BIR Ruling No. 273-2016

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OFINTERNALREVENUE

SX Quezon City

Bureau of Internal Revenue Ruling

Sec.19,RA No.9679 RMC 043-2011 #273-2016 Person to Contact:Chief. Law Division Tel. Nos. 926-55-36 / 927-09-63

Date:June 22, 2016

M.H.del Pilar cor Lopez Jaena,Tacloban City HOME DEVELOPMENT MUTUAL FUND-TACLOBAN BRANCH

Attention: ATTY. JOSE MAZO, JR.

Branch Attorney

Gentlemen:

This is in reply to your letter dated January 17, 2013 requesting for clarification

DEVELOPMENT MUTUAL FUND - TACLOBAN BRANCH (Pag-IBIG Tacloban regarding the exemption from Creditable Withholding Tax (CWT) of the HOME

Branch) in its sale of its ordinary assets.

It is represented that the Pag-IBIGTacloban Branch intends to sell a property covered

by Transfer Certificate of Title No. to Luthgarda C. Tupaz. In the course of

her preparation for the sale, Ms. Tupaz asked the local BIR examiner to compute the

Documentary Stamp Tax (DST) of the Deed of Sale. The examiner asked Ms. Tupaz for a

receipt/certificate of the CWT payment. Ms. Tupaz now insists that the Pag-IBIG Tacloban

Branch pay for the CWT on the sale. However, you claim that Pag-IBIG Tacloban Branch

is not liable to pay CWT by virtue of Section 19 of Republic Act No.9679

In reply, please be informed that the Bureau has already issued Revenue Memorandum

Circular No.043-2011 dated September 28,2011 which states:

For the information and guidance of all concerned. Section 19 of

Republic Act (RA) No. 9679 known as the "Home Development Mutual Fund

Law of 2009". otherwise known as Pag-IBIG (Pagtutulungan sa kinabukasan

Ikaw, Bangko, Industriya at Gobyerno) Fund", is hereby quoted as follows:

"SEC. 19. Exemption from Tax, Legal Process and Lien. - All laws

to the contrary notwithstanding. the Fund and all its assets and

properties, all contributions collected and all accruals thereto and

income or investment earnings therefrom, as well as all supplies,

equipment, papers or documents shall be exempt from any tax.

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#273-2016 6-22-2016

Hone Development Mutual Fund-Tacloban Branch Puge 2 of2

tax assessment against the Fund shall be null and void." assessment, fee, charge, or customs or import duty; and all benefit all kinds of taxes, fees or charges, and shall not be liable to apply to the Fund,unless it expressly revokes the declared policy of the State in Section 2 hereof granting tax exemption to the Fund. Any attachmcnts,garnishments,levy or scizure by or under any legal or equitable process whatsoever. either before or after receipt by the payments made by the Pag-IBIG Fund shali likewise be exempt from person or persons entitled thereto, except to pay any debt of the member to the Fund. No tax measure of whatever nature enacted shall

Rules and Regulations was made effective on January I, 2010 after its publication. RA No. 9679 was signed into law on July 21, 2009. The Implementing

Branch is exempt from the payment of CWT on its sale of its ordinary assets. From the foregoing, this Office hereby confirms your opinion that Pag-IBIG Tacloban

No. 9679, the other party to the taxable document who is not exempt, shall be the one directly liable to pay the said DST. Lastly, also by virtue of Section 19 of Republic Act No. 9679, the National Internal Revenue Code of 1997, as amended, must be paid. However, since Pag-IBIG Tacloban Branch is exempt from all kinds of taxes by virtue of Section 19 of Republic Act sale of the subject property is exempt from value-added tax. The Deed of Sale being a taxable document, the DST imposed under Section 196 of the

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. However.

Very truly yours.

K 1-nra Commissioner of Internal Revemue KIM S. JACINTO-HENARES 042245 JUN 2 0 2016