Al-La Integrated and Development Corporation

February 2, 2018 CERTIFICATE OF TAX EXEMPTION NO. 118-18 CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN : This certifies that AL-LA INTEGRATED AND DEVELOPMENT CORPORATION (TIN: 000-000-000-000), with office address at Rm. 208 Anita Bldg. cor. Timog Ave., Quezon Blvd., Quezon City, is exempt from value-added tax (VAT) pursuant to Section 109 (1) (P) of the 1997 Tax Code, as amended, on its income received directly in connection with its sale of residential condominium units with selling price not exceeding P3,199,200.00 in Franchesca Royale Condominium Bldg. 1 (consisting of 166 residential units), Bldg. 2 (consisting of 126 residential units) and Bldg. 3/Pauline Bldg. (consisting of 160 residential units), located at Old Sauyo Road, Brgy. Sauyo, Quezon City, which projects are duly registered with the Housing and Land Use Regulatory Board (HLURB) under Certificate of Registration Nos. 21385, 20130 and 22938, and License to Sell Nos. 22037, 21943 and 26145, respectively. Any sale of the subject condominium units with selling price in excess of the threshold amount of P3,199,200.00 shall be subject to VAT. It must be emphasized that the sale of the aforesaid condominium units is subject to income tax, and consequently, to the creditable withholding tax under Revenue Regulations (RR) No. 2-98, as amended. Moreover, the sale of commercial units 1 and parking slots 2 in the above condominium projects, regardless of the selling price thereof, is subject to income tax and VAT. The grant of tax exemption herein is subject to the compliance with the provisions of applicable BIR rules and regulations and the Terms and Conditions stated at the back hereof. The Company is liable, however, for other applicable taxes not discussed above. 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, 2018. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ATTACHMENT TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION 1. The exemption from VAT covers only income directly attributable to the revenues generated from the sale of residential condominium units with selling price not exceeding P3,199,200.00 in Franchesca Royale Condominium Bldg. 1 (consisting of 166 residential units), Bldg. 2 (consisting of 126 residential units) and Bldg. 3/Pauline Bldg. (consisting of 160 residential units), located at Old Sauyo Road, Brgy. Sauyo, Quezon City. The sale of commercial units and parking slots in the condominium projects, regardless of the selling price thereof, is subject to income tax and VAT. Moreover, any sale of the residential condominium units with selling price in excess of the threshold amount of P3,199,200.00 shall be subject to VAT. CAIHTE 2. It is understood that the Certificate Authorizing Registration (CAR) shall only be issued after it is established upon proper verification by the Revenue District Officer (RDO) concerned that, considering the rules on valuation of real property, the actual selling price per sale transaction of the condominium units does not really exceed P3,199,200.00. Footnotes 1. 4 commercial units in Bldg. 1, and 2 commercial units in Bldg. 3. 2. 38 parking slots in Bldg. 1, 31 parking slots in Bldg. 2 and 31 parking slots in Bldg. 3.