BIR Ruling No. 386-2022

A

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Certificate of Tax Exemption No.

CMPE'7 3 8 6 - 2 0 2 2

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

This certifies that the Deed of Absolute Sale dated March 04, 2021, entered into by and between:

Name of Seller TIN Address

CATMON HOMEOWNERS SAMAHANG MARALITA ASSOCIATION, INC.

-and-

Name of Buyer/Member Beneficiary TIN Address

SUSANA A. LORIAGA

over the parcel of land described below, to wit:

Transfer Certificate of Title No. Total Area (sq.m.) Area Transferred (sq.m.) Location

being a Community Mortgage Program (CMP), is not subject to either the capital gains tax (CGT) imposed under Section 27 (D)(5) of the National Intemal Revenue Code of 1997 (Tax) Code), as amended, or the creditable withholding tax imposed under Revenue Regulations No. 2-98, as amended, considering that the said transfer of property is made only as a formality to finally effect the transfer of the said property to its member-beneficiary who has made full payment of the purchased subdivided iot and actually bought the same from the former owner through the Association. In other words, the association is merely transferring the ownership of the property to its member-beneficiary who actually owns the aforedescribed lot.

Moreover, the said transfer is not subject to the donor's tax imposed under Section 98 of the Tax Code, as amended, since there is no donative intent on the part of the Association tol donate the said property to said member-beneficiary, considering that :: could not donate property the ownership of which already belongs to the member-beneficiary.

Furthermore, it is noted that under Section 196 of the Tax Code, as amended, the deeds or documents subject to the documentary stamp tax (DST) imposed therein are those where the realty sold shall be granted, assigned, transferred, or otherwise conveyed to a purchaser or purchasers or to any other person or persons designated by such purchaser or purchasers, thereby excluding from its purview the instant case considering that the supposed purchaser is actually the owner thereof. Accordingly, the transfer of title of the subject lot in favor of the above-named beneficiary is not subject to DST under Section 196 of the Tax Code, as amended.

Page 2 of 2 SAMAHANG MARALITA ASSOCIATION, INCISUSANA A. LORIAGA HOMEOWNERS CTE N Date issued mP- 3 8 6 - 2 0 2 2 SEP 0 8 2022

However, the notarial acknowledgment to the Deed of Absolute Sale is subject to the DST of P30.00 pursuant to Section I 88 of the same Tax Code.

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 It is, however, understood that this Certificate of Tax Exemption (CTE) is never

to the Revenue District Office (RDO) concerned in order for the latter to issue the Certificate Authority to Register issued by this Bureau. In this regard, this Certificate shall be presented Authorizing Registration (CAR). The CAR shall only be issued after the submission of the requirements provided under Revenue Memorandum Order (RMO) No. 15-2003.

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

Issued this day of SEP 0 8 2022

Commissioner of Internal Revenue LILIA CATRIS GUILLERMO Uhal LGul 00126g K-1-JAC