Lynville Realty & Development Corporation

February 22, 2019 CERTIFICATE OF TAX EXEMPTION NO. 177-19 CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN : This certifies that LYNVILLE REALTY & DEVELOPMENT CORPORATION 1 with Taxpayers Identification Number (TIN) 000-000-000-000, is exempt from income tax and creditable withholding tax (CWT) pursuant to Section 20 (d) (1) of Republic Act (RA) No. 7279, as amended by RA No. 10884 (Balanced Housing Development Program Amendments) dated July 17, 2016, on its income received directly in connection with its sale of socialized house and lot units to qualified beneficiaries in Lynville Residences Lemery ,consisting of 511 socialized house and lot units, located at Brgy. Mataas na Bayan, Lemery, Batangas, a project duly registered with the Housing and Land Use Regulatory Board (HLURB) under Certificate of Registration No. 028688 and License to Sell No. 033083, provided that the selling price of said units does not exceed P450,000.00 per house and lot. HTcADC Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is exempt from value-added tax (VAT) pursuant to Section 109 (1) (P) of the National Internal Revenue Code of 1997, as amended. Provided, however, that beginning January 01, 2021, the exemption from VAT shall only apply to sale of house and lot and other residential dwellings 2 with selling price of not more than P2,000,000.00. Furthermore, the Deed of Absolute Sale executed by the Landowners in favor of LYNVILLE REALTY & DEVELOPMENT CORPORATION over the parcel of land described below, to wit: Date Name of Landowners Transfer Certificate of Title (TCT) No. Area (sq. m.) Area Transferred (sq. m.) Location September 04, 2017 AAA married to BBB 054-2017000506 43,765 5,822 Brgy. Mataas na Bayan, Lemery, Batangas which shall be used for the above-mentioned socialized housing project, is not subject to capital gains tax (CGT) and VAT pursuant to Section 20 (d) (2) of RA No. 7279 and Section 109 (1) (P) of the National Internal Revenue Code of 1997, as amended. It is observed, however, that documentary stamp tax (DST) is not one of the taxes covered by the tax exemption clause in Section 20 of RA No. 7279. Thus, the documents conveying the properties shall be subject to DST imposed under Section 196 of the National Internal Revenue Code of 1997, as amended, based on the consideration contracted to be paid for such realties or on their fair market value determined in accordance with Section 6 (E) of the same Code, whichever is higher. Likewise, lots/units classified as Economic Housing, not being covered by RA No. 7279, shall be subject to the payment of appropriate taxes. 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 in Annex "A" 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 22nd day of February, 2019. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ANNEX A TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION 1. The exemption from income, creditable withholding taxes and VAT covers only income directly attributable to the revenues generated from the 511 socialized house and lot units in Lynville Residences Lemery located at Brgy. Mataas na Bayan, Lemery, Batangas. 2. The developer shall submit the sworn statement of the buyer that he is eligible as a socialized housing beneficiary under Section 5 (A) of Revenue Regulations (RR) No. 11-97 to the BIR during the processing of the Certificate Authorizing Registration (CAR) for the transfer of the title of the socialized housing unit. 3. 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 socialized house and lot packages in this case does not really exceed P450,000.00. aScITE Footnotes 1. Now: Lynville Land Development Corp. 2. Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963.