BIR Ruling No. 311-2016

REPUBLICOF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Section 32,RA No.7279

BIR Ruling No.053-15 #311-2016 6-28-2016

DON VICENTE VILLAS HOMEOWNERS ASSOCIATION INC.PH-7 Brgy.Pulo,Cabuyao,Laguna

AttentionDANILO F.PALMA

President

Gentlemen:

This refers to the letter of Ma.Ana R.OliverosPresident of the Social Housing Finance Corporation (SHFCdated September 15.2015.endorsing the sale transaction between Roderick B.Bella and Don Vicente Villas Homeowners Association,Inc.Ph- 7 for exemption from the payment of Capital Gains Tax and other taxes in accordance with the Republic Act (RA No.7279.otherwise known as the Urban Development and Housing Act of 1992

Documents submitted disclose that Roderick B.Bella (hereinafter referred to as Landowner is the registered owner of a parcel of land, identified as Lot l-A of thc subd.Plan Psd-04-1955332,being a potion of Lot 1,Psu-69751 covered by Transfer Certificate of Title (TCT No. issued by the Registry of Deeds for the Calamba City.The aforesaid property is situated at Brgy.Pulo.Cabuyao.Laguna with an area of Twelve Thousand Eleven square meters(12,011 sq.m.)more or less.Don

Vicente Villas Homeowners Association,Inc.Ph-7 (TIN . on the

Use Regulatory Board HLURB.On April 20.2015,the parties executed a Deed of other hand. is a homeowner's organization duly registered with the Housing and Land Absolute Sale whereby the Landowner, through his Attorney-in-Fact. Roland Rex B Bella, transferred and conveyed the subject property to Don Vicente Villas

Homeowners Association Inc. Ph-7 at an agreed price of

Pursuant to the certification issued by SHFC.5,381 sq.m. out of 12.011 sq.m.covered a subsidiary of the National Home Mortgage Finance Corporation (NHMFC) Documentary Stamp Tax (DST) due on the sale has been paid. Project and shall be proportionately distributed to the association's qualified member- beneficiaries2.For this purpose.Don Vicente Villas Homeowners Association.Inc.Ph- 7 secured a housing loan under the CMP.a financing assistance program of the SHFC by TCT No. actually comprises a Community Mortgage Program (CMP

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Five Thousand Three Hundred Eighty One square meters 5.381 sq.m.) under the CMP at an agreed price of see Annex for the masterlist of qualified beneficiaries ng the remanug area was acqured by Gureet ouyers

Don Vicente Villas Homeowners Association, Inc. Ph-7 Page 2 of 5 #311-2016 6-28-2016

In support of its request,Don Vicente Villas Homeowners AssociationInc. Ph 7 has completely submitted on September 18, 2015 the following documents:

2 Certification of the President of the SHFC that 5,381 sq.m. portion of the 1 SHFC letter application for tax exemption

subject property qualifies and is actually a CMP project; 3SHFC Letter of Guaranty No. 4 Certified true copy of the Deed of Absolute Sale to the Community

Association: 5 Certified true copy of the Articles of Incorporation of the Community

Association: 6Certified true copy of the Masterlist of Qualified Beneficiaries duly certified

7 Certified true copies of the TCT and Latest Tax Declaration of the Property by the SHFC

8 Certified true copy of the Location Plan of the Lot Sold to the Community Sold to the Community Association;

Association: 9) TIN ID/BIR Certificate of Registration of the seller and the Homeowner

10)Other pertinent documents Association; and

In reply, please be informed that pursuant to Section 32 of RA No.7279. pertinent portions of which state that:

"Sec. 32. Incentives. To encourage its wider implementation. participants in the CMP shall be granted with the following privileges or incentives:

XXX XXX XXX

b Properties sold under the CMP shall be exempted from the capital gains tax; and"

the landowners who sold their properties for use in a socialized housing project are exempt from the payment of capital gains tax.

Homeowners Association,Inc. Ph-7 of 5.381 sq.m. out of 12,011 sq.m.covered by TCT No. Such being the case, the sale by Roderick B. Bella to Don Vicente Villas is exempt from the capital gains tax.

