BIR Ruling No. 431-2020

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No:

PSH-0431-2020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

creditable withholding tax (CWT) pursuant to Section 20 (d) (1) of Republic Act (RA) No. dated July 17, 2016, on its income received directly in connection with its sale of socialized Taxpayers Identification Number (TIN) house and lot units for residential and dwelling purposes to qualified beneficiaries in Paseo Heneral Dos Subdivision, consisting of 247 house and lot units, located at Brgy. Pasong Kawayan II (formerly Buenavista I), General Trias, Cavite, a project duly registered with the Housing and Land Use Regulatory Board (HLURB) under Certificate of Registration No. 7279, as amended by RA No. 10884 (Balanced Housing Development Program Amendments) exceed and License to Sell No. This certifies that SUMMERHILLS HOME DEVELOPMENT CORP.with per house and lot. provided that the selling price of said units does not is exempt from income tax and

below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is exempt from value-added tax (VAT) pursuant to Section 109 (1) (P) of the National Internal Revenue Code of 1997, as amended.Provided, however, that beginning January 01,2021, the exemption from VAT shall only apply to sale of house and lot and other residential dwellings with selling price of not more than P2,000,000.00. 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 the same Code, whichever is higher. Likewise, lots/units classified as Economic Housing, not conveying the properties shall be subject to DST imposed under Section 196 of the National Internal Revenue Code of 1997, as amended, based on the consideration contracted to be paid for such realties or on their fair market value determined in accordance with Section 6 (E) of being covered by RA No. 7279, shall be subject to the payment of appropriate taxes. It is observed, however, that documentary stamp tax (DST) is not one of the taxes

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.

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 ofUL3 0 2020

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Commissioner of Internal Revenue CAESAR R.DULAY

K-1-LMAT 036053 O

2Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963. Per HLURB License to Sell No. dated May 16, 2016.

SUMMERHILLS HOME DEVELOPMENT CORP (Paseo Heneral Dos Subdivision) Date issued: CTE No.: PSH-0431-2020 130 2020

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

l. The exemption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the 247 socialized house and iot units in Paseo Heneral Dos Subdivision, located at Brgy. Pasong Kawayan II (formerly Buenavista I), General Trias, Cavite.

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

this case does not really exceed 450,000.00. 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

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