BIR Ruling No. 672-2017

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMEN'T OF FINANCE Quezon City

Certificate of Tax Exemption No: 372-2017

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

its economic and iow-cost housing project, Liora Homes Phase 2- Brgy. Santiago, General dated September 9, 2016, for a period of 3 years beginning from September 2016 or actual start of commercial operations/selling. whichever is earlier, but in no case earlier than the date of registration of the project with the BOI. pursuant to Executive Order No. 226, otherwise known as the "Omnibus Investments Code of :987" and Section 2.57.5 (B)(2) of Revenue INCORPORATED, with Tax Identification Number income tax and creditable withholding tax on its income received directly in connection with Trias, Cavite. consisting of 544 units located at Brgy. Santiago, General Trias. Cavite. a projcct duly registered with the Board of Investments (BOI) under Registration No. Regulations No. 2-98, as amended. This certifiesthatCITIHOMES BULDERS AND DEVELOPMENT is exempt from

below, or house and lot and other residential dwellings valued at P3,199,200.00 and beiow, is VAT-exempt under Section 109(1)(P) of the 1997 Tax Code, as amended. Moreover, the sale by the Company of residential lots valued at P1,919,500.00 and

be subject to the regular taxes that may be applicable. The sale, however, of housing units in excess of the 544 units registered with BOI shall

The Company is liable. however, for all other applicable taxes not discussed above. applicabie BIR rules and regulations and the Terms and Conditions stated at the back hercof. 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. DEC 2 0.2017

K- Commissioner of Internal Revenue CAESAR R. DULAY 011985

Citihotnes Builders and Development. Inc. Page 2 of 2 CTE No. Date issued .12-20-2017 672-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1 The exemption from income and creditable withholding taxes covers only income directly Santiago, General Trias, Cavite, consisting of 544 units located at Brgy. Santiago. exceeding P3.000,000.00. attributable to the revenues generated from the project, Liora Homes Phase 2- Brgy. General Trias. Cavite. Such exemption shall not cover revenues from units with selling price

The Company is obligated to construct and sell 544 housing units based on the following schedules/sales revenues:

Y ear Total 2 3 (No. of Units) Volume 544 350 100 94 Valuc(Php '000)

3 In the computation of the project's ITH. interest income from in-house financing shall not be

considered as part of the revenues generated from the registered housing project.

4 The Company's entitlement to ITH for its BOI-registered housing project is subject to the compliance with the provisions of the Specific Terms and Conditions of its BOI Registration.

5 Pursuant to Section 4 of Republic Act (RA) No. 10708'. the Company is required to file its tax Rules and Reguiations and Joint Memorandum Circular No. 1-2016 dated September 1. 2016 returns and pay its tax liabilities. on or before the deadline as provided under the 1997 Tax provided under E.O. 226, within the periods prescribed under R.A. 10708's Implementing Code, as amended, using the electronic system for filing and payment of taxes of the BIR. It 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

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 source as required under Chapter XHI and Section 57 of the Tax Code of 1997, as amended and implemented by Revenue Regulations (RR) No. 2-98. as amended. The Company is required to file on or before the Isth day of the fourth month following the ciose of its accounting period of a Profit and Loss Statement and Balance Sheet with the Annua! taxable year. Information Return under oath. stating its gross income and expenses incurred during the

: & periodic*examination by revenue enforcement officers of this Bureau for the purpose of 8. Finally. the Company's books of accounts and other pertinent records shall be subject to ascertaining whether it is complying with the conditions undcr which it has been granted tax exemption or tax incentives and its tax liability. if any. pursuant to Section 235 of the Tax Code of 1997, as amended.

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