Prohomes Development, Inc.

April 20, 2021 CERTIFICATE OF TAX EXEMPTION NO. PSH-127-21 CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN : This certifies that PROHOMES DEVELOPMENT, 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 RA No. 10884 (Balanced Housing Development Program Amendments) dated July 17, 2016, on its income received directly in connection with sale of socialized house and lot units for residential and dwelling purposes to qualified beneficiaries in Forever Homes Lumbia ,consisting of 326 1 house and lot units located at Brgy. Lumbia, Cagayan de Oro City ,a project duly registered with the Housing and Land Use Regulatory Board (HLURB) under Certificate of Registration No. 26249 and License to Sell No. 033719. 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 is not one of the taxes covered by the tax exemption clause in Section 20 of RA No. 7279. Such being the case, the owner/project developer/seller shall be liable to pay the documentary stamp tax on the documents conveying the properties imposed under Section 196 of the Tax 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 said Code, whichever is higher. Likewise, lots/units classified as Economic Housing, not being covered by RA 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 enumerated above. cSEDTC 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 20th day of April, 2021. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ATTACHMENT TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION 1. The exemption from income, creditable withholding taxes and VAT covers only income directly attributable to the revenues generated from the project, Forever Homes Lumbia consisting of 326 house and lot units, located at Brgy. Lumbia, Cagayan de Oro City .Such exemption shall cover revenues from 326 house and lot units with selling price not exceeding P480,000.00 per house and lot packages. 2. The developer shall submit the sworn statement of the buyer that he is eligible as a socialized housing beneficiary provided under Section 5 (A) of R.R. No. 11-97 to the BIR during the processing of the Certificate Authorizing Registration (CAR) for the transfer of the socialized housing unit. 3. It is understood that the Certificate Authorizing Registration (CAR) shall only be issued after it is established upon proper verification by the Revenue District Officer (RDO) concerned that, considering the rules on valuation of real property, the actual selling price per sale transaction of the house and lot packages in this case does not really exceed P450,000.00 on the 303 house and lot units and 480,000.00 on the additional 23 house and lot units. a. The following are to be sold as socialized house and lot units with maximum price of P450,000.00 per unit: Saleable House and Lot Package Three Hundred Three (303) namely: Block 1-Lots 1 to 8; Blk. 2-Lots 2 to 29; Blk. 3-Lots 1 to 25; Blk. 5-Lots 3 to 24; Blk. 6-Lots 3 to 26, 28; Blk. 7-Lots 3 to 29; Blk. 8-Lots 3 to 32 & 34; Blk. 9-Lots 3 to 36; Blk. 10-Lots 3 to 38; Blk. 16-Lots 3 to 24, 26, 29, 31 & 32; Blk. 17-Lots 5 to 19; Blk. 18-Lots 2, 3, 5 to 9; Blk. 21-Lots 2, 3 & 4; Blk. 23-Lots 2 to 16, all in Pcs-10-005204. b. The following additional twenty three (23) socialized house and lot units are to be sold with maximum price of P480,000.00: SDAaTC Block no. Lot no. Lot area (sq.m.) Block no. Lot no. Lot area (sq.m.) 3 26 67 9 1 88 5 25 51 9 2 86 5 26 70 9 37 49 6 27 65 9 38 68 6 29 49 10 1 88 7 1 75 10 2 86 7 2 74 10 39 63 7 30 73 10 40 83 7 31 56 23 1 52 8 1 64 23 17 48 8 2 63 Total 1,573 8 33 78 8 35 77 Footnotes 1. 303 house and lot units shall not be sold for more than P450,000.00 per unit and the additional 23 house and lot units shall not be sold for more than P480,000.00 per unit as enumerated and identified under items 3 (a) and (b) of the Terms and Conditions of this Certificate of Tax Exemption. 2. Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963.