Hausland Development Corporation

March 28, 2008 BIR RULING [DA-213-08] RR 2-98; BIR Ruling No. DA-425-07 Hausland Development Corporation 2nd Floor Galang-Wong Bldg. Balibago, Angeles City Attention: Atty. Christopher Ryan T. Tan Gentlemen : This refers to your letter dated November 5, 2007 requesting for exemption from income and expanded withholding taxes since Hausland Development Corporation ("HDC" for brevity) is entitled to income tax holiday (ITH) on account of its registration with the Board of Investments (BOI) under Executive Order No. 226, otherwise known as the "Omnibus Investments Code of 1987." ESAHca Documents show that Hausland Development corporation ("HDC" for brevity) is duly registered with the Securities and Exchange Commission (SEC) under SEC Registration No. CS200413535 dated August 31, 2004. Its primary purpose is to own, use, improve, develop, subdivide, sell, exchange, lease, and hold for investment of otherwise, real estate of all kinds, including buildings, houses, apartments and other structures. It is also registered with the Board of Investments as a "a New Developer of Mass Housing Project on a non-pioneer status under Certificate of Registration No. 2007-107 dated June 27, 2007. HDC has been granted a four-year ITH from June 27, 2007 or date of registration. Its project Tuscany North Estates located at Barangay Burot, Tarlac City is registered with the Housing and Land Use Regulatory Board (HLURB) under Certificate of Registration No. CR-11995 dated May 17, 2006. In reply, please be informed that under Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, as amended, implementing Section 57 (B) of the Tax Code of 1997, as amended, the withholding tax prescribed in the said Regulations shall not apply to income payments to person enjoying exemption from the income tax provided by Republic Act No. 7916 and the Omnibus Investments Code of 1987. aIcHSC Accordingly, since HDC is a BOI-registered enterprise, enjoying exemption from payment of income taxes pursuant to the provisions of Section 39 (a) (1) of the Omnibus Investments Code of 1987 for a period of four (4) years reckoned from June 27, 2007, this Office is of the opinion as its hereby holds, that HDC is exempt from the payment of the creditable withholding tax imposed under RR 2-98, as amended, on income payments received by it during the aforementioned period with respect to 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 as null and void. HITEaS Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service