BIR Ruling No. 482-2021

REPUBLIC OF THE PHILn'PINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Qi:iezon City CErtificjjte of Tax Exemption No: PSH- 4 B 2 - 2 0 2 1 CEFITIFICATE O'F TAX EXEMPTION TO ALL WHOM IT MAY CONCERN: This certifies that SERVEQUEST PI UPERTIES CORPORATION with Taxpayer's Identification Number 0 is exempt from ncome tax and creditable ^vithholding tax(CWT)pursuant to Section 20 (d)(1) of Republic Act (R-^) No. 7279, as amended by Fcy\ No. 10884 (Balanced Housing DevelopmentProgram Amendments)dated July 17,2016,on its income received directly in connection with its sale of socialized house and lot units for lesidential and dv/eiiing puqooses to qualified beneficiaries in Cabanatuan East,consisting of318 house and lot units,located at Brgy. Kalikid Sur,Cabanatuan City,Nueva Ecija, a project duly registered jwith the Department of Human Settlements and Urban Development (DHSUD)under Certificate of Registration No. and License to Sell No. , provided that the selling price ofsaid units does not exceed P530,000 for BIk. 49 Lots 1-54; Elk. 50 Lots 1-54; Blk. 61 Lots 1-54; andBlk.62Lots7-]5,andP580,000fo' Blk. 51 Lots 2,^-,6, 8, 10, 12, 14, 16, 18,20, 22,24,26; Blk. 53 Lot 16; Blk. 58 Lots 23-40; and Blk.60 Lc ts 1-42 per house and lot package.' Moreover,the sale by the Company(f residential lot > alued at P1,919,500.00 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(IKP)ofthe"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 ofnot more than P3,199,200.00.^ It is observed, however,that documentaiy stamp tax(DST)is not one ofthe taxes covered by the tax exemption clause in Section 20 of RA No.'279. Thus, the documents conveying the properties shall be subject to DST imposed under Section 196 of the National irtemal Revenue Code of 1997, as amended, based on the consideration contracted to be p�.id for such realties or on their fair market value determined in accordance with Section 6 (E) of the same Code, whichever is higher. Likewise, lots/units classified as Economic Housing,not being covered by RA No.7279,shall be subjectto the paymentofappropriate taxes. The grant oftax exemption herein is subject to the compliance with the provisions ofapplicable BIR rules and regulations and the Terms and Ctmditions stated tit the hack hereof. The Company is liable, however,for other applic�ihle taxes not discussed above. This Certificate of Tax Exemption ,s being issued c n the basis of the facts and documents as represented and submitted. However, if upon investigation, tie BIR ascertains that the facts are different, then this Certificate shall be considered null aid void. Issued this day of K1-FR-21-I048 CAES^kR R.DULAV Commissioner of Internal Revenue 0479 67 'Per HLURB License to Sell No. fated August J4,3019. ^ Sale oflot only, regardless of the pnce,shall be subject to V.\T starting January 01,203' pursuant to RANo.10963. ^ As adjusted using the 2010 Consumer Price Index \aU.es per Revenue Regi laiions No.8-2021 dated June 11.2021.