner of Internal Revenue CAESAR R.DULAY 0484491

2 As adjusted using the 2010 Consumer Price Index values pursuant to RR No. 8-2021 dated June 11, 2021. Sale of lot only,regardless of the price,shall be subject to VAT starting January 01,2021 pursuant to RA No.10963.

page 2 of 2 Camella San Jose Date issued CTE No.101-LEH1-2U3232 AN

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

The exemption from income and creditable withholding taxes covers only income directly dwelling purposes located at Brgy.CaanawanSan Jose City,Nueva Ecija. Such exemption shall attributable to the revenues generated from the project,Camella San Jose Brgy.Caanawan,San Jose City Nueva Ecija, consisting of not cover revenues from units with selling price exceeding P2,000,000.00.Moreover, the 193 housing units covered by License to Sell No. per house and lot. house and lot units used solely for family home or shall not be sold for more than P1,700,000.00

2.The enterprise shall observe the following project timetable:

Activity Period Land Acquisition Secure necessary license/permit/registration from the September 2017 to October 2020 April 2017

Start of Commercial Operations Site preparation and development Building/House construction government/training costs September 2018 to December 2022 March 2019 to December 2022 December 2020

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. 107083, the Company is required to file its tax returns and pay its tax liabilities, on or before the deadline as provided under the Tax Code of 1997.

as amended,using the electronic system for filing and payment of taxes of the BIR. It shall file with BOI 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 provided under EO No. 226, within the periods prescribed under RA No. 10708's Implementing Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1, 2016.

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 withholding taxes as source as

required under Chapter XIII and Section 57 of the Tax Code of 1997, as amended, and implemented by RR No.2-98, as amended.

7.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.

8.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 any,pursuant to Section 235 of the Tax Code of 1997, as amended.

An Act Enhancing Transparency-in the Management and-Aceounting-of Tax Ineentives Administere

Promotion Agencies.