Cenqhomes Development Corporation

December 6, 2021 CERTIFICATE OF TAX EXEMPTION NO. BOI-LEH-439-21 CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN : This certifies that CENQHOMES DEVELOPMENT CORPORATION with Taxpayer Identification Number (TIN) _______________, is exempt from income tax and creditable withholding tax on its income received directly in connection with its economic and low-cost housing project (horizontal), TERRAVERDE RESIDENCE PHASE 2-Brgy. Bancal, Carmona, Cavite , consisting of 1,267 house and lot units used solely for family home or dwelling purposes, located at Brgy. Bancal, Carmona, Cavite , a project duly registered with the Board of Investments (BOI) under Certificate of Registration No. ________ dated May 25, 2017 , for a period of 3 years and 7 months beginning from June 01, 2017 to December 31, 2020 , 1 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 VAT-exempt under Section 109 (1) (P) of the National Internal Revenue Code (Tax Code) of 1997, as amended. Provided, however, that beginning January 01, 2021, the VAT exemption shall only apply to sale of house and lot and other residential dwellings 2 with selling price of not more than P3,199,200.00. 3 However, the sale of house and lot units in excess of the 1,267 house and lot units registered with the BOI, if any, including those units used for commercial purposes such as leasing, retail stores, offices, etc. shall be subject to the payment of appropriate taxes under the Tax 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 6th day of December, 2021. (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, TERRAVERDE RESIDENCE PHASE 2-Brgy. Bancal, Carmona, Cavite , consisting of 1,267 house and lot units used solely for family home or dwelling purposes located at Brgy. Bancal, Carmona, Cavite . Such exemption shall not cover revenues from units with selling price exceeding P2,000,000.00. Moreover, the 1,267 house and lot units covered by License to Sell No. _______ shall not be sold for more than P1,700,000.00 per house and lot. 2. The Company is obligated to construct and sell 1,267 units based on the following schedules/sales revenue: Year Volume (No. of units) Value (Php) 1 463 ____________ 2 607 ____________ 3 197 ____________ Total 1,267 ____________ 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. 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 Tax 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 EO No. 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 Tax Code of 1997, as amended, and implemented by 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. 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 Tax Code of 1997, as amended. Footnotes 1. The ManCom and Board, in its meeting of 08 April 2021 and by virtue of Resolution No. 12-08, Series of 2021, APPROVED the firm's request for extension of ITH entitlement period from May 2020 to December 2020 for its registered project with BOI CR No. 2017-136 dated 25 May 2017, pursuant to Article 7 (14) (b) of E.O. 226, as the project has not fully enjoyed the incentives granted to it for reasons beyond the firm's control due to COVID-19 that caused delays in the release of loans from Pag-IBIG Fund, frequent closure of Registry of Deeds, lockdowns imposed by the National Government and abrupt imposition of the community quarantine. 2. Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963. 3. As adjusted using the 2010 Consumer Price Index values pursuant to RR No. 8-2021 dated June 11, 2021. 4. An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Administered by Investment Promotion Agencies.