BIR Ruling No. 652-2017

BUREAU OF INTERNAL REVENUE REPUBI IC OF .'HE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No: * >X}T

CERTIFICATE QF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

Order No. 226, otherwise known as the "Omnibus Investments Code of !987" and Sec.2.57.5 case earlier than the date of registration of the project with the BOI, pursuant to Executive (B)(2) of RR No. 2-98, as amended. Bacoor, Cavite, a project duly registered with the Board of Investments (BOl) under March 2017 or actual start of commercial operations/selfing, whichever is eartier. but in no Registration No. received directiy in connection with its economic and low-cost housing project. Lessandra Bacoor 9 - Salinas, Bacoor, Cavite consisting of 224 housing units located at Salinas. This certifies that HOUSEHOLD DEVELOPMENT CORPORATION with TIN is exempt from income tax and creditable withholding tax on its income dated March 30. 2017, for a period of 3 years beginning from

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 1997 Tax Code, as amended. Moreover, the sale by the Company of residentiai lot valued at P1,919.500.00 and

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 subiect to the compliance with the provisions of

documents as represcnted 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 This Certificate of Tax Exemption is being issued on the basis of the facts and day of DEC 3 9 2017

Me AOA

K- Commissioner of Internal Revenue CAESAR R. DULAY :'011986

Page 2 of 2 House hold Development (Corporation. Date issued - (TE NO 62-2017 19-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

I The exemption from income and creditable withholding laxes covers only income directly

exceeding P3,000,000.00. Moreover. the 224 housing units covered by License to Seli No. attributable to the revenues generated from the project, Lessandra Bacoor 9 - Brgy. Salinas, Bacoor, Cavite consisting of 224 housing units. located at Brgy. Salinas, Bacoor. Cavite. Such exemption shall not cover revenues from units with selling price shall not be sold for more than Pl.700,000.00 per house & lot. 2. The Company is obligated to construct and sell 224 housing units based on the following schedules/sales revenues:

2 Year (No. of Units) Volume 1 89 Value(Php 000)

Total 224 58

3. In the computation of the project's tT'H. interest income from in-house financing shall not be considered as part of the revenues generated from the registered housing project.

T'he Company's entitlement to 1TH for its BOI-registered housing project is subject to the compliance with the provisions of the Specific Terms and Conditions of its BOI Registration.

S. Pursuant to Section 4 of Republic Act (RA) No. 10708', the Company is required to file its Rules and Regulations and Joint Memorandum Circular No. l-2016 dated September 1, 2016. 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 payinent of taxes of the BIR. It VAT and duty exemptions, deductions. credits or exclusions from the tax base. as may be provided under E.O. 226, within the periods prescribed under R.A. 10708's Implementing shatt file with BOl a complete annual tax incentives report of its income-based tax incentives.

6 The Company shall be constituted as a withhoiding 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 XIII and Section 57 of the Tax Code of :997. 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 foflowing the close of its accounting period of a Profit and Loss Statement and Balance Sheet with the Annual Inforination Return under oath. stating its gross income and expenses incurred during the taxabte 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 Code of 1997. as amended. exemption or tax inccntives and its tax liability. if any, pursuant to Section 235 of the Tax

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