BIR Ruling No. 664-2020

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No:

BOI-LEH -066L-2020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

This certifies that 8990 HOUSING DEVELOPMENT CORPORATION, with Taxpayer Identification Number (TIN) , is exempt from income tax and

dwelling purposes, located at Brgy. Conception, Ormoc City, Leyte, a project dulv registered Ormoc City, Leyte, consisting of 360 house and lot units used solely for family home or creditable withholding tax on its income received directly in connection with its economic and low-cost housing project, Deca Homes Ormoc - Gregoria Residences -- Brgy. Conception, with the Board of Investments (BOD) under Certificate of Registration No. dated

start of commercial operations/selling, whichever is earlier, but in no case earlier than the date December 04, 2019, for a period of four (4) years beginning from December 2019 or actual

known as the "Omnibus Investments Code of 1987" and Section 2.57.5 (B) (2) of Revenue of registration of the project with the BOI, pursuant to Executive Order No. 226, otherwise Regulations (RR) No. 2-98, as amended.

exempt from value-added tax (VAT) pursuant to Section 109 (1) (P) of the National Internal below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is 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 Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

with selling price of not more than P2,000,000.00.

the National Internal Revenue Code of:1997, 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 360 house and lot units

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 DEC 1 7 2020

aeM

CAESAR R.DULAY

K-1-MDT Commissioner of Internal Revenue 038653

ISale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963.

(Deca Homes Ormoc - Gregoria Residences) 8990 HOUSING DEVELOPMENT CORPORATION CTE No. Date issued 0664-Z02'0

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1. The exemption from income and creditable withholding taxes coyers only income directly attributable to the revenues generated from the project, Deca Homes Ormoc - Gregoria solely for family home or dwelling purposes, located at BrgyConception, Ormoc City, Leyte. Such Residences - Brgy. ConceptionOrmoc City, Leyte, consisting of 360 house and lot units used more than P1,700,000.00 per house and lot. exemption shall not cover revenues from units with selling priceexceeding P2,000,000.00. Moreover, the 360 house and lot units covered by License to Sell No. shall not be sold for

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

a Only income generated from the sale of housing units (Deca Homes Ormoc - Gregoria

Residences --Brgy. Conception Ormoc CityLeyte 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 consideredas 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

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 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 Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1, 2016.

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 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.

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 National Internal Revenue 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

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

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