E.C. Tanghal and Company, Inc

January 9, 2020 CERTIFICATE OF TAX EXEMPTION NO. PSH-004-2020 CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN : This certifies that E.C. TANGHAL AND COMPANY, INC. , with Tax Identification Number 000-000-000-000, is exempt from income tax and creditable withholding tax (CWT) pursuant to Section 20 (d) (1) of Republic Act (RA) No. 7279, as amended by R.A. 10884 (Balanced Housing Development Program Amendments) dated July 17, 2016, on its income received directly in connection with its sale of socialized housing units to qualified beneficiaries in Tanghal Country Homes Subdivision , consisting of 348 house and lot units , used solely for family home or dwelling purposes, located at Purok San Vicente, Brgy. San Isidro, Gen. Santos City , a project duly registered with the Housing and Land Use Regulatory Board (HLURB) under Certificate of Registration No. 27522 and License to Sell No. 031661 provided that the selling price of said housing units does not exceed P530,000.00 1 per house and lot packages. TIADCc 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. It is observed, however, that documentary stamp tax (DST) is not one of the taxes covered by the tax exemption clause in Section 20 of RA No. 7279. Thus, the documents conveying the properties shall be subject to DST imposed under Section 196 of the National Internal Revenue Code of 1997, as amended, based on the consideration contracted to be paid for such realties or on their fair market value determined in accordance with Section 6 (E) of the same Code, whichever is higher. Likewise, lots/units classified as Economic Housing, not being covered by R.A. No. 7279, shall be subject to the payment of appropriate taxes. 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 10th day of January, 2020. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue Footnotes 1. The maximum selling price pegged at P450,000.00 per house and lot based on HLURB License to Sell No. 031661 was adjusted to P530,000.00 per Certification issued by the HLURB dated December 11, 2018. 2. Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963.