BIR Ruling No. 629-2020

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

BO1-LEH-0629-2020 Certificate of Tax Exemption No.

CERTIFICATE OF TAX EXEMPTION

TO WHOM IT MAY CONCERN:

for family home or dwelling purposes located at Brgy. Panungyanan, General Trias, Cavite, a registration of the project with the BOI, pursuant to Executive Order No. 226, otherwise known creditable withholding tax on its income received directly in connection with its economic and dated March 4, 2020, for a period of 3 years beginning from March 2020 or actual start of as the Omnibus Investments Code of 1987 and Section 2.57.5(B)(2) of Revenue Regulations No. 2-98, as amended. Taxpayer's Identification Number (TIN) low-cost housing project, Sabella Phase 2, consisting of 263 house and lot units used solely project duly registered with the Board of Investments (BOD) under Registration No. commercial operation/selling, whichever is earlier, but in no case earlier that the date of This certifies that CITIHOMES BUILDER AND DEVELOPMENT INC. with is exempt from income tax and

and other residential dwellingst with selling price of not more than Two Million Pesos below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is (P2,000,000.00). VAT-exempt under Section 109(1)(P) of the 1997 Tax Code, as amended. Provided, however, that beginning January 1, 2021, the VAT exemption shall only apply to sale of house and lot Moreover, the sale by the Company of residential lots valued at P1,919,500.00 and

and lot units), including those units used for commercial purposes such as leasing, retail stores, offices, etc., shall be subject to the applicable taxes under the 1997 Tax Code, as amended. registered with the BOI, if any (per HLURB License to Sell No. The sale, however, of house and lot units in excess of the 263 house and lot units , the excess is 168 house

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

are different, then this Certificate shall be considered null and void. as represented and submitted. However, if upon investigation, the BIR ascertains that the facts This Certificate of Tax Exemption is being issued on the basis of the facts and documents Issued this day of NOV 0 5 2020

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K -1/19-1935 Commissionesof Inferra Revere CAESAR R. DULAY

1 Sale of lot only, regardless of the price, shall be subject to VAT starting January 1, 2021 pursuant to RA No. 10963.

CITIHOMES BUILDER AND DEVELOPMENT INC./ Sabe|Ia P2 Page 2 of 2 Date issued NOV ( 5 2020 CTE No.BOILEH- 0 6 2 9 - Z U 2

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

than P1,700,000.00 per house and lot. The exemption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the project, Sabella Phase 2, consisting of 263 house and lot units used solely for family home or dwelling purposes located at Brgy. Panungyanan, General Trias, Cavite. Such exemption shall not cover revenues from units with selling price exceeding P2,000,000.00.Moreover, the 263 house and lots units covered by License to Sell No. shall not be sold for more

The company shall observe the following project timetable.

Start of commercial operations Site preparation and development Secure necessary license/permit/registration Building/house construction Land Acquisition from the government/training costs Activity March 2020 -- December 2022 March 2016- February 2018 January 2018 - June 2021 January 2020 March 2016 Schedule

In the computation of the project's ITH, interest income from in-house financing shall 3

not be considered as part of the revenues generated from the registered housing project.

A The Company's entitlement to ITH from its BOI-registered housing project is subject to the compliance with the provisions of the Specific Terms and Conditions of its BOI Registration.

V Pursuant to Section 4 of the Republic Act (RA) No. 107082. the Company is required to

prescribed under R.A. 10708's Implementing Rules and Regulations and Joint exclusions from the tax base. as mav be provided under E.O. 226. within the periods Memorandum Circular No. 1-2016 dated September 1, 2016 income-based tax incentives. VAT and duty exemptions. deductions. credits or file its tax returns and pav their tax liabilities. on or before the deadline as provided under the 1997 Tax Code, 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

b The Company shall be constituted as a withholding agent for the government if it acts as of the Tax Code of 1997, as amended and implemented by Revenue Regulations No. 2- 98, as amended. 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 at source as required under Chapter XIII and Section 57

the Annual Information Return under oath, stating its gross income and expenses incurred 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 during the taxable year.

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