SL Harbor Bulk Terminal Corp.

December 29, 2020 CERTIFICATE OF TAX EXEMPTION NO. BOI-OP-695-20 CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN : This certifies that SL HARBOR BULK TERMINAL CORPORATION , with Taxpayer Identification Number ____________, is exempt from income tax and creditable withholding tax on its income received directly in connection with its project, Bulk Marketing of Petroleum Products under the Downstream Oil Industry Deregulation Act "RA 8479" (Existing Industry Participant with New Investments through Construction of New Oil Terminal in Tagoloan, Cagayan De Oro-172, 000 KL registered capacity) , a project duly registered with the Board of Investments (BOI) under Registration No. _______ dated July 12, 2016, for a period of 5 years without extension, beginning from September 02, 2016 to September 01, 2021 , 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 sales of registered project (New Oil Terminal with a capacity of 172,000 KL-Tagoloan, Cagayan de Oro, Misamis Oriental) for bulk marketing of petroleum products. 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 29th day of December, 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 (New Oil Terminal with a capacity of 172,000 KL-Tagoloan, Cagayan de Oro, Misamis Oriental) for bulk marketing of petroleum products, subject that the following conditions should be provided: a. Importation should be covered by Import Entry Declaration or sourced locally from new industry participants pertaining to the capacity of the new LPG storage tanks; b. Prices should be at ex-depot prices and importation documents for petroleum products should reflect ownership by SL Harbor oil terminal in Tagoloan, Cagayan de Oro, Misamis Oriental; c. The enterprise shall be required to submit delivery receipt or purchase invoice to be counterchecked against the sales book of the registered project. 2. Revenues derived from the sale of petroleum and non-petroleum products by gasoline stations that the firm services shall not be entitled to ITH. 3. The Company is obligated to comply based on the following schedules/sales revenues: Year Nature of Services Volume of Number of Services Rate (Php) TOTAL REVENUE Php Billion Gross Tank Capacity (Liters) Total Annual Projected quantity to be sold (Liters) 1 Bulk Marketing of Petroleum Products 172,000,000 ______ 2 Bulk Marketing of Petroleum Products 172,000,000 ______ 3 Bulk Marketing of Petroleum Products 172,000,000 ______ 4 Bulk Marketing of Petroleum Products 172,000,000 ______ 5 Bulk Marketing of Petroleum Products 172,000,000 ______ 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 receive 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. 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.