BIR Ruling No. 382-2022

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Certificate of Tax Exemption No:

BOI-LEH - 3 8 2 - 2 0 2 Z

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

This certifies that LYNVILLE LAND DEVELOPMENT CORP.1 is exempt from income tax and creditable withholding tax on its income received directly in connection with its economic and tow-cost housing project, Lynville Homes San Marcos Phase 1, consisting of 397 house and lot units used solely for family home or dwelling purposes, located at Brgy. San Marcos, San Pablo City, Laguna, a project duly reoistered with the Board of Investments selling, whichever is earlier, but in no case earlier than the date of registration of the project Investments Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98. (BOl) under Certificate of Registration'" (COR) No. period of four (4) years beginning from March 2022 or actual start of commercial operations/ with the BOI, pursuant to Executive Order (EO) No. 226, otherwise known as the "Omnibus ' dated March 18, 2022, for a

as amended.

below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

01, 2021, the exemption "from VAT shall only apply to'sale of house and lot and other residential dwellings2 with selling price of not more than P3,199,200.00.3 exempt from value-added tax (VAT) pursuant to Section 109 (1) (P) of the National Internal Revenue Code (Tax Code) of 1997, as amended. Provided, however, that beginning January

the Tax Code. as amended. registered with the BOI, if any, including those units used for commercial purposes such as leasing, retail stores, offices, etc., shall be subject to the payment of appropriate taxes under However, the sale of house and lot units in excess of the 397 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 SEP 0 8 2922

K-1/2097a Commissioner of Internal Revenue LILIA CATRIS GUILLERMO F? 001273

3 As adjusted using the 2010 Consumer Price Index values per RR No. 8-2021 dated June 11. 2021. : Formerly: Lynville Realty & Deveiopment Corporation 2 Sale of iot only, regardless of the price, shall be subject to VAT starting January 01. 2021 pursuant to RA No. 10963.

(Lynville Homes San Marcos Phase 1) L YNVILLE LAND DEVELOPMENT CORP. Date issued: CTE No.: BOI - LEH 38Z.2922 1.8. 2027

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1. The exemption from income tax and creditable withholding tax covers oniy income directly attributable to the revenues generated from the project, Lynville Homes San Marcos Phase i consisting of 397 house and lot units used solely for family home or dwelling purposes, located at Brgy. San Marcos, San Pablo City, Laguna. Such exemption shall not cover revenues from units with selling price exceeding P2,000,000.00.

2. The Company shall comply with the following milestones and total investment capital:

Milestone Investment Cost (in PhP) and Schedule Site Preparation and Development Building/House Construction Start of Commercial Operations September 2021 December 2024 December 2020 December 2023 March 2022

Total Project Cost

3. In the computation of the project's ITH, interest income from in-house financing shall not be considered as revenues generated from the registered activity.

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. 107084, the Company is required to file its tax returns and.pay its tax liabilities, on or before the deadline as provided under the Tax Code of 1997 Joint Memorandum Circular No. l -2016 dated September 1, 2016. as amended, using the electronic system for filing and payment of taxes of the BIR. It shall file with exemptions, deductions, credits or exclusions from the tax base, as may be provided under EO No. 226, within the periods prescribed under RA No. 10708's Implementing Rules and Regulations and BOI a complete annual tax incentives report of its income-based tax incentives, VAT and duty

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 XIII 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 of Return under oath, stating its gross income and expenses incurred during the taxable year. its accounting period of a Profit and Loss Statement and Balance Sheet with the Annual Information

8. Finally, the Company's books of accounts and other pertinent records shall be subject to periodic and its tax liability, if any, pursuant to Section 235 of the Tax Code of 1997, as amended. it is complying with the conditions under which it has been granted tax exemption or tax incentives examination by revenue enforcement officers of this Bureau for the purpose of ascertaining whether

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

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