R.R. Encabo Constructors, Inc.

September 6, 2019 CERTIFICATE OF TAX EXEMPTION NO. 487-19 CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN : This certifies that R.R. ENCABO CONSTRUCTORS, INC. (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, as amended by RA No. 10884 (Balanced Housing Development Program Amendments) dated July 17, 2016, 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: HTcADC Date of Notice of Award Date of Contract Agreement Contract Price (Php) Project Name Location No. of Socialized Housing Units subject of tax exemption June 15, 2017 August 31, 2018 P____________ Hill Country Nabas Brgy. Pinatuad, Nabas Site 1, Aklan 568 However, the purchases of goods/articles by R.R. ENCABO CONSTRUCTORS, 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 R.R. ENCABO CONSTRUCTORS, INC. must issue VAT Exempt official receipts on its gross receipts from the said socialized housing project. 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 Name of Landowners/Sellers Transfer/Original Certificate of Title No. Area (Sq.m.) Area Transferred (Sq.m.) Location March 25, 2019 AAA TCT No. T-28962 412 412 Brgy. Pinatuad, Nabas, Aklan March 25, 2019 AAA TCT No. T-28913 6,629 6,629 Brgy. Pinatuad, Nabas, Aklan March 25, 2019 AAA TCT No. T-28963 427 427 Brgy. Pinatuad, Nabas, Aklan March 25, 2019 AAA OCT No. P-26676 460 460 Brgy. Pinatuad, Nabas, Aklan March 25, 2019 BBB OCT No. P-31688 8,902 8,902 Brgy. Pinatuad, Nabas, Aklan March 25, 2019 CCC OCT No. P-26637 4,489 4,489 Brgy. Pinatuad, Nabas, Aklan which shall be used for the above-mentioned socialized housing project, is not subject to capital gains tax and documentary stamp tax pursuant to Sections 19 and 20 of Republic Act (RA) No. 7279. 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 6th day of September, 2019. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue