Rizal Province Habitat for Humanity Foundation, Inc.

March 9, 2018 CERTIFICATE OF TAX EXEMPTION NO. 402-18 CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN : This certifies that RIZAL PROVINCE HABITAT FOR HUMANITY FOUNDATION, INC. 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 (RA) No. 7279, on its income received directly in connection with the Socialized Housing Program of the Provincial Government of Rizal, to wit: Project Name Kind of Development Beneficiaries Location Casimiro A. Ynares, Sr. Village 1 300 home lots with an area of fifty (50) square meter each, more or less 2 Rizal Habitat Homeowners' Association, Inc. Brgy. Pinugay, Baras, Rizal However, the purchases of goods/articles by RIZAL PROVINCE HABITAT FOR HUMANITY FOUNDATION, INC. 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 RIZAL PROVINCE HABITAT FOR HUMANITY FOUNDATION, INC. must issue VAT-exempt official receipts on its gross receipts from the said socialized housing project. Also, the distribution or transfer of the home lots to the beneficiaries is subject to documentary stamp tax (DST) imposed under Section 196 of the National Internal Revenue Code of 1997, as amended, in accordance with Revenue Regulations (RR) No. 11-97, as amended by RR No. 17-2001. The DST herein imposed shall be based on the actual consideration considering that one of the contracting parties is the Government pursuant to Revenue Memorandum Order (RMO) No. 41-91 and Section 196 of the National Internal Revenue Code of 1997, as amended. Moreover, the notarial acknowledgment to the individual deed of conveyance is subject to DST of P15.00 pursuant to Section 188 of the National Internal Revenue Code of 1997, as amended. Notwithstanding the foregoing, the Bureau of Internal Revenue (BIR) shall conduct verification and post-audit that the actual occupants of the property transferred are qualified member-beneficiaries and therefore, RIZAL PROVINCE HABITAT FOR HUMANITY FOUNDATION, INC. is entitled to exemption from capital gains tax or income tax imposed under the National Internal Revenue Code of 1997, as amended. 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 9th day of March, 2018. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue Footnotes 1. Formerly Pinugay Resettlement Project. It was changed to Casimiro A. Ynares, Sr. Village pursuant to Sangguniang Panlalawigan Resolution No. 03-159 dated November 10, 2003. 2. Pursuant to the Memorandum of Agreement made and executed by and between the Province of Rizal and the Rizal Province Habitat for Humanity Foundation, Inc.