BIR Ruling No. 484-2020

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

DO(-LCH-0484-2020 Certificate of Tax Exemption No:

TO ALL WHOM IT MAY CONCERN: CERTIFICATE OF TAX EXEMPTION

creditable withholding tax on its income received directly in connection with its economic and Mexico, Pampanga, consisting of 1,1072 house and lot units used solely for family home or dwelling purposes located at Brgy. Panipuan, Mexico, Pampanga, a project duly registered with period of four (4)_years beginning from October 2017 or actual start of commercial Investments Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, low-cost housing project (horizontal), The Hauslands Pampangal - Brgy. Panipuan, the Board of Investments (BOI) under Registration No. 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 known as the "Omnibus Taxpayers Identification Number (TIN) as amended. This certifies that HAUSLAND DEVELOPMENT CORPORATION, with is exempt from income tax and dated June 23,2017, for a

below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is exemption from VAT shall only apply to sale of house and lot and other residential dwellings3 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 Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

the National Internal Revenue Code of 1997, as amended. leasing, retail stores, offices, etc., shall be subject to the payment of appropriate taxes under registered with the BOI, if any, including those units used for commercial purposes such as However, the sale of house and lot units in excess of the 1,107 house and lot units

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 AUG 2 0 2020

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-K-1-LMAT Commissioner of Internal Revenue CAESAR R.DULAY 036327 Q

2 Covered by License to Sell Nos. The project name was amended as noted by the Board on November 27, 2017 from Hausland Prime Residences to The Hauslands Pampanga per Director Atty. Marjorie O. Ramos-Samaniego's letter dated January 11, 2018. (275 lots with units) and (832 lots with units) both dated September 07.

2017 3Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963.

HAUSLAND DEVELOPMEIYT CORPORATION (The Hauslands Pampanga) CTENo._BO(-LfH-0484-20.20 Date issuedAUG 202Q

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 from the project, The Hauslands Pampanga -- Brgy. or dwelling purposes, located at Brgy. Panipuan, Mexico, Pampanga. Such exemption shall not cover revenues from units with selling price exceeding P3,000,000.00. Moreover, the 832 units Panipuan,Mexico,Pampanga, consisting of 1,107 house and lot units used solely for family home lot package. covered by License to Sell No. shall not be sold for more than P1,700,000.00 per house and

2.The Company is obligated to construct and sell 1,107 house and lot units based on the following schedules/sales revenues:

Year (No. of Units) Volume Value

2

4

Total

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 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. 107085, the Company is required to file its tax

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

be provided under E.O. 226, within the periods prescribed under RA No. 10708's Implementing incentives, VAT and duty exemptions, deductions, credits or exclusions from the tax base, as may

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

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.

7 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

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 am'ended.

+ The project name was amended as noted by the Board on November 27, 2017 from Hausland Prime Residences to The

Hauslands Pampanga per Director Atty. Marjorie O. Ramos-Samaniego's letter dated January 1 1, 2018.

5 An Act Enhancing Transparency in the Management and Accounting of Tax*incentivesAdministered by Investment

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