BIR Ruling No. 263-2018

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City.

RA7279 BIR Ruling No. 100-11

# 263-2018 -23-2018

Ma. Luz S. Ysatam Project Manager Iloilo Project Office

Mandurriao, Iloilo City NHA Building, Brgy.Bakhaw

Dear Taxpayer:

known as the "Urban Development and Housing Act of 1992" March 28, 2016 requesting for an exemption from payment of donor's tax on the by expropriation of parcels of land pursuant to Republic Act (RA) No. 7279 otherwise Spouses Miguel Sampane Militar/Merlyn Balinton Diaz being tenant-families affected grant of free residential lot by the National Housing Authority (NHA) in favor of This refers to the indorsement of Revenue Region No. 11-Iloilo City dated

following restrictions and conditions, that the said properties shall be exclusively restrictions and conditions may be cancelled after ter (10) years from the issuance of covered by Transfer Certificate of Title (TCT) No. less; that on December 14, 2015, the NHA and Spouses Miguel Sampane Spouses Miguel Sampane Militar/Merlyn Balinton Diaz at no cost, subject to the utilized for residential purposes and not for any other purposes; that the lot or any part disposed of without written consent of NHA; that the above mentioned lot shall revert back to the NHA should the above conditions are violated; and the foregoing the TCT. parcel of land, identified as Lot 11, Block 38, of the cons. subd. plan, Pcs- of Deeds for Iloilo. The aforesaid property is situated at Brgy. Bolilao, Mandurriao. Militar/Merlyn Balinton Diaz executed a Deed of Conveyance and Acceptance of Free Residential Lot whereby NHA transferred and conveyed the subject property to thereof cannot be alienated, transferred, sold, leased or in any manner encumbered or Iloilo City with an area of Documents submitted disciose that the NHA is the registered owner of a square meters( issued by the Registry sq.m.), more or

otherwise known as the Urban Development and Housing Act of 1992 provides as follows: In reply, please be informed that Section 19 of Republic Act (RA) No. 7279,

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fees required for the issuance of transfer certificates of title." homeless, shall be exempted from the payment of all fees and payment of documentary stamp tax and registration fees, including The National Housing Authority, being the primary government agency in charge of providing housing for the underprivileged and charges of any kind, whether local or national, such as income and realty taxes. All documents or contracts executed by and in favor of the National Housing Authority shall also be exempt from the "Sec. 19. Incentives for the National Housing Authority.

capital gains tax, donor's tax including exemptions from documentary stamp taxes upon documents or contracts executed by and in favor of the NHA. (BIR Ruling No. taxation. Thus, at the time of the transfer of the above-stated property, NHA was not incentives to the NHA, as the entity tasked by the National Government to carry out the purposes of RA 7279, in the form of exemptions from the payment of all national taxes, such as income tax and the corresponding creditable withholding tax or the 100-11 dated April 6, 2011) liable to pay any kind of taxes, fees and charges. Section 19 of RA 7279, gives Under the foregoing provisions, NHA enjoys exemption from all forms of

Pertinent portions of RMC No. 42-01 dated October 5, 2001, provide, viz.:

payment of the following national internal revenue taxes: primary government agency in charge of providing housing for the underprivileged and homeless citizens shall be exempted from the "A. National Housing Authority (NHA) The NHA, being the XXX (2 Documentary stamp tax on sales transactions executed by XXX XXX

seller or buyer) that is dealing or transacting with the NHA. from documentary stamp tax extends to the other party (either and in favor of the NHA in connection with socialized housing contracts executed by and in favor of the NHA", the exemption projects. Since Section 19 of R.A. 7279 exempts "all documents or

exempt from the payment of documentary stamp tax under Section 196 of the Tax Code of 1997, as amended. (BIR Ruling No. 100-11 dated April 6, 2011) property in favor of Spouses Miguel Sampane Militar/Merlyn Balinton Diaz is of its socialized housing project extends to the other party (either seller or buyer) that deals or transacts with .the NHA. Consequently, the transfer by NHA of its real The exemption from documentary stamp tax of NHA in connection with any

the name of the buyer without the necessary certificaie of authority to register issued by this Bureau. In this regard, this ruling shall be presented to the Revenue District Registration (CAR) after the submission of the requirements provided under Revenue Memorandum Order (RMO) No. 15-2003. Office (RDO) concerned in order for the latter to issue the Certificate Authorizing giving authority to the concerned Register of Deeds to effect transfer of the lands in Please take note that this ruling is never intended and shall not be construed as

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not for any other purposes; that the lot or any part thereof cannot be alienated. be cancelled after ten (10) years from the issuance of the TCT. (BIR Ruling No. 100- name of Spouses Miguel Sampane Militar/Merlyn Balinton Diaz shall be caused to be annotated by the Register of Deeds having jurisdiction over the properties, to the transferred, sold, leased or in any manner encumbered or disposed of without written consent of NHA; that the above mentioned lot shall revert back to the NHA should the above conditions are violated; and the foregoing restrictions and conditions may effect, that the said properties shall be used for socialized housing pursuant to RA 7279, that the said properties shall be exclusively utilized for residential purposes and 11 dated April 6, 201 1 the document of sale, a lien on the Certificates or Title of the land to be issued in the Moreover, upon issuance of this letter of exemption, and upon registration of

However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. This ruling is being issued on the basis of the foregoing facts as represented.

Very truly yours.

K-1-JRC Commissioner of Internal Revenue CAESAR R. DULAY 013569