BIR Ruling No. 575-2019

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE : BUREAU OF INTERNAL REVENUE Quezon City

Certificate of Tax Exemption No: 0.5.75 -2019 I

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

its income received directly in connection with its economic and low-cost housing project. used solely for family home or dwelling purposes, located at Brgy. Lagundi, Plaridel, Bulacan. Provence Phase 9- Brgy. Lagundi, Piaridel, Bulacan consisting of 249 house and lot units Number(TIN) This certifies that COMMUNITIES BULACAN, INC., with Taxpayers Identification :s exempt from income tax and creditable withholding tax on

a nroject duly registered with the Board of Investments (BOI) under Registration No. of commercial operations/selling, whichever is earlier, but in no case earlier than the date of dated March 28. 2018, for a period of 3 years beginning from March 2018 or actual start

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 (RR) No. 2-98. as amended.

amended. Provided, however, that beginning January 01, 2021, the VAT exemption shall only below. or house and lot and other residential dwellings valued at P3,199,200.00 and below, is VAT-exempt under Section 109(1)(P) of the National Internal Revenue Code of 1997. as Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

apply to sale of house and lot and other residential dwellings' with selling price of not more than P2.000.000.00.

However. the sale of house and lot units in excess of the 249 house and lot units registered with the BOI, (per HLURB License to Sell Nos. 105 house and lot ), including those house and lot units used for commercial purposes, shall be . the excess is

subject to the payment of appropriate taxes under the National Internal Revenue Code of 1997. as amended.

The grant of tax exemption herein is subject to the compliance with the provisions of 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.

This Certificate of Tax Exemption is being issued on the basis of the facts and 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.

Issued this day of OCI 0 9 2019.

araMy

Commissioner of Internal Revenue CAESAR R. DULAY

K-1-GPS 029465

1 Sale of Jot only. regardless of the price. shall be subject to VAT starting January 01. 2021 pursuant to RA No.

- Per HLURB License to Sell No. NO. 10963 201 lots with units are authorized for sale 1 53 iots with units are authorized for sale. For HLURB License to Sell

(page 2 of 2} COMMJNITIES 3ULACAN, iNC. (PROVENCE PHASE 9) Date issued CTe NO. 0575 -2013 0CT_0.9 2019_

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

I. The exemption from income and creditable withholding taxes covers only income directly Such exemption shall not cover revenues from units with selling price exceeding P2,000,000.00. attributable to the revenues generated from the Provence Phase 9- Brgy. Lagundi, Plaridei. Bulacan, consisting of 249 house and lot units located at Brgy. Lagundi, Piaridel, Bulacan. Moreover, the 153 house and lot units covered by License to Sell No. more than P1.700,000.00 per house and lot package. hall not be sold for

2.The Enterprise shall observe the following project timetable.

Start of Commercial Operations Site preparation and development Land Acquisition from the government/ training costs Building' House construction Secure necessary license/ permit/ registration Activity September 2016 to August 2017 October 2016 to January 2020 April 2017 to June 2020 March 2018 May 20I6 Schedule

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.

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. 107083, the Company is required to file its tax Revenue Code of 1997, as amended, using the electronic system for filing and payment of taxes of returns and pay its tax liabilities, on or before the deadline as provided under the National Internal 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 froin the tax base, as may be provided under E.O. 226, within the periods prescribed under RA No. 10708's Implementing Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1, 2016.

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 XII and Section 57 of the National Internal Revenue Code of 1997, as amended. and implemented by Revenue Regulations (RR) No. 2-98, as amended.

7. The Company is required to file on or before the 15t 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 experises incurred during the taxable year.

-8. Finally. the Company's books of accounts and other pertinent records shall be subject to periodic 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 National Internal Revenue Code of 1997. examination by revenue enforcement officers of this Bureau for the purpose of ascertaining whether

as amended.

An Act Enhancing Transparency in the Management and Accounting of Tax Incenti es Administere Investment

Promotion Agencies