BIR Ruling No. 380-2021

REPUBLIC OF THE FHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No:

BOI-LEH - 3 8 0 - 2 0 2 1

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

withholding tax on its income received directly in connection with its low-cost mass housing Identification Number (TIN) This certifies that AXEIA nFVFIOPMENT CORPORATION1, with Taxpayer is exempt from income tax and creditable

project (horizontal), The Cambria Phase 2 -- Brgy. Sto. Domingo, Bay, Laguna, consisting of 405 housing units used solely for family home or dwelling purposes, located at Brgy. Sto. Domingo, Bay, Laguna, a proiect dulv registered with the Board of Investments (BOI) under Certificate of Registration No. dated January 07, 2015, for a period of three (3) years

beginning from January 2015 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 knowr: as the "Omnibus Investments Code of

1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, as amended.

Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and below, or house and lot and other residential 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 (Tax 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 dwellings2 with selling price of not more than P3,199,200.00.3

However, the sale of housing units in excess of the 405 housing 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 the Tax Code, as amended.

The grant of tax exemption herein is subject to the compliance with the provisions of 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.

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_OCT i 1 2021

CO

K-I-LMAT Commissioner of Internal Revenue CAESAR R. DULAY EE 046153

1 Formerly: Asiatic Development Corporation 3 As adjusted using the 2010 Consumer Price Index values per RR No. 8-2021 dated June 1i, 2021. 2 Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963.

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, The Cambria Phase 2 - Brgy. Sto. by License to Sell No. Domingo, Bay, Laguna, consisting of 405 housing units used solely for family home or dwelling purposes located at Brgy. Sto. Domingo, Bay, Laguna. Such exemption shall not cover revenues from units with selling price exceeding P3,000,000.00. Moreover, the 405 housing units covered shall not be sold for more than P1,250,000.00 per house and lot.

2 The Company is obligated to construct and sell 405 housing units based on the following

schedules/sales revenues:

Total Year 3 2 (No. of Units) Volume 135 134 40 136 (P000) Value

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 housing project.

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 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 EO No. 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.

6. The Cornpany shall be constituted as a withholding agent for the government if it acts as empioyer

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, ard implemented by RR No. 2-98, as amended.

T The Company is required to file on or before the 15th day of the fourth month following the ciose

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.

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 compiying 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.

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

Promotion Agencies.

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