Basic Housing Solutions, Inc.

February 26, 2019 CERTIFICATE OF TAX EXEMPTION NO. 196-19 CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN : This certifies that BASIC HOUSING SOLUTIONS, INC. , with Tax Identification Number 000-000-000-000, is exempt from income tax, creditable withholding tax (CWT) and value-added tax (VAT) pursuant to Section 20 of Republic Act (RA) No. 7279 on its income received directly in connection with its sale of socialized housing units to qualified beneficiaries in Hillsview Royale 2 ,consisting of 42 1 house and units, located at Brgy. Timalan, Naic, Cavite, a project duly registered with the Housing and Land Use Regulatory Board (HLURB) under Certificate of Registration No. 22498 and License to Sell No. 23909, provided that the ceiling price per house and lot package does not exceed P400,000.00 2 per house and lot. HTcADC Nonetheless, it is observed that documentary stamp tax (DST) is not one of the taxes covered by the tax exemption clause in Section 20 of RA No. 7279. Such being the case, the owner/project developer/seller shall be liable to pay the documentary stamp tax on the documents conveying the properties imposed under Section 196 of the Tax 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 R.A. 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 at the back hereof. The Company is liable, however, for all 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 26th day of February, 2019. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ATTACHMENT 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 42 socialized housing units in Hillsview Royale 2 ,located at Brgy. Timalan, Naic, Cavite . 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 P400,000.00 per house and lot. 4. List of Non-saleable lots per HLURB License to Sell No. 23909, granted by the HLURB, Region IV, Southern Tagalog Region, Calamba City, Laguna to wit: Non-Saleable Block No. Lot No. Parks/Playground 2 10 Parks/Playground 24 45 Community Facilities 1 1 Community Facilities 5 1 Community Facilities 6 8 Community Facilities 20 5 Community Facilities 21 1 Community Facilities 24 44 Excluded Portion 2 11~44 Excluded Portion 20 1~4, 6, 7, 8 Excluded Portion 2~1 16 Excluded Portion 24 43, 46~48 5. No. of Units in compliance to Section 18 of RA 7279 per HLURB License to Sell No. 23909, granted by the HLURB, Region IV, Southern Tagalog Region, Calamba City, Laguna to wit: CAIHTE Credited to: Address No of Lots Tierra Sueo Brgy. Tulo, Calamba City, Laguna 112 The Cambria Brgy. Sto. Domingo, Bay, Laguna 155 Tierra Vista-Pampanga Brgy. San Rafael, Mexico, Pampanga 100 Valle-Verde Dasmarias PH. 1 Brgy. Langkaan II, Dasmarias, Cavite 117 Valle-Verde Dasmarias PH. 2 Brgy. Langkaan II, Dasmarias, Cavite 77 Zuri Residences Hapay na Mangga, Brgy. Dolores, Taytay, Rizal 143 The Cambria Phase 2 Brgy. Sto. Domingo, Bay, Laguna 115 Terra Vista Homes Pampanga Phase 2 Brgy. San Rafael, Mexico, Pampanga 133 Calamba Park Residences Brgy. Makiling, Calamba City, Laguna 27 The Veraneo Phase 2 Brgy. San Sebastian, Kawit, Cavite 13 TOTAL 882 Remaining Balance = 42 Units Footnotes 1. Only 42 units are not credited to other projects per HLURB License to Sell No. 23909. 2. The maximum selling price is pegged at 400,000.00 based on HLURB License to Sell No. 23909.