BIR Ruling No. 484-2021

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

LOEC202 "Republic Act (RA) No. 7279 BIR Ruling No.630-18 OT-4 8 -2 021

NAPICO HOMEOWNERS ASSOCIATION, INC. IX-B 133! Kamatis Street, NAPICO, Brgy. Manggahan Pasig City

Attention:Ms. Jocelyn P. Climaco President

Gentlemen:

Association, Inc. IX-B in favor of its qualified member-beneficiaries pursuant to Republic Act payment of taxes relative to the transfer of titles of land from NAPICO' Homeowners? (RA) No. 7279, otherwise known as the "Urban Development and Housing Act of 1'992." This refers to your letter dated January 28, 2021, requesting exemption from the

Association acquired a property through a loan under the Community Mortgage Program member-beneficiaries who actually bought the said parcel of land. Identification Number (TIN) Regulatory Board (HLURB) under Registration Number NCR-HOA 17-0286; that the (CMP) with the National Housing Authority (NHA) as Originator and was taken out/paid on November 26, 2004 as certified by the Social Housing Finance Corporation (SHFC) dated April 16, 2012; that the association is now the registeredowner of the above-mentioned parcel of land covered by Transfer Certificate of T'itle (TCT) No. of effecting the transfer/individualization of the said property to its Three Hundred Fifty (350) Thousand Twenty Eight (48,028) square meters; and that the association is now in the process It is represented that NAPICO Homeowners' Association, Inc. IX-B with Taxpayer is registered with the Housing and Land Use with an area of Forty Eight

qualified socialized housing member- beneficiaries of NAPICO Homeowners' Association. withholding tax (CWT) imposed under Revenue Regulations (RR) No. 2-98, as amended. the property to its member-beneficiaries who actually own the same. (BIR Ruling No. 630-18 dated April 11, 2018) of the National Internal Revenue Code (Tax Code) of 1997, as amended, or the creditable considering that said transfer is only a formality to finally effect the transfer of the subject through the association. In other words, the association is merely transferring the ownership of Inc. IX-B is not subject to either the capital gains tax (CGT) imposed under Section 27 (D)(5) property to its member-beneficiaries who actually bought the same from the former owner In reply, please be informed that the transfer of the subdivided lots in favor of the

of the Tax Code of 1997, as amended, since there is no donative intent on the part of association to donate the property to its members-beneficiaries, considering that it could not donate property the ownership of which already belongs to the members-beneficiaries themselves. Moreover, the said transfer is not subject to the donor's tax imposed under Section 99

realty sold are granted, assigned, transferred, donated or otherwise conveyed to a purchaser or documents subject to the documentary stamp tax (DST) imposed therein are those where the purchasers or to any other person or persons designated by such purchaser or purchasers, to the DST of P30.00 pursuant to Section 188 of the Tax Code of 1997, as amended.: thereby excluding from its purview the instant case. Accordingly, the transfer of the subdivided lots in favor of the beneficiaries is not subject to DST under Section 196 of the Tax Code of 1997, as amended. However, the notarial acknowiedgment to the deed of conveyance is subject Furthermore, under Section 196 of the Tax Code of 1997, as amended, the deeds or

NAPICO Homeowners' Association, Inc. IX-R Page 2 of 2 Date issued DEC 2-4 -2021 CTE No.C'T- $ 3 i - 2 2

It is, however, understood that this Ruling is never intended, and shall not be construed. as giving authority to the concerned Register of Deeds (RD) to effect transfer of the land titles in the names of the qualified socialized housing member-beneficiaries without the necessary Certificate Authorizing Registration (CAR) 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 CAR after the submission of the complete requirements provided under Revenue Memorandum Order (RMO) No. 15-2003.

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

Issued this day of DEC 2 4 2021 Mw

K-1-JAC Commissiongof Internal Revenue CAESAR R. DULAY 1'985 Q