BIR Ruling No. 397-2021

REPUBLIC OF THE PHILIPPINES

BUREAU OFJNTERNAL REVENUE DEPARTMENT OF FINANCE

Certificate of Tax Exemption No: Nci- 397-"2aZ1

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

residing in road-right-of-ways, living along river banks, and other danger zones.. Bunawan District,"Davao City, a socialized housing project of the NHA intended for families on its income received directly "in connection with the construction/development of 648 completed housing units of Package 4: Balai-Pagbabago Davao, located in Brgy. Lasang, Housing Authority (NHA), is exempt from project-related income taxes and creditable withholding tax pursuant to Section 20(d)(1) of Republic Act (RA) No. 7279, as amended by RA No. 10884 (Balanced Housing Development Program Amendments) dated July 17, 2016) This certifies that LAK-K BUILDERS CO., an entity engaged by the National

from VAT shall only apply to sale of house and lot and other residentiai dwellings.? added tax (VAT) pursuant to Section 109(1)(P) of the National Internal Revenue Code of 1997 per house and lot package; provided further, that beginning January 1, 2021, the exemption (Tax Code), as amended, provided that the selling price thereof does not exceed P3,199,200.001 Moreover, the delivery of the 648 socialized housing units shall be exempt from value.

gross receipts from the'said socialized housing project. to VAT, even if the said purchases are to be used for the socialized housing project, since VAT is an indirect tax which can be passed on by the seller of the goods/services. It shall be understood that LAK-K BUILDERS CO. must issue VAT-exempt official receipts on its However, the purchases of goods/articles by LAK-K BUILDERS CO. shall be subject

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 OCT 2 5 2021

Commissioner of Internal Revenue CAESAR R. DULAY

K-1 t 046613

1 As adjusted using the 2010 Consumer Price Index values per Revenue Regulations No. 8-2021. 2 Sale of lot oniy, regardless of the price, shall be subject to VAT starting January 1, 2021 pursuant to RA No. 10963.