BIR Ruling No. 389-2020

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No: PSH-0389-2020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

and lot units for residential and dwelling purposes to qualified beneficiaries in Anibong Identification Number (TIN) withholding tax (CWT) pursuant to Section 20 (d) (1) of Republic Act (RA) No. 7279, as amended by RA No. 10884 (Balanced Housing Development Program Amendments) dated Resettlement Project, consisting of 905 socialized house and lot units, located at Brgy. 93, Bagacay, Tacloban City, Leyte,a project duly registered with the Housing and Land Use Regulatorv Board (HLURB) under Certificate of Registration M July 17,2016, on its income received directly in connection with its sale of socialized house This certifies that CATHOLIC RELIEF SERVICES-USCC, INC. with Taxpayers is exempt from income tax and creditable and License to Sell

house and lot. No. provided that the selling price of said units does not exceed P450,000.001 per

with selling price of not more than P2,000,000.00. exempt from value-added tax (VAT) pursuant to Section 109 (1) (P) of the National Internal exemption from VAT shall only apply to sale of house and lot and other residential dwellings below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is Revenue Code of 1997, as amended.Provided, however, that beginning January 01, 2021, the Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

covered by the tax exemption clause in Section 20 of RA No. 7279. Thus, the documents It is observed, however, that documentary stamp tax (DST) is not one of the taxes

conveying the properties shall be subject to DST imposed under Section 196 of the National

being covered by RA No. 7279, shall be subject to the payment of appropriate taxes. Internal Revenue Code of 1997, as amended, based on the consideration contracted to be paid the same Code, whichever is higher. Likewise, lots/units classified as Economic Housing, not for such realties or on their fair market value determined in accordance with Section 6 (E) of

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 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 of JUL1 6 2020

Meeara

CAESAR R.DULAY

K-1-LMAT Commissioner of Internal Revenue 035854

+ Per HLURB License to Sell No. 033696 dated February 07, 2019. 2 Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963.

CATHOLIC RELIEF SERVICES-USCC, INC. (Anibong Resettlement Project) CTE NO. Date issued

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

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

attributable to the revenues generated from the 905 socialized house and lot units in Anibong Resettlement Project, located at Brgy. 93, Bagacay, Tacloban City, Leyte.

2 The developer shall submit the sworn statement of the buyer that he is eligible as a socialized housing beneficiary under Section 5 (A) of Revenue Regulations (RR) No. 11-97 to the Bureau

of Internal Revenue (BIR) during the [processing of the Certificate Authorizing Registration

(CAR) for the transfer of the title of the socialized housing unit.

3 It is understood that the CAR shall only be issued after it is established upon proper verification

by the Revenue District Officer (RDO) concerned that, considering the rules on valuation of real

property, the actual selling price per sale transaction of the socialized house and lot packages in

this case does not really exceed P450,000.00.

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