BIR Ruling No. 566-2020

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No:

BOI-LEH-0566-2020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

housing project, Urban Deca Homes -- Tisa 2 (Bldg. 1 to Bldg. 6) - Brgy. Tisa, Cebu City consisting of 440' residential units used solely for family home or dwelling purposes, located from December 2018 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 withholding tax on its income received directly in connection with its economic and low-cost at Brgy. Tisa, Cebu City. a project duly registered with the Board of Investments (BOI) under Order (EO) No. 226, otherwise known as the "Omnibus Investments Code of 1987 and Taxpayer's Identification Number Registration No. Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, as amended. This certifies that 8990 HOUSING DEVELOPMENT CORPORATION, with dated December 13, 2018, for a period'of three (3) years beginning is exempt from income tax and creditable

with selling price of not more than P2,000,000.00. 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 exempt from value-added tax (VAT) pursuant to Section 109 (1) (P) of the National Internal 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

However, the sale of residential units in excess of the 440 residential units registered

of appropriate taxes under the National Internal Revenue Code of 1997, as amended. commercial purposes such as leasing, retail stores, offices, etc., shall be subject to the payment with the BOI, if any, including the shared parking slots and those other units used for

applicable BIR rules and regulations and the Terms and Conditions stated in Annex "A" hereof. The grant of tax exemption herein is subject to the compliance with the provisions of

The Company is liable, however, for all other applicable taxes not discussed above.

: Covered by the following Certificates of Registration (COR) and Licenses to Sell (LTS) issued by the Housing and Land Use Regulatory Board (HLURB):

COR No. and LTS No. Urban Deca Homes - Tisa 2 (Bldg. 1) 72 units

COR No COR No. COR No. COR No. COR No. and LTS No. and'ETS No. and LTS No. and LTS No. and LTS No. Total Urban Deca Homes -- Tisa 2 (Bldg. 2) Urban Deca Homes -- Tisa 2 (Bldg. 3) Urban Deca Homes - Tisa 2 (Bldg. 4) Urban Deca Homes - Tisa 2 (Bldg. 6) Urban Deca Homes - Tisa 2 (Bldg. 5) 440 units 80 units 64 units 64 units 80 units 80 units

2 Sale of lot only, regardless of the price,shall be subject to VAT starting January 01,2021 pursuant to Republic Act (RA) No. 10963.

8990-HOUSING DEVELOPMENT CORPORATION CTE No.: BOI-LEH- 4556-1020

[Urban Deca Homes - Tisa 2 (Bldg. I to Bldg. 6)] Date issued: UC

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

Issued this day of OCT 0 1 2020

Ma3a1a

CAESAR R.DULAY

K-1-LMAT Commissioner of Internal Revenue U 036867

O

8990 HOUSING DEVELOPMENT CORPORATION Urban Deca Homes -Tisa 2(Bldg.I to Bldg.6 Date issued:2021 CTE No.: BOI-LEH-U 5 66-20 20

ANNEX "A"

TERMS AND CONDITIONS

OF THE CERTIFICATE OF TAX EXEMPTION

1.The exemption from income and creditable withholding taxes (CWT) covers only income directly

attributable to the revenues generated from the project, Urban Deca Homes -- Tisa 2 (Bldg. 1 to

Bldg. 6)- Brgy. Tisa, Cebu City, consisting of 440 residential units used solely for family home

or dwelling purposes, located at Brgy. Tisa, Cebu City. Such exemption shall not cover revenues from units with selling price exceeding P2,000,000.00. Moreover, the 440 residential units covered by the above-enumerated Licenses to Sell shall not be sold for more than P1,700,000.00 per unit.

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

a Only income generated from the sale of housing units [Urban Deca Homes -- Tisa 2 (Bldg.

1 to Bldg. 6) -- Brgy. Tisa, Cebu City] 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. shali be qualified.

b. Interest income from in-house financing shall not be considered as 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. 107083, the Company is required to file its tax be provided under E.O. 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. 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

5. 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, 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. or if it makes payments to individuals or corporations subject to the withholding taxes as source as

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.

7.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, 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 as amended.

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