BIR Ruling No. 421-2019

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OFINTERNAL REVENUE

Quszon Ciry

CERTIFICATE OF TAX EXEMPTION

TOALLWHOMITMAYCONCERN

withhoiding tax (CwT pursuant to Section 20 (dl) of Republic Act (RA) No.7279,as Identification Number (TIN) amenied by RA No.10884 (Balanced Hoasing Development Program Amendments) dated This cerrifies that KENRICH DEVELOPMENT CORPORATION with Taxpayers is exempt from income tax and creditable

July 17,2016,on its income received directly in connection with irs sale of socialized house and lot units to oualified beneficiaries in Villa Lara Subdivisionconsisting of 316 socialized house ane Iot ni located at JubayLhe P400.000.00per house ang lot and P160,000.00for lotoniy. License to Seil No. and Land Os Fulatorv BoardFu py . provided that the selling price of said units does not exceed project duly registered with the Housing Zrrificate of Registration No.

Moreover, the saie by the Company of residential iot valued at P1,919.500.00 and belew, or house and lot and other residential dwellings valued at P3,199,200.00 and beiow,is exempt from value-added tax (VAT) pursuant to Section 109 P) of the National Internal Revenue Code of 1997,as amended.Provided,however,that beginning January 01,2021,the

with selling price of not more han P2.000.000.00. exemption from VAT shall only apply to sale of house and lot and other residential dwellings

It is observed, however, that doeumentary stamp tax (DST) is not one of the taxes covered y the tax exemption clause in Section 20 of RA No.7279.Thus,the documents conveying the properties shall be subiect to DST imposed under Section 196 of the National internal Revenus Code of 1997.as amended. based on the consideration contracted to be paid for such,realties or on their fair market value determined in accordance with Section 6 (E) of

being covered by RA No. 7279. shail be subject to the payment of appropriate taxes. the same Code.whichever is higher. Likewise,lots/units classified as Economic Housing,not

The grant of tax exemption herein is subjeet to the compliance with the provisions of applicabie BIR ruies and regularions and the Terms and Conditions stated hereof. The Compariy is liable. however,for other applicable taxes not diseussed above.

that the facts are different, then this Certificate shall be considered null and void. documents as represented and submitted. However,if upon investigation, the BIR ascertains This Cerrificate of Tax Exemption is being issued on the basis of the facts and

Issued this day of JUL 2 9_2019

AA Dec

K-1-LMAT Commissioner of Internal Revenui CAESARR.DULAY E 027255

Sale of lot only. regardiess of the price, shall be subject to VAT starting January 01. 2021 pursuant to RA No. 10963. Per HLURBLicenseIo SellNo dated August 25.2011