BIR Ruling No. 274-2020

REPUBLICOF THE PHILIPPINES

a BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

1

Quezon City

Certificate of Tax Exemption No:

BOI-LEH-0274 -2 0 2 0

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

withholding tax on its income received directlyin connection with its low-cost mass housing project (vertical), Wind Residences Tower 4, consisting of 426 housing units used solely for commercial operations/selling, whichever is earlier, but in no case earlier than the date of duly registered with the Board of Investments (BOI) under Registration No. 2012-091 dated June 1,2012, for a period of three (3) years beginning from June 2013 or actual start of registration of the project with the BOI, pursuant to Executive Order (EO) No. 226, otherwise known as the Omnibus Investments Code of 1987and Section 2.57.5(B)(2 of Revenue family home or dwelling purposes,located at BrgyMaharlikaWest,Tagaytay Citya project Regulations (RR) No. 2-98, as amended. Identification Number (TIN) This certifies that SM DEVELOPMENT CORPORATION, with Taxpayers , is exempt from income tax and creditable

below, or house and lot and other residentiai 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 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 with selling price of not more than P2,000,000.00. 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 1 commercial unit and 155 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 426 housing units registered with dated November 4, 2013, the excess is 300 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

Maeawa

K- Commissioner of Internal Revenue CAESAR R. DULAY 035092 C

Sle ofloony regard of the pri shall esubjet to VAT staring January O1,202 ursuant to Republic Act (RA) No. 10963.

02.74-2020 SM DEVELOPMENT CORPORATION (Wind Residences Tower 4) CTE No.: Date issued: BOI-LEH- MAY 2 6 20ZU

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

l. The exemption from income and creditable withholding taxes covers only income directly

attributable to the revenues generated from the project, Wind Residences Tower 4, consisting of 426 housing units used solely for family home or dwelling purposes, located at Brgy. Maharlika West, Tagaytay City. Such exemption shall not cover revenues from units with selling price

exceeding P2,500,000.00.

2 The Company is obligated to construct and sell 426 housing units based on the following

schedules/sales revenues:

Year (No. of Units) Volume 2 8 652,511 Value (Php)

2 107 233,040

3 21 46,608. Total 426 932,159

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.

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. 107082, the Company is required to file its tax

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 returns and pay its tax liabilities, on or before the deadline as provided under the National Internal 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. Revenue Code of 1997, as amended, using the electronic system for filing and payment of taxes of

6. 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.

I 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.

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 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 National Internal Revenue Code of 1997, as amended.

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

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