BIR Ruling No. 646-2017

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

Certificate of Tax Exemption No:

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

November 14, 2014, for a period of 3 years beginning from November 2014 or actual start General Trias Phase 2 -- Barangay San Francisco, General Trias, Cavite consisting of 448 housing units located at Barangay San Francisco. General Trias, Cavite. a project duly received directiy in connection with its economic and low-cost housing project, Lessandra registered with the Board of Investments (BOI) under Registration No. TIN This certifies that HOUSEHOLD DEVELOPMENT CORPORATION with is exempt from income tax and creditable withholding tax on its income dated

amended. known as the "Omnibus Investments Code of 1987" and Sec.2.57.5 (B)(2) of RR No. 2-98. as 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 No. 226, otherwise

below, or house and lot and other residential dwellings valued at P3,199,200.00 and below. is VAT-exempt under Section 109(1)(P) of the 1997 Tax Code, as amended. Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

The Company is liable, however, to all other applicable taxes not enumerated above. applicable BIR rules and regulations and the Terms and Conditions stated at the back hereof. 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. Issued this This Certificate of Tax Exemption is being issued on the basis of the facts and day of UEC 1 Q 2017

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K-1 Commissioner of Interpal Revent CAESAR R. DULAY 011923

Household Development Corporat ion Page 2 of 2 Date issued 12-19-2017 CTE NO. 646-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

The exemption from income and creditable withholding taxes covers ouly income directly Barangay San Francisco, General Trias, Cavite. Such exemption shall not cover revenues from units with selling price exceeding P3,000,000.00. attributable to the revenues generated from the project. Lessandra Generai Trias Phase 2 Barangay San Francisco, General Trias, Cavite consisting of 448 housing units, located at

2. The Company is obligated to construct and sell 448 housing units based on the following schedules/sales revenues:

Year Totat 2 (No. of Units) Volume 44 135 124 1 89 Va{ue (Php '000)

3. In the coinputation 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.

A The Coinpany'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. Pursuant to Section 4 of Republic Act (RA) No. 10708', the Company is required to file its and payment of taxes. provided under E.O. 226. within thirty (30) days from the deadline for filing of tax returns tax returns and pay its 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 income-based tax incentives. VAT and duty exemptions, deductions, credits or exclusions from the tax base, as may be

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

withholding tax, or if it makes payments to individuals or corporations subject to the employer and any of its employees received compensation income subject to compensation withholding taxes as source as required under Chapter XIHI and Section 57 of the Tax Code of 1997. 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 foliowing the the taxable year. close of its accounting period of a Profit and Loss Staternent and Balance Sheet with the Annual Information Return under oath, stating its gross income and expenses incurred during

8. Finally, the Company's books of accounts and other pertinent records shall be subiect 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 Tax Code of i 997, as amended.