Phinma Property Holdings Corp.

July 27, 2009 BIR RULING [DA-(IL-024) 410-09] Section 57 (B); DA-273-2006 Phinma Property Holdings Corp. Phinma Properties Center 29 EDSA, Mandaluyong City Attention: Stephen B. Sabularse AVP-Comptroller Gentlemen : This refers to your letter dated March 12, 2008, requesting confirmation of your exemption from payment of income tax and withholding taxes pursuant to the Omnibus Investments Code of 1987. Documents submitted disclosed that PHINMA PROPERTY HOLDINGS CORPORATION with TIN: 000-137-344-000, is a real property developer habitually engaged in the business of developing and constructing affordable condominium units specifically in Metro Manila; that its project are duly registered with the Housing and Land Use Regulatory Board (HLURB); that it is likewise registered with the Board of Investments (BOI) as a New Developer of Low-Cost Mass Housing Project (Fountain Breeze Sucat, Paraaque City); that it was registered on December 28, 2007 bearing BOI Certificate of Registration No. 2007-255 on a pioneer status; that with the registration, it was granted an Income Tax Holiday (ITH) for a period of four (4) years from December 2007 or actual start of commercial operation, whichever is earlier, but in no case earlier than the date of registration which is December 28, 2007; that the ITH incentives shall be limited to the revenue generated from the registered project (Fountain Breeze Sucat, Paraaque City); and that revenues from units with selling price exceeding P3.0 Million shall not be covered by ITH. In reply, please be informed that under Section 2.57.5 (B) (2) of Revenue Regulations No. 2-98, as amended, implementing Section 57 (B) of the Tax Code of 1997, the withholding tax prescribed in the said Regulations shall not apply to income payments made to persons enjoying exemption from payment of income taxes pursuant to the provisions of any law (general or special) like the Omnibus Investments Code of 1987. Accordingly, since PHINMA PROPERTY CORPORATION 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, income payments made by its local suppliers of goods shall not be subject to 1% expanded creditable withholding tax prescribed in Revenue Regulations No. 2-98, as amended, beginning December 28, 2007 up to December 28, 2011. (BIR Ruling No. 189-2000 dated March 30, 2000). 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