J.C. Tayag Builders Incorporated/Granby Trading & Construction-Joint Venture

February 2, 2017 CERTIFICATE OF TAX EXEMPTION NO. 030-17 This certifies that J.C. TAYAG BUILDERS INCORPORATED/GRANBY TRADING & CONSTRUCTION-JOINT VENTURE , an entity engaged by the National Housing Authority (NHA), is exempt from project-related income taxes, creditable withholding tax and value-added tax (VAT), pursuant to Section 20 (d) (1) and (3) of Republic Act No. 7279, on its income received directly in connection with the construction/development of socialized housing units under the NHA's Yolanda Permanent Housing Program, to wit: DHITCc Date of Date of Contract Contract Price Project Name Location No. of Socialized Notice of Agreement (Php) Housing Units Award subject of tax exemption October 24, December 16, P111,193,000.00 Samar Brgy. Cantubi, 390 2014 2014 Forestdale Balangkayan, Eastern Samar However, the purchases of goods/articles by J.C. TAYAG BUILDERS INCORPORATED/GRANBY TRADING & CONSTRUCTION-JOINT VENTURE shall be subject to VAT, even if the said purchases are to be used for the socialized housing project, since VAT is an indirect tax which can be passed on by the seller of the goods/services. It shall be understood that J.C. TAYAG BUILDERS INCORPORATED/GRANBY TRADING & CONSTRUCTION-JOINT VENTURE must issue non-VAT official receipts on its gross receipts from the said socialized housing projects. Moreover, the Deed of Absolute Sale entered by the Landowner and the NHA over the parcels of land described below, to wit: Date Name of Landowner Original Area Transferred Location Certificate (sq.m.) (sq.m.) of Title February 5, 2015 Lucila C. Abobo P-19749 26,233 26,233 Brgy. Cantubi, Balangkayan, Eastern Samar which will be used for the above mentioned socialized housing project, is not subject to income tax/capital gains tax/expanded withholding tax, documentary stamp tax and value-added tax (VAT) pursuant to Sections 19 and 20 of Republic Act (RA) No. 7279 and Section 109 (1) (P) of the Tax Code of 1997, as amended. It is, however, understood that this CTE is never intended and shall not be construed as giving authority to the concerned Register of Deeds to effect transfer of the land titles in the name of the buyer without the necessary certificate of authority to register issued by this Bureau. In this regard, this CTE shall be presented to the Revenue District Office (RDO) concerned in order for the latter to issue the Certificate Authorizing Registration (CAR). The CAR shall only be issued after the submission of the requirements provided under RMO No. 15-2003. CAacTH Upon application for exemption, a lien on the title of the land shall be annotated by the Register of Deeds having jurisdiction over the property, to the effect that the same is to be applied or is being applied to socialized housing project pursuant to RA 7279. This Certificate of Tax Exemption is being issued on the basis of the facts and 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. Issued this 2nd day of February, 2017. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue