BIR Ruling No. 598-2017

REPUBLICOF TH" PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMLINT OF FINANCE Quezon City

Certifica ofTax Exemption No:

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

(RR) No. 2-98, as amended. Number (TIN) its income received directly in connection with its economic and low-cost housing project, February 17, 2017. for a period of 4 years beginning from February 2017 or actuat 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 1987" and Section 2.57.5 (B) (2) of Revenue Regulations Camella Solamente - Barangay Sorosoro Karsada, Batangas City, Batangas, consisting of 461 housing units located at Barangay Sorosoro Karsada, Batangas City, Batangas, a project duly registered with the Board of Investments (BOI) under Registration No. This certifies that COMMUNITIES BATANGAS, INC., with Tax Identification : is exempt from income tax and creditable withholding tax on dated

below, or house ana lot and other residential dwellings valued at P3. 199,200.00 and below, is VAT-exempt under Section 109(!)(P) of the National Internal Revenue Code of 1997, as amended. Moreover, the sale by the Company of residential lot valued at Pl.919,500.00 and

of appropriate taxes under the National Internal Revenue Code of 1997. as amended. However, the sale of units in excess of 461 housing units shall be subject to the payment

applicable BIR rules and regulations and the Terms and Conditions stated at the back hereof. The Company is liable. however, for all other applicable taxes not discussed above. The grant of tax exemption herein is subject to the compliance with the provisions of

that the facts are different, then this Certificate shall be considered null and void. documents as represented and submitted. However, if upon investigation, the BIR ascertains This Certificate of Tax Exemption is being issued on the basis of the facts and

Issued this day of OEC 1 4 2017

10L80M

K- Commissioner of Internal Revenue CAESAR R. DULAY 011713

COMMUNITIES BATANGAS. INC (Camelta Solamente) (TE NO. Date issued_12-14-20 17 598-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITONS

1 The exemption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the project, Camella Solamente - Barangay Sorosoro Karsada, Batangas City, Batangas, consisting of 461 housing units. located at revenues from units with selling price exceeding P3.000,000.00. Moreover. the 127 housing Barangay Sorosoro Karsada, Batangas City, Batangas. units covered by License to Sell No. house & lot. shall not be soid for more than Pl.700.o00.00 per Such exemption shall not cover

2 The Company is obtigated to construct and sell 461 housing units based on the following

schedules/sales revenues:

Year Total 4 2 3 (No. of Units) Volume 41 38 152 51 (Php '000) Value

3 in the computation of the project's I'TH, 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 returns and pay its tax liabilities, on or before the deadline as provided under the Nationai based tax incentives. VA'T and duty exemptions, deductions, credits or exclusions from the tax base, as may be provided under E.0. 226, within the periods prescribed under RA No. 10708's Impiementing Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated Internal Revenue Code of : 997, as amended, using the eiectronic system for filing and payment of taxes of the BIR. It shall file with BOI a complete annual tax incentives report of its income- September I,2016.

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 subjeci to the withholding taxes as source as required under Chapter X1H and Section 57 of the National Internal Revenue Code of 1997, as amended, and implemented hy Revenue Regulations (RR) No. 2-98. as amended.

I The Company is required to fite on or before the 15th 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 Returm 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 ascertaining whether it is complying with the conditions under which it has been granted tax Internal Revenue Code of !997, as amended. periodic examination by revenue enforcement officers of this Bureau for the purpose of exemption or tax incentives and its tax liability. if any, pursuant to Section 235 of the National

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

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