Urban Consolidated Constructors Phils., Inc./Kit Properties, Inc. — Consortium

January 24, 2018 CERTIFICATE OF TAX EXEMPTION NO. 036-18 CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN : This certifies that URBAN CONSOLIDATED CONSTRUCTORS PHILS., INC./KIT PROPERTIES, INC. CONSORTIUM (TIN: 000-000-000-000), 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: Date of Notice of Award Date of Contract Agreement Contract Price (Php) Project Name Location No. of Socialized Housing Units subject of tax exemption March 4, 2015 June 17, 2015 P____________ Hamod People's Village Brgy. Hamod, Batad, Iloilo 1,000 However, the purchases of goods/articles by URBAN CONSOLIDATED CONSTRUCTORS PHILS., INC./KIT PROPERTIES, INC. CONSORTIUM shall be subject to VAT, even if the said purchases are to be used for the socialized housing projects, since VAT is an indirect tax which can be passed on by the seller of the goods/services. It shall be understood that URBAN CONSOLIDATED CONSTRUCTORS PHILS., INC./KIT PROPERTIES, INC. CONSORTIUM must issue non-VAT official receipts on its gross receipts from the said socialized housing projects. Moreover, the Deeds of Absolute Sale/Unilateral Sale Executed by the Landowners in favor of the NHA over the parcels of land described below, to wit: Date of Deed of Sale/ Unilateral Sale Name of Landowner/Seller Transfer Certificate of Title No. Area (Sq.m.) Area Transferred Location May 7, 2015 AAA 090-2014009205 45,750 45,750 Brgy. Hamod, Batad, Iloilo May 7, 2015 AAA 090-2014009206 4,230 4,230 Brgy. Hamod, Batad, Iloilo May 7, 2015 BBB EPT-23229 23,240 23,240 Brgy. Hamod, Batad, Iloilo May 7, 2015 BBB EPT-23230 6,760 6,760 Brgy. Hamod, Batad, Iloilo which shall be used for the above-mentioned socialized housing projects, are 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 Authorizing Registration (CAR) 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 CAR. 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 24th day of January, 2018. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue