BIR Ruling No. 005-2022

BUREAU OE INTERNAL REVENUE REPUBLICOF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No: M0i-LEHO05- 2022

TO ALL WHOM IT MAY CONCERN: CERTIFICATE OF TAX EXEMPTION

used solely for family home or dwelling purposes, located at Brgy. Pagala, Baliuag, Bulacan, a project duly registered with the Board of Investments (BOI) under Certificate of 2019 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 (EO) 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. its income received directly in connection with its economic and low-cost housing project, Lumina Baliuag -- Brgy. Pagala, Baliuag, Bulacan, consisting of 872 house and lot units Registration No. Number (TIN) This certifies that COMMUNITIES BULACAN, INC. with Taxpayer Identification dated June 27, 2019, for a period of 3 years beginning from June is exempt from income tax and creditable withholding tax on

shall only apply to sale of house and lot and other residential dwellings' with selling price of 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 (Tax Code) of 1997, as amended. Provided, however, that beginning January 01, 2021, the VAT exemption not more than P3,199,200.002. 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 registered with the BOI, if any, including those units used for commercial purposes such as Tax Code of 1997, as amended. However, the sale of house and lot units in excess of the 872 house and lot units

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

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

Issued this day of JAN 1 0 2022

1aesamy

K-1-G PS Commissioner of Internal Revenue CAESAR R.DULAY 148451

2 As adjusted using the 2010 Consumer Price Index values pursuant to RR No. 8-2021 dated June 11, 2021 Sale of lot orlyregardess of the price,hall be subject toVAT starting January 1,2021 pursuant to RA No.10963.

Lumina Baliuag page 2 of 2 Date issued JAN 1 g 2U22 CTENO.DCi-LEH-

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1. The exemption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the project, Lumina Baliuag -- Brgy. Pagala, Baliuag, with selling price exceeding P2,000,000.00. Moreover, the 872 house and lot units covered by Bulacan, consisting of 872 house and lot units used solely for family home or dwelling purposes located at Brgy. Pagala, Baliuag, Bulacan. Such exemption shall not cover revenues from units License to Sell No. shall not be sold for more than P1,700,000.00 per house and lot.

2.The enterprise shall observe the following project timetable:

Start of Commercial Operations Land Acquisition Secure necessary government/training costs Site preparation and development Building/House construction license/permit/registration from the Activity November 2017 to June 2021 May 2017 to February 202] March 2017 to May 2019 December 2016 June 2019 Period

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 hous'ng project.

4.The Company's entitlement to ITH for its BOI-registered housi ng project is subject to. the compliance with the provisions of the Specific Terms and Condition of its BOI Registration.

5.Pursuant to Section 4 of Republic Act (RA) No. 107083, the Comt any is required to file its tax returns and pay its tax liabilities, on or before the deadline as provide under the Tax Code of 1997, BOI a complete annual tax incentives report of its income-based t x incentives, VAT and duty 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. as amended, using the electronic system for filing and payment of tax is of the BIR. It shall file with exemptions, deductions, credits or exclusions from the tax base, as m.ay be provided under EO No.

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 Xill and Section 57 of the Tax Code of 1997, as amended, and implemented by RR No.2-98,as amended.

7.The Company is required to file on or before the 15th day of the fourth month following the close year. 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

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 Transparencyin the Management and Accounting of Tax Incentives Administere Promotion Agencies.