BIR Ruling No. 520-2020

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No:

BOI -LEH - 0529-2u2a

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

Identification Number (TIN) the date of registration of the project with the BOI, pursuant to Executive Order (EO) No. 226, City, a project duly registered with the Board of Investments (BOI) under Registration No. or-actual start of commercial operations/selling, whichever is earlier, but in no case earlier than withholding tax on its income received airectly in connection with its low-cost mass housing project (vertical), Fern @ Grass Residences Tower 41 Misamis and Nueva Ecija Streets, Brgy. Sto. Cristo, Quezon City, consisting of 1,849 housing units used solely for family home or dwelling purposes, located at Misamis and Nueva Ecija Streets, Brgy. Sto. Cristo, Quezon 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. This certifies that SM DEVELOPMENT CORPORATION, with Taxpayers dated March 5, 2014, for a period of three (3 years beginning from Deceimber 2014 is exempt from income tax.and creditable

exempt from value-added tax (VAT) pursuant to Section 109 (1) (P) of the National Internal exemption from VAT shall only apply to sale of house and lot and other residential dwellings2 below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is Revenue Code of 1997, as amended.' Provided, however, that beginning January 01, 2021, the with selling price of not.more than P2,000,000.00. Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

leasing, retail stores, offices, etc., shall be subject to the payment of appropriate taxes under the National Internal Revenue Code of'1997, as amended. the BOI. (per License to Sell No. as well as the: However, the sale of housing units in excess of the parking slots, including those units used for commercial purposes such as dated May 15,2015,the excess is 108 housing units), housing units registered with

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

docuiments as represented and submitted. However, if upon investigation, the BIR ascertains that the facts are different, then thiszCertificate 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 SEP 1 5 ZuaU

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K Commissioner of Internal Revenue CAESARR.DULAY H 036702 A

Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to Republic Act (RA) letter issued by Executive Director Efren V.Leano dated July 2, 2015. No. The project name was amended from Grass Residences Tower 4 to Fern @ Grass Residences Tower 4 pursuant to the