BIR Ruling No. 803-2019

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City

BIR Ruling No. 1100-2018 of 1997, as amended Republic Act No. 7279; Sections 32'(B) (7) (b) and 196 of the National Interna! Revenue Code 0803-Z015 DEC_1 7 2019

OFFICE OF THE PROVINCIAL GOVERNOR A

Antipolo, Rizal Rizal Provincial Government S

Attention: HON.REBECCA A. YNARES Governor Gentleme.::

'exempting the Rizal n@vincial Government from the payment of taxes and other fees for the transfer of soci zed lots of the Pinugay Resettlement Project to its qualified beneficiaries Housing Act o pursuant to Re This refers to your lotter dated August 13, 2019, requesting for the issuance of a ruling licActR 92 . 7279, otherwise known as the Urban Development and

authoiod to enter in consistir Provincia of soc Per Resoiut. n N lots of 928 lots rnment embr oac 2 nore ess, which are part of the 25-hectare land owned by the Rizal igay R in and covered by Transfer Certificate of Title (TCT) No. October 21, 2002, the Provincial Governor of Rizal is Hement Project located in Pinugay, Baras, Rizal the necessary documents of conveyance for the'sale

provide as folio RA No. 1085 In 're WS: Bal pl. --e be ini rmed that Sections 2 and 4 of RA No. 7279, as amended by ed H ousing Development Program Amendments) dated July 17, 2016,

hereinaft. be the pe compreh Se Tre the am D Coniinuing Urban O aS t Ite to "ndertar tration of Stat- TA Y Iicy and Program Objectives. -- It shall Development and Housing Program. cooperation with the private sector, a rich shall:

XXX XXX ( I OV Tt Ct th: capabili g urban deve pf local ient and housing programs and government units in

0803-2019

RIZAL PROVINCIAL GOVERNMENT (Pinugay Rescttlement Project) DEC 1 7 2019

the distribution of the socialized lots, shall not be subject to CGT; for it is only performing a Provincial Government of Rizal of socialized lots to its qualified beneficiaries is exempt from mandated governmental function of providing shelter to its qualified beneficiaries.2 government policies and objectives and extending essential services to the people, the and homeless citizens and to improve the capability of local government units in undertaking urban development and housing programs and projects, the distribution or transfer of the capital gains tax (CGT). The Provincial Government of Rizal, which is tasked to implement Provincial Government of Rizal is exercising governmental and not proprietary functions when it transfers the socialized lots of the Pinugay Resettlement Project to its qualified beneficiaries. RA No. 7279, as amended, to provide decent and affordable housing to the underprivileged Thus, in line with the foregoing and since it is a declared State policy as laid down in As a' political subdivision of the state which acts for the purpose of accomplishing

Revenue Code of 1997, as amended. subject to the documentary stamp tax (DST) imposed under Section 196 of the National No. 11-1997, as amended by RR No. 17-2001. The DST herein imposed shall be based on the actual consideration considering that one of the contracting parties is the Government pursuant to Revenue Memorandum Order (RMO) No. 41-1991 and Section 196 of the National Internal Internal Revenue Code of 1997, as amended, in accordance with Revenue Regulations (RR) However, the distribution or transfer of socialized lots to its qualified beneficiaries is

subject to the DST pursuant to Section 188 of the National Internal Revenue Code of 1997, as amended. Moreover, the notarial acknowledgment to i individual deed of conveyance is also

if upon inveetioation it yill be disclosed that the facts are different, then this ruling shall be considered null, and void. This ruling is beir ig issued on the basis of the foregoing faets as represented. However.

Very truly yours.

K-I-LMAT Commissioner of Internal Revenue CAESAR R.DULAY 031382

Peoples' Homesite and : fousin BIR Ruling No60-1.dateJuly 24,28. oraf .Court of elations.150 SCRA 310 (1987)

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