BIR Ruling No. 275-2020

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE

HHA BUREAU OF INTERNAL REVENUE

Quezon City

D

Certificate of Tax Exemption No:

BOI-LEH-275-22

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN

project,Wind Residences Tower Brgy.Maharlika WestTagayay City,consisting of 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 withholding tax on its income receivea airectly in connection with its low-cost mass housing 496 housing units used solely for family home or dwelling purposes, located at Brgy. Maharlika West,Tagayay Citya project duly registered with the Board of InvestmentsBOI under Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, as amended. Identification Number (TIN) Registration No. from June 2014 or actual start of commercial operations/selling, whichever is earlier, but in no This certifies that SM DEVELOPMENT CORPORATION, with Taxpayers dated December 4,2013,for a period of three (3) years beginning is exempt from income tax and creditable

below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is with selling price of not more than P2,000,000.00. 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! Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

payment of appropriate taxes under the National Internal Revenue Code of 1997, as amended. the BOI (per License to Sell No. units), as well as the 8 commercial units and 97 parking slots, including those other units used for commercial purposes such as leasing, retail stores, offices, etc., shall be subject to the However, the sale of housing units in excess of the 496 housing units registered with " dated January 22, 2014, the excess is 154 housing

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

ieezaMw

K-1 Commissioner of Internal Revenue CAESAR R. DULAY 035091

C

Sale of lot only regardessof the priceshll be subject toVAT staring January O1. 2021 pursuant to Republic Act (RA No. 10963.

SM DEVELOPMENT CORPORATION (Wind Residences Tower 5 CTE No.: Date issued: BOILEH -c0.235- 2 0 2 0 MAY2 6 2020

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 frm the project,Wind Reidences Tower 5 - Brgy dwelling purposes, located at Brgy.Maharlika WestTagaytay City. Such exemption shali not cover revenues from units with selling price exceeding P3,000,000.00. Maharlika West, Tagaytay City, consisting of 496 housing units used solely for family home or

2. The Company is obligated to construct and sell 496 housing units based on the following schedules/sales revenues:

Year 1 2 (No. of Units) Volume 496 (Php'000) 1,212,868 Value

3 Total 4 96 1,212,868

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 Companys-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. 107082, the Company is required to file its tax 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 incentives; VAT and duty 'exemptions, deductions, credits or exclusions from the tax base, as may 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.

6.The Company shall be constituted as a withholding agent for the government if it acts as employer required under Chapter XII and Section 57 of the National Internal Revenue Code of 1997, as 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 amended, and implemented by Revenue Regulations (RR) No.. 2-98, as: amended.

T The Company is required to file on or before the 15t 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.

8.Finally, the Company's books of accounts and other pertinent records shall be subject to periodic and its tax fiability, if any, pursuant/to Section 235 of the National. Internal Revenue Code of 1997. 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 as amended.

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

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