Intercontinental Development Corporation

November 25, 2019 CERTIFICATE OF TAX EXEMPTION NO. 702-19 CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN : This certifies that INTERCONTINENTAL DEVELOPMENT CORPORATION 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 for residential and dwelling purposes to qualified beneficiaries in Abbey Place Subdivision ,consisting of 218 1 socialized house and lot units, located at Susana Heights, Brgy. Tunasan, Muntinlupa City, a project duly registered with the Housing and Land Use Regulatory Board (HLURB) under Certificate of Registration No. 028114 and License to Sell No. 032450. 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. 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, the sale of the 32 economic lots and 9 economic house and lots units, 3 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 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 25th day of November, 2019. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ATTACHMENT TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION 1. The exemption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the 218 socialized house and lot units in Abbey Place Subdivision ,located at Susana Heights, Brgy. Tunasan, Muntinlupa City. 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 Bureau of Internal Revenue (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 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 P____________ on the 11 house and lot units and P____________ on the 207 house and lot units. a. The following are to be sold as socialized house and lot units with maximum price of P____________ per unit: Block No. Lot No. Psd/Pcs No. No. of Lots 8 7, 11 to 17 Psd-00085165 8 9 5, 13 -do- 2 17 10 -do- 1 Total 11 b. The following are to be sold as socialized house and lot units with maximum price of P____________ per unit: Block No. Lot No. Psd/Pcs No. No. of Lots 1 1 to 6 Psd-00-085165 6 2 1 to 5, 8 to 12 -do- 10 3 1 to 13 -do- 13 6 1 to 6, 9 to 12, and 14 -do- 11 7 1 to 13 -do- 13 8 1 to 6, 8 to 10, 18, 19 -do- 11 9 1 to 4, 6 to 12, 14 to 19 -do- 17 10 1 to 7 and 10 -do- 8 16 1 to 12 -do- 12 17 1, 2, 4 to 9, 11 to 16, 21 to 24 -do- 18 18 1 to 37 -do- 37 19 1 to 48 -do- 48 20 14 to 16 -do- 3 Total 207 Footnotes 1. 11 house and lot units shall not be sold for more than P____________ per unit and 207 house and lot units shall not be sold for more than P____________ per unit as enumerated and identified under Items 3 (a) and (b) of the Terms and Conditions of this Certificate of Tax Exemption. 2. Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963. 3. Per License to Sell No. 032450 dated August 15, 2017.