BIR Ruling No. 657-2017

BUREAU OF INTEBNGLREVENUE REPUBLICC THE PHILIPPINES DEPARTMENT OF FINANCE

Certificate of Tax Exemption No: 657-2017

CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN:

Investments Code of 1987" and Sec. 2.57.5 (B)(2) of Revenue Regulations No. 2-98. as years beginning from September 2014 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 {E.O.) No. 226, otherwise known as the "Omnibus amended. Investments (BOI) under Registration No. Brgy. 831, Penafrancia St., Paco, Manila, a project duly registered with the Board of withholding tax on its income received directly in connection with its project, Peninsula with Tax Identification Number Garden Midtown Homes -- Mandarin Tower, consisting of 164 residential units located at This certifies that HORIZON LAND PROPERTY DEV'T. CORP. (the Company). is exempt from income tax and creditable dated February 12, 2014 for a period of 3

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. The Company is liable, however, to all other applicable taxes not enumerated above. applicable BIR rules and regulations and the Terms and Conditions stated at the back hercof. and below, is VAT-exempt under Section 109(1)(P) of the 1997 Tax Code. as amended. Issued this _- day of _-DEC 19 2017 This Certificate of Tax Exemption is being issued on the basis of the facts and The grant of tax exemption herein is subject to the compliance with the provisions of Moreover, any sale by the Company of residential dwcllings valued at P3,199,200.00

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K-1-RFR Commissioner of Internal Revenue CAESAR R. DULAY 011929

Horizon Land Property Devt. Corp. Page 2 of 2 CTE No. Date issued 12-19-2017 657-2017

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

1. The exemption from income and creditable withholding taxes covers only income directly

attributabie to the revenues generated from the project, Peninsula Garden Midtown

Homes -Mandarin Tower,consisting of 164 units,located at Brgy.831,Pefiafrancia

St., Paco,Manila. Such exemption shall not cover revenues from units with selling price

exceeding P3.000,000.00.

2 The Company is obligated to construct and sell 164 low-cost mass housing units based on the following schedules/sales revenues:

Year (No. of Units) Volume Value (PhP)

55

Total 2 3 164 35 54

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 (R.A.No. 10708, 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 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 provided under E.O.No.226,within thirty (30days from the deadline for filing of tax returns and payment of taxes.

6. 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 XlIl and Section 57 of the Tax Code of 1997. as amended and implemented by Revenue Regulations (R.R.) No.2-98, as amended.

The Company is required to file on or before the 1 5th day of the fourth month following the close of its accounting period of a Profit and Loss Statement and Balance Sheet with the Annual Information Return under oath, stating its gross income and expenses incurred during the taxable year.

8 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

ascertaining whether it is complying with the conditions under 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

ant Promntion Aaencies.