BIR Ruling No. 269-2020

DD BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No:

BOI - LEH - 3-2020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

dwelling purposes, located at Brgy. Sta. Teresita, Sto. Tomas, Batangas, a proiect duly September 20, 2019, for a period of three (3) years beginning from September 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 creditable withholding tax on its income received directly in connection with its economic and low-cost housing project, Primerarosa Residences Phase 2-- Brgy. Sta. Teresita, Sto. Tomas, Batangas, consisting of 279 house and lot units used solely for family home or registered with the Board of Investments (BOI) under Registration No. : Revenue Regulations (RR) No. 2-98, as amended. Taxpayers Identification Number (TIN) This certifies that SUMMERHILLS HOME DEVELOPMENT CORP., with , is exempt from income tax and dated

below, or house and lot and other residentiai dwellings valued at P3,199,200.00 and below, is exempt from value-added tax (VAT) pursuant to Section 109 (1) (P) of the National Internal Revenue Code of 1997, as amended. Provided, however, that beginning January 01, 2021, the exemption from VAT shall only apply to sale of house and lot and other residential dwellings 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

the National Internal Revenue Code of 1997, as amended. leasing, retail stores, offices, etc., shall be subject to the payment of appropriate taxes under registered with the BOI, if any, including those units used for commercial purposes such as However, the sale of House and lot units in excess of the 279 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 MAY 2 6 2020

Maoee

LK-1-LMAT Commissioner of Internal Revenue CAESAR R.DULAY 03509.3 O

Sale of lot only,regardlss of the price, shall be subject to VAT starting January O1, 2021 pursuant to Republic Act (RA) No. 10963.

SUMMERHILLS HOME DEVELOPMENT CORP. (Primerarosa Residences Phase 2) Date issued: CTE No.: BOL-LEH-0 2.6 9 MAY 2 6 2020

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

I. The exemption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the project, Primerarosa Residences Phase 2 -- Brgy. Sta. Teresita, Sto. Tomas, Batangas, consisting of 279 house and lot units used solely for family home or dwelling purposes, located at Brgy. Sta. Teresita, Sto. Tomas, Batangas. Such exemption shall not cover revenues from units with selling price exceeding P2,000,000.00. Moreover, the 279 house and lot units covered by License to Sell No. 034836 shall not be sold for more than

P1,700,000.00 per house and lot.

2.In the computation of the project's ITH, the following shall apply:

a. Only income generated from the sale of housing units (Primerarosa Residences Phase 2 Brgy. Sta. Teresita, Sto. Tomas, Batangas) with selling price not exceeding Php2.0M and

used solely for family home or dwelling purposes and not for commercial purposes such as leasing, retail stores, offices, etc. shall be qualified.

b. Interest income from in-house financing shall not be considered as revenues generated

from the registered activity.

3. 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.

4. Pursuant to Section 4 of Republic Act (RA) No. 107082, the Company is required to file its tax

returns and pay its tax liabilities, on'or before the deadline as provided under the National Internal Revenue Code of 1997, as amended, using the electronic system for filing and payment of taxes of the BIR.It shall file with BOI a complete annual tax incentives report of its income-based tax incentives, 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 RA No. 10708's Implementing Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1, 2016.

5. 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 con pensation withholding tax,

or if it makes payments to individuals or corporations subject to the withholding taxes as source as

requiredunder Chapter XIII and Section: 57 of the National Internal Revenue Code of 1997, as

amended, and implemented by Revenue Regulations (RR) No. 2-98, as amended.

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

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

year.

7.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 National Internal Revenue Code of 1997,

as amended.

An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Administered by Investment

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