Vancouver Lands Inc.

May 26, 2020 CERTIFICATE OF TAX EXEMPTION NO. BOI-LEH-265-20 CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN : This certifies that VANCOUVER LANDS, INC. , with Taxpayers Identification Number (TIN) 000-000-000-000, is exempt from income tax and creditable withholding tax on its income received directly in connection with its low cost mass housing project (vertical), Trees Residences Phase 1-Quirino Highway, Barangay Pasong Putik, Novaliches, Quezon City , consisting of 2,093 1 housing units used solely for family home or dwelling purposes, located at Quirino Highway, Barangay Pasong Putik, Novaliches, Quezon City, a project duly registered with the Board of Investments (BOI) under Registration No. 2014-045 dated March 05, 2014, for a period of three (3) years beginning from October 31, 2014 to October 30, 2017 , pursuant to Executive Order (EO) No. 226, otherwise known as the "Omnibus Investments Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, as amended. 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. HTcADC However, the sale of housing units in excess of the 2,093 housing units registered with the BOI, if any, as well as the 294 parking slots, including those other units used for commercial purposes such as leasing, retail stores, offices, etc., shall be subject to the payment of appropriate taxes under the National Internal Revenue Code of 1997, as amended. 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 May, 2020. (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 project, Trees Residences Phase 1-Quirino Highway, Barangay Pasong Putik, Novaliches, Quezon City , consisting of 2,093 housing units used solely for family home or dwelling purposes, located at Quirino Highway, Barangay Pasong Putik, Novaliches, Quezon City. Such exemption shall not cover revenues from units with selling price exceeding P3,000,000.00. 2. The Company is obligated to comply with the following schedules/sales revenues: Year Volume (No. of Units) Value (P'000) 1 1,650 ________ 2 444 ________ 3 - - Total 2,094 3 ________ 3. In the computation of the project's ITH, interest income from in-house financing shall not be considered as part of the revenues generated from the registered housing project. 4. The Company's entitlement to ITH for its BOI-registered housing project is subject to the compliance with the provisions of the Specific Terms and Conditions of its BOI Registration. CAIHTE 5. Pursuant to Section 4 of Republic Act (RA) No. 10708, 4 the Company is required to file its tax returns and pay its tax liabilities, on or before the deadline as provided under the National Internal Revenue Code of 1997, as amended, using the electronic system for filing and payment of taxes of the BIR. It shall file with BOI a complete annual tax incentives report of its income-based tax incentives, VAT and duty exemptions, deductions, credits or exclusions from the tax base, as may be provided under E.O. 226, within the periods prescribed under RA No. 10708's Implementing Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1, 2016. 6. The Company shall be constituted as a withholding agent for the government if it acts as employer and any of its employees received compensation income subject to compensation withholding tax, or if it makes payments to individuals or corporations subject to the withholding taxes at source as required under Chapter XIII and Section 57 of the National Internal Revenue Code of 1997, as amended, and implemented by Revenue Regulations (RR) No. 2-98, as amended. 7. The Company is required to file on or before the 15th day of the fourth month following the close of its accounting period a Profit and Loss Statement and Balance Sheet with the Annual Information Return under oath, stating its gross income and expenses incurred during the taxable year. aScITE 8. Finally, the Company's books of accounts and other pertinent records shall be subject to periodic examination by revenue enforcement officers of this Bureau for the purpose of ascertaining whether it is complying with the conditions under which it has been granted tax exemption or tax incentives and its tax liability, if any, pursuant to Section 235 of the National Internal Revenue Code of 1997, as amended. Footnotes 1. Per License to Sell No. 033394 dated June 25, 2018 issued by the Housing and Land Use Regulatory Board (HLURB). 2. Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to Republic Act (RA) No. 10963. 3. While the company is obligated to construct 2,094 housing units, the exemption from income and CWT covers only revenues generated from the 2,093 housing units allowed per HLURB License to Sell No. 033394 dated June 25, 2018. 4. An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Administered by Investment Promotion Agencies.