BIR Ruling No. 318-2016

REPUBUCOETHEPHICIPPINES

DEPARMFNTOF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

RA No.7279 BIR Ruling No.294-14

#318-2016 6-28-2016

INTEGRATED SETTLERS ASSOCIATION INC.OF TORILINC

Rovical Village.DaliaoToril. Davao City 8000

Attention: Mr.Neptali C. Batucan, Jr.

President

Gentlemen:

This refers to your letter dated March 24.2014, requesting Certificate of Tax

Exemption from payment of capital gains tax on the sale of a land containing a total

area of Twenty Six Thousand Five Hundred Twenty Four (26,524) square meters,more

or less.covered by Transfer Certificate of Title TCTNo. oursuant to

Republic Act (RA No.7279,otherwise known as the Urban Development and

Housing Act of 1992

Documents submitted show that Angela Calizo-Lam (married to Eduardo

Lam),Emmanuel B.Calizo married to Purita Jalandoni,and Roque Vicente B.

Calizo (married to Melva Mabaslay Durico, (hereinafter referred to as Landowners)

are thc registered owners of a parcel of land,without improvement.containing a total area of Twenty Six Thousand Five Hundred Twenty Four 26,524) square meters,more or less,covered by Transfer Certificate of Title(TCT No. situated in Brgy. Daliao. City of Davao. The Integrated Settlers Association Inc. of Toril, Inc.

registered with the Securities and Exchange Commission (SEC) with Registration No. ISATI(TIN: dated May 21,1993 and enrolled with the Housing and Land Use on the other hand, is a homeowners organization

Regulatory Board (HLURB on October 11.2010.On January 7.1997.the landowners vendors and ISATI,represented by its then President,Edgar Gajunera and Secretary Angelyn Catulpas,executed a Deed of Conditional Sale whereby the former agreed to sell the above-described parcel of land to ISATI(vendec at

Ter square meter or at a total agreed price of Philippine CurrencyThat in acquiring the said property,ISATI was assisted by the City Government of Davao through its City Mayor Rodrigo R. Duterte and shouldered a portion of the purchase price in an amount

equivalent to per square meter for a total amount of

that the remaining balance of the purchase price in the amount of

shall

be paid by ISATI for a period of Three (3)Years beginning from March 12,1997;that

On May 272016an Affidavit wa excuted by Neptai Batucan tPreident of Integrated Settlers Assocation ncorporated f Inc.are one and the same associat on. Toril, Inc. that the name Integrated Settlers Asscciation Incorporated of Toril, Inc and integrated Settlers Association of Tori

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document denominated as Deed of Conditional Sale dated January 7.1997 the landowners/vendors have already died and their respective estate tax clearances were properly issted.On March 10.2014,a Deed of Confirmation of Sale was executed among the heirs confirming the sale executed by their respective predecessors in the

City Planning and Development Coordinator, City of Davao dated August 4.2014. loan under the ULRP which was financed by the City Government of Davao as certified by the Officer-In-Charge. Housing and Homesite Development Division Office of the approved the purchase of the said property for the establishment of a socialized housing project under the Urban Land Reform Program (ULRP) of the City Government of ULRPof the City Government of Davao and has availed a financial assistance thru a City Mayor.City of Davao,Sangguniang Panlungsod No.9065-95 series of 1995 Davao for the members of INTEGRATED SETTLERS ASSOCIATION INC.OF TORILINC.;and that ISATI is a project beneficiary of Urban Land Reform Program Pursuant to a Certification dated November 18.2009 issued by the Office of the

No.7279. pertinent portions of which state that In reply,please be informed that pursuant to Section 20 of Republic Act (RA

Socialized Housing -To encourage greater private sector participation shall be extended to the private sector: in socialized housing and further reduce the cost of housing units for the benefit of the underprivileged and homeless, the following incentives "Sec. 20. Incentives for Private Sector Participating in

XX XX XXX

( Capital Gains Tax on raw lands used for the project; Exemption from the payment of the following. XXX XXXX XXXX

XXX XX XXX

capital gains tax.(BIR Ruling No.294-14 dated July 23,2014 are exempt from the payment of the capital gains tax.Such being the case.the sale by of Twenty Six Thousand Five Hundred Twenty Four (26.524) sauare meters, more or less.covered by Transfer Certificate of TitleTCT No. Angela Calizo-Lam,Emmanucl B.Calizo,and Roque Vicente B.Calizo.to ISATl The landowners who sold their property for use in a socialized housing project - is exempt from the

socialized housing pursuant to RA No.7279.(BIR Ruling No.294-14 dated Julv 23 jurisdiction over the property, to the effect that the said property shall be used for Homeowners Association shall be annotated by the Register of Deeds having of sale,a lien on the Certificate of Title of the land to be issued in the name of the 2014) Upon issuance of this letter of exemption,and upon registration of the document

exemption clause in Sec.20 of RA 7279.Accordingly.the landowners are liable to pay the documentary stamp tax on the documents conveying the afore-stated property imposed under Section 196 of the Tax Code of 1997.based on the consideration However.the documentary stamp tax is not one of the taxes covered by the tax

