SL Harbor Bulk Terminal Corporation

February 6, 2020 CERTIFICATE OF TAX EXEMPTION NO. BOI-OP-150-20 CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN : This certifies that SL HARBOR BULK TERMINAL CORPORATION , with Taxpayer Identification Number 000-000-000-000, is exempt from income tax and creditable withholding tax on its income received directly in connection with its petroleum project, Oil Terminal in Harbour Center, North Harbor, Tondo, Manila for Storage and Bulk Marketing of Petroleum Products under the Downstream Oil Industry Deregulation Act (R.A. 8479) n 17 Storage Tanks with 35,000 liters combined capacity, a project duly registered with the Board of Investments (BOI) under Registration No. 2013-068 dated March 14, 2013, for a period of 5 years without extension beginning from December 2013 or actual start of commercial operations, whichever is earlier but in no case earlier than the date of registration of the project with the BOI, pursuant to Executive Order No. 226, otherwise known as the "Omnibus Investments Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations No. 2-98, as amended. The Income Tax Holiday (ITH) does not cover the revenues generated from the sale of petroleum and non-petroleum products by gasoline stations that the firm services. It shall be limited only to the revenues generated from the registered project (17 Storage, and Bulk Marketing of 35,000,000 Liters of petroleum products covered by Import Entry Declaration or sourced locally from new industry participants) pertaining to the capacity of the registered terminal. For this purpose, the enterprise shall submit audited segregated income statements for this registered project. Net income from operation of the registered activity shall be certified under oath by the Chief Executive Officer (CEO) or Chief Financial Officer (CFO). HTcADC 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, to all other applicable taxes not enumerated 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 February, 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 sales of registered project (17 Storage, and Bulk Marketing of 35,000,000 Liters of petroleum products covered by Import Entry Declaration or sourced locally from new industry participants) pertaining of the capacity of the registered terminal. CAIHTE 2. The Company is obligated to comply based on the following schedules/sales revenues: Year 1 2 3 4 5 Number of Tanks Diesel Gasoline 9 8 17 9 8 17 9 8 17 9 8 17 9 8 17 Tank Capacity (KL) Diesel @2,500 KL/Tank Gasoline @1,618 KL/Tank Total* 22,500 12,944 35,000 22,500 12,944 35,000 22,500 12,944 35,000 22,500 12,944 35,000 22,500 12,944 35,000 Turn-around per year 7 8 9 10 11 Total Annual Storage Capacity 245,000 280,000 315,000 350,000 385,000 Capacity Utilization 98% 98% 98% 98% 98% Sales Volume (KL) Storage (30%) Bulk Marketing (70%) 72,030 168,070 240,100 82,320 192,080 274,400 92,610 216,090 308,700 102,900 240,100 343,000 113,190 264,110 377,300 Sales Volume (Php) Storage Thruput (rental fee) P/liter Sales Value (PhP'000) __ _________ __ _________ __ _________ __ _________ __ _________ Bulk Marketing Selling Price P/liter Sales Value (Php'000) ____ _________ ____ _________ ____ _________ ____ _________ ____ _________ TOTAL SALES VALUE (PHP'000) _________ _________ _________ _________ _________ 3. The ITH shall be limited only to the revenues generated from the sales of registered project (Storage, and Bulk Marketing of 35,000,000 Liters of petroleum products covered by Import Entry Declaration or sourced locally from new industry participants) pertaining to the capacity of the registered terminal. Revenues derived from the sale of petroleum and non-petroleum products by gasoline stations that the firm services shall not be entitled to ITH. 4. The Company's entitlement to ITH for its BOI-registered power plant 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, 1 the Company is required to file its tax returns and pay its tax liabilities, on or before the deadline as provided under the 1997 Tax Code, 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 thirty (30) days from the deadline for filing of tax returns and payment of taxes. 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 Revenue Regulations (RR) No. 2-98 , as amended. aScITE 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. An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Administered by Investment Promotion Agencies. n Note from the Publisher: Written as "R.A. 8478" in the original document.