Homeowner's Association shall be annotated by the Register of Deeds having 27, 2015) jurisdiction over the property to the effect that the said property shall be used for socialized housing pursuant to RA No.7279. (BIR Ruling No.053-15 dated February of sale. a lien on the Certificate of Title of the land to be issued in the name of the Upon issuance of this letter of exemption,and upon registration of the document

exemption clause in Sec.32 of RA 7279. Accordingly,the landowners are liable to pay However.the documentary stamp tax is not one of the taxes covered by the tax

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Don Vicente Villas Homeowners Association, Ine. Ph-7 Page 3 of 5 #311-2016 6282016

imposed under Section 196 of the Tax Code of 1997, based on the consideration with Section 6 (E) of the said Code, whichever is higher. the documentary stamp tax on the document conveying the afore-stated property contracted to be paid for such realty or its fair market value determined in accordance

It is, however, understood that this ruling is never intended and shall not be

construed as giving authority to the concerned Register of Deeds to effect transfer of the land title in the name of the buyer without the necessary certificate of authority to register issued by this Bureau. In this regard. this ruling shall be presented to the Revenue District Office (RDO) concerned in order for the latter to issue the Certificate

Authorizing Registration (CAR).The CAR shall only be issued after the submission of the requirements provided under RMO15-2003.BIR Ruling No. 053-15 dated

February 27,2015)

Notwithstanding the foregoing, the Bureau of Internal Revenue shall conduct verification and post-audit that the actual occupants of the property transferred under the CMP are qualified beneficiaries and therefore. the sellers are entitled to exemption from capital gains tax or income tax imposed under the Tax Code of 1997.

This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then

this ruling shall be considered as null and void.

Very truly yours.

KIM S.JACINTO-HENARES Commissioner of Internal Revenue K-1-JRC 042408

JUN 2 7 2016

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#312-2016 68016 Don Vicente Villas Homeowners Asocation ne.Ph

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DON VICENTE VILLAS HOMEOWNERS ASSOCIATION INC.PH-7

Brgy.Pulo.Cabuyao.Laguna

Blk Lot Total Area

Name of Beneficiary No. No. (sq.m.)

2 SAMBO RAMOS DOMINGO IR CHRISTOPHER LANDICHO QUIMBAO X 3 8.3 50 4

10 13 H S 6 8 0 RAMOS PADILLA DIPLOMO DIPLOMO ROSSIN LEGO PAUYOIR AVILA PINGOL ABIHAY TABELISMA ANNALIZA DANILO CHERRY ANDREW DANILO MELANIE GAVINO AMY MARICHU MICHAFI FEDERICO LANDICHO REYES LEGASPI NATIONAL LFGASPI ALAON ARELLANO ASAYTONO TONGOL BELARDE BUOT 1 X 1 10 1 16 I 1 9 S 59 4 59 4 59 4 59 59. 59.4 59.4 59. 594 59.44 59.4

1 A 11 1 UGAN SILAO MIRALLES ABA ASPACIO ANALIZA ROGELIO BRAYAN MARISSA HANELLIA CALBO LEGO CANANAS DEQUET PAMINTUAN I 1 19 20 2 2 I 9 59 4 59 9 4 59 44

20 21 2 19 CAMACHO JARQUE ORUUELA ALATA FERDINAND MELCHOR ROSANNA THELMA RATIO CAMANTIGUE ORIJUFLA DELA CRUZ 23 2 2 28 59. 59. 59 4 59.44

23 2 25 21 MARQUFZ SOLO FERASOL MORAL BILLY MYRNA CHONA ROGELIA FURATERO BOTONA ARFLLANO MIRASOL 3 29 31 32 59 59 44 59.44 59.4

2 TUD. MICHAFL ANGELO TAPEN 33 59.44

29 28 30 Sot o. SOLO. ANOSO REY JOPHET IRIS LAPUZ BOTONA BOTONA 2 3 36 59. 59.44 68.73

31 VALENTON PAULINO PINGOL 2 O 59. 44 32 MENDOZA LUZVIMINDA BANGCOLITA 2 59.44

33 BUENO JIONA NABARTE 2 59.44 3 TICA SALVADOR ALIPALA 2 1g 59 4 3 e SABOSAP TORENTE FUIEN GEMMA GARCIA ARIAGA 2 2 20 21 9.4 59

3 ROSALES WILMA FACTOR 2 2 59 44 38 DELACERNA PAULITO JR BON 2 23 39.4 39 TICA CRISTINA ALIPALA 2 33 59 O0 TICA GUILLFRMO ALIPALA 2 3S 59.44

A TICA EDENCIA RAMOS 2 36 59 4 A2 LUCING MARY ANN BATUCABE 2 31 59

43 MARAVE SILVINO DE CASTRO 2 3 . 44 LUCING. RAMIL BATUCABE 39 65.00

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