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inegedSetter Associin InofTon Page 3 of 7 #319.2016 0

contracted to he paid for such realty or its fair market value determined in accordance

with Section 6E of the said Code,whichever is higher.BIR Ruling No.294-14 dated

July 23.2014

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 RMO 15-2003.(BIR Ruling No.294-14 dated.July 23

2014

Notwithstanding the foregoing, the Bureau of Internal Revenue shall conduct verification and post-audit that the actual occupants of the property transferred under the ULRP are qualified members-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 bc 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-I 042384 JUN 2 7 2016

Integrated Settlers Association Inc.of Toril,Inc 318-2016 6-2016

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Integrated Settlers Association Inc.of Toril, Inc. Rovical VillageDaliaoToril,Davao City Master List of Members ANNEX A

73 Abadia.Alelih

Abellanosa, Elaisa Jade Abellanosa,Noeme

6 5 Abellanosa,Roberta Abibiner, Corazon Abregana,Alan

Adal.Arsenio.Jr. Abregana, Sofronio

9 Alcaria,Marvin 10 Alcayde,Calixto I1 12 AllanDanilo AlvarezElody 13 AmancioNelia 14 15 Amparado,Rowena Apostol,Lolita 16. Ardepolla,Juneva

2 17 20 18. 19 22 Bale, Jay Baquiano,Cresilda Batucan,Marilyn AugisDelia Baricaua,Teresita BallezaMario 23 BokoGloria 24 Bonghanoy, Mamerto

25 Buligan Juli 26 Cabanas,Glenda

28 2 Cabo, Fe Cael.Venancia 29 Calzada,Imelda 30 Calzada,Remedios 31 Campana.Estrella 32 33 Campana,Remedios Canonoy.Wilson 34 Capuyan,Teofilo

31 35 37 38 39 Catam-lsan.Ritchel Carcueva.Rosalim Canoy,Catalino Catam-Isan,Delia Catam-Isan. Fd Micahel

40 42 A Chen.Mayrielan Catulpos,Angelyn CatulposMaria Teresa

43 Chio. Joven

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44 Coloma.Irma 45 Corcuera.Oliver 46 CorcueraRachel 47 Cristino.Aida

48 Cudiamat, Jean 49 50 Cudiamat. Reyanaldo Cudino, Lani 51 52 Culiao,Gonoforte.Sr. Domingcil, Jefrey 53 Donos Lilian

55 54 Edilo.Baselisa EmataErwin 56. EsposadoManuel 57 58 59 Fortuna. Sheryl Joy Flores.Felicidad Gadingan, Candido 60 Gajunera. Concepcion 61 GajuneraEdgar 62 Gajunera,Edwin 63. 64 GajuneraLiezel Gajunera.Porferio 65 Galvez,Rogelio

67 68 19 TO Gil,Cecilia GloriaGina Garsuta.Gina Gocotano, Lauriano Gomez,Paul,Jr.

71 Gonzaga.Maricel

13. 1 15 16 12 Hormillada.Roger JuatonEmelie Juaton.Rufina Itil.Melodina Julian,Marilyn

1. Layague.Helen Kojima,Annaliza

19 Layague,Nelson 80 Ligan,Victoria 81 LlesisLeonardo

83 82 84 85 Lumantas,Gerry Mabanag.Ludem Lobrigas.Teresita Limantas,Lenny

86 8 Mangle.Gloria Malaque.Rey

89 o0 88 90 Manon-og.Beatriz Marganitez, Remegelio Manliquez.Placido Manon-og.Wilma

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93 9 94 Mesina.Jenny Masanegra,Ana Medina.Rogelio

96 98. 99 100 95 1 Mier.Eve Rose MesinaRue Mirambel.Luisa Morandante,Eulita Morata,Teresita Murillo. Constancio 10 NaingueLinda/Abelo,Jerrybe 102. Navales.Juvelyn 103 104. NerieAlfonso Niadas, Sergio

2 105. 106 107 108. 109. 110 I I3. 114 115 Nortiga.Gloria Nurez. Cherry OndeEleuterio Oranza,Fatima Oranza,Mary Joy Ortiz,Marietta PerezEunice Polenio,Charles OrocioElba Pacatang.Vilma Pagdatu,Cristita

116 17. T21 118. 119 120. I22 123 124. Poster,Evangeline RojoEdgar Romero,Mary Ann Rosales,Emilita Rosales,Mario Retiza.Edgar Roxas,Filomena Sayago.Cecilia Semil,Anariza

126. 128. 125. 17 129 Sicad,Margie Sicuya, lan Sicuya, Maria Mediatrix Tabay,Teresita Tabay,Rodolfo

132 134 130 131 133 135 Tumbaga, Aries Troy Vallente,Eduardo Vallente,Sheila TiloMarlyn Tingson. Fe Camila Tizon,Felipe

136. Ventinella.Henry

139 137 138 VilalonghaJulie Marie Villame,Elpidio Vergara.Gemma

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140 A Villota.Ernesto Villame.Joce

142 143 144 Boko.Felicisima YhazMilagros Yhanez. Marcian

45 Danng Lea

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