CSE Builders

July 7, 2021 CERTIFICATE OF TAX EXEMPTION NO. NSH-229-2021 CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN : This certifies that CSE Builders ,an entity engaged by the Camp Magsaysay Place Homeowners Association, Inc. (CMPHOAI) , 1 is exempt from project-related income taxes and creditable withholding tax 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 the construction/development of 800 socialized housing units in Camp Magsaysay Place located in Brgy. Kalikid Sur, Cabanatuan City, Nueva Ecija, intended for the qualified members of CMPHOAI composed of members/families of the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) financed by the National Housing Authority (NHA) . Moreover, the delivery of 800 socialized housing units shall be exempt from value-added tax (VAT) pursuant to Section 109 (1) (P) of the National Internal Revenue Code (Tax Code) of 1997, as amended, provided that the selling price thereof does not exceed P3,199,200.00 2 per house and lot package; provided further, that beginning January 01, 2021, the exemption from VAT shall only apply to sale of house and lot and other residential dwellings. 3 cSEDTC However, the purchases of goods/articles by CSE Builders shall be subject to VAT, even if the said purchases are to be used for the socialized housing project, since VAT is an indirect tax which can be passed on by the seller of the goods/services. It shall be understood that CSE Builders must issue VAT-exempt official receipts on its gross receipts from the said socialized housing project. 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 7th day of July, 2021. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue Footnotes 1. Per Contract Agreement dated April 6, 2021. 2. As adjusted in 2011 using the 2010 Consumer Price Index values per Revenue Regulations No. 8-2021. 3. Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963.