PHINMA Property Holdings Corporation

February 22, 2007 BIR RULING [DA-118-07] 57 (B) DA-349-2004 PHINMA Property Holdings Corporation 4th Flr., Phinma Plaza, 39 Plaza Drive Rockwell Center, Makati City Attention: Mr. Stephen B. Sabularse Comptroller Gentlemen : This refers to your letters dated December 21, 2005 and March 31, 2006 requesting for a Tax Exemption Certificate pursuant to Revenue Regulations No. 2-98, as amended, on account of your registration with the Board of Investments (BOI) under Executive Order No. 226, otherwise known as the "Omnibus Investments Code of 1987". As represented, Phinma Property Holdings Corporation is a real property developer habitually engaged in the business of developing and constructing affordable condominium units; that its projects are duly registered with the Housing and Land Use Regulatory Board (HLURB) under Certificate of Registration No. 11588 and License to Sell No. 13510 pursuant to Batas Pambansa 220; that at present, it has an ongoing project called Spazio Bernardo Project located at Brgy. Sauyo, Bagbag, Quezon City; that it has been registered with the Board of Investments per Certificate of Registration No. 2005-149 dated October 19, 2005 as new developer of mass housing project on a non-pioneer status under the Omnibus Investments Code of 1987 (E.O. 226); that pursuant to the provisions of Rule X, E.O. 226 (Duration of Incentives), all the fiscal and non-fiscal incentives available to it shall be enjoyed within the period specified therein, for those that do not contain a specific period, the same shall terminate after a period of not more than ten (10) years from start-up of commercial operations; that it shall be entitled to income tax holiday (ITH) for a period of four (4) years from October 2005 or actual start of commercial operations/selling, whichever is earlier, but in no case earlier than the date of registration; and that the ITH shall be limited only to the revenue generated from its registered activity (Spazio Bernardo-Novaliches, Quezon City). In reply, please be informed that under Section 2.57.5 (B) (2) of Revenue Regulations No. 2-98, as amended by Revenue Regulations No. 6-2001 implementing Section 57 (B) of the Tax Code of 1997, as amended, withholding tax prescribed in the said Regulations shall not apply to income payments to persons enjoying exemption from the income tax provided by Republic Act No. 7916 and the Omnibus Investments Code of 1987. SHADcT Accordingly, since Phinma Property Holdings Corporatio n is a BOI registered enterprise, enjoying exemption from payment of income taxes pursuant to the Omnibus Investments Code of 1987, this Office is of the opinion as it hereby holds, that it is exempt from the payment of the creditable withholding tax imposed under Revenue Regulations No. 2-98, as amended by Revenue Regulations No. 6-2001 on income payments received by it during the specified period in connection with its registered activity. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service