BIR Ruling No. 264-2020

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No: 30I-LEH-0264-Z020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

family home or dwelling purposes, located at Brgy. Toclong, Kawit Cavite. a project duly 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 No. 2-98, as housing project, Acacia Townhomes, consisting of 956 house and lot units used solely for 25, 2019, for a period of 4 years beginning from November 2019 or actual start of commercial operations/selling, whichever is earlier, but in no case earlier than the date of registration of the withholding tax on its income received directly in connection with its economic and low-cost registered with the Board of Investments (BOI) under Registration No. amended. Taxpayer Identification Number This certifies that THE NEW APEC DEVELOPMENT CORPORATION, with , is exempt from income tax and creditable ) dated October

below; or house and lot and other residential dwellings valued at P3,199,200.00 and below, is that beginning January 1, 2021, the VAT exemption shall only apply to sale of house and lot] VAT-exempt under Section 109(1)(P) of the 1997 Tax Code, as amended. Provided, however. and other residential dwellings with selling price of not more than Two Million Pesos (P2,000,000.00). Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

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 sale of house and lot units in excess of the 956 house and lot units, including those

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. 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_ MAY 2 6 2020

ao

K-1-JAC Commissioner of Internal Revenue CAESAR R.DULAY 035052 Q

Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963.

Acacia Townhomes Page 2 of 2 The New Apec Development Corporation CTE No. Date issued_MAY 2 6 2020 i-LA-0264-2020

1. .The exemption from income and creditable withholding taxes covers only income directly 956 house and lot units, located at Brgy. Toclong,Kawit, Cavite. Such exemption shall not attributable to the revenues generated from the project, Acacia Townhomes consisting of cover revenues from units with selling price exceeding P2,000,000.00. Moreover, the 956 house P1,700,000.00 per house & lot package. and lot units per HLURBLicense to Sell No.034860 shall not be sold for more than OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

2. The enterprise shall observe the following project timetable.

Activity Period

Land acquisition January 2014 to June 2014

from the government/training costs Site preparation and development Secure necessary license/permit/registration September 2017 to December 2019 October 2015 to July 2019

Building/House construction May 2018 to September 2023

Start of Commercial Operations November 2019

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

a. Only income generated from the sale of housing units (Acacia Townhomes - Brgy

Toclong,Kawit,Cavite with selling price not exceeding PhP2.0M and used solely

retail stores, offices! etc. shall be qualified. for family home or dwelling purposes and not for commercial purposes such as leasing.

D 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

Code, as amended, using the electronic system for filing and payment of taxes of the BIR. It

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

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 tax, or if it makes payments to individuals or corporations subject to the withholding taxes as sourceas required under Chapter XIII and Section 57 of the Tax Code of 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

Information Return under oath, stating its gross income and expenses incurred during the close of its accounting period of a Profit and Loss Statement and Balance Sheet with the Annual

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 liability, if any, pursuant 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.

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