Primerose Properties & Development, Inc

August 24, 2021 CERTIFICATE OF TAX EXEMPTION NO. PSH-314-2021 CERTIFICATE OF TAX EXEMPTION TO ALL WHOM IT MAY CONCERN : This certifies that PRIMEROSE PROPERTIES & DEVELOPMENT, INC. , with Taxpayer's Identification Number _______________, 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 its sale of socialized house and lot units for residential and dwelling purposes to qualified beneficiaries in Villa Norisa II Subdivision ,consisting of 129 socialized house and lot units, located at Brgy. Masalukot I, Candelaria, Quezon, a project duly registered with the Housing and Land Use Regulatory Board (HLURB) under Certificate of Registration No. ______ and License to Sell No. _____ provided that the ceiling price per house and lot package does not exceed P450,000.00. 1 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 2 and below, is VAT-exempt under Section 109 (1) (P) of the National Internal Revenue Code of 1997 (Tax Code), as amended. Provided, however, that beginning January 1, 2021, the VAT exemption shall only apply to sale of house and lot and other residential dwellings 3 with selling price of not more than P3,199,200.00. Nonetheless, it is observed that documentary stamp tax (DST) 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 DST on the documents conveying the properties imposed under Section 196 of the Tax Code, 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 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 or 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 24th day of August, 2021. (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 129 socialized house and lot units in Villa Norisa II Subdivision ,located at Brgy. Masalukot I, Candelaria, Quezon . 2. The developer shall submit the sworn statement of the buyer that he is eligible as a socialized housing beneficiary under Section 5 (A) of Revenue Regulations (RR) No. 11-97 to the BIR during the processing of the Certificate Authorizing Registration (CAR) for the transfer of the title 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 socialized house and lot packages in this case does not really exceed P450,000.00 per house and lot unit. 4. List of Non-saleable lots per HLURB License to Sell No. ______ granted by the HLURB, Region STR, Dencris Business Center, Brgy. Halang, Calamba City, Laguna to wit: Non-saleable lots: Open Space Block 3 & Block 12, Lot 22 All Road Lots & Alleys Excluded Area Block 11; Block 1, Lot 22 Footnotes 1. The maximum selling price is pegged at P450,000.00 based on HLURB License to Sell No. ________. 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.