RMO No. 12-2017 — Prescribes the guidelines and procedure to streamline the process and issuance of Certificate of Tax Exemption (CTE) and Electronic Certificate Authorizing Registration (eCAR) for transfers of raw lands to community/ homeowners associations for socialized housing projects under RA No. 7279 (Urban Development and Housing Act of 1992)

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE RECORUS MGT. DIVISION MAY`16 2017 TOSS A M.

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Date: May 16, 2017

REVENUE MEMORANDUM ORDER NO. 12-1017

SUBJECT : GUIDELINES AND PROCEDURE TO STREAMLINE THE PROCESS AND ISSUANCE OF CERTIFICATE OF TAX EXEMPTION (CTE) AND ELECTRONIC RAW LANDS TO COMMUNITY/HOMEOWNERS ASSOCIATIONS FOR SOCIALIZED HOUSING PROJECTS UNDER ARTICLE VII SECTION 32, OH REPUBLIC ACT (RA) NO. 7279, OTHERWISE KNOWN AS THE "URBAN DEVELOPMENT AND HOUSING ACT OF 1992" CERTIFICATE AUTHORIZING REGISTRATION (eCAR) FOR TRANSFERS OF

TO : All Internal Revenue Officers and Others Concerned

I. OBJECTIVES:

a To improve the level of taxpayer service especially to the underprivileged and homeless

c. To amplify the applicable laws and complement existing revenue issuances with the end d. To delineate the functions of the offices involved in the processing and issuance of eCAR b sectors of the society; To effectively facilitate and expedite the processing and issuance of Certificate of Tax Exemption (CTE) and electronic Certificate Authorizing Registration (eCAR) for the transfer of raw lands to Community/Homeowners Associations intended for socialized housing projects under the Community Mortgage Program (CMP) of RA No. 7279: regarding the aforesaid transfer of raw lands. view of decongesting voluminous requests for tax exemption on said transfer of raw lands in the Legal and Legislative Division (Law Division); and

II. APPLICABLE LAWS AND ISSUANCES:

1. RA No. 7279; and 2. Revenue Regulations No. 17-2001

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II. COVERAGE:

Community/Homeowners Associations covered under the Community Mortgage Program (CMP) of RA No. 7279 as duly certified by the Social Housing Finance Corporation (SHFC) The transaction covered by this Order shall only apply to the transfer of raw lands to the

IV. PROCEDURE:

A. PROCESSING AND ISSUANCE OF THE CTE:

Commissioner. No application shall be processed unless the following documentary requirements are fully complied with by the requesting party: The application for the issuance :of CTE shall be filed directly with the Office of the

a b Original Certification signed by the President of the SHFC that the subject property Certified true copy of the Deed of Sale executed by the landowner in favor of the qualifies and is actually a CMP Project. Such Certification shall be sufficient guarantee of the validity, authenticity and due diligence in the review of CMP Project loan application of the Homeowners Association;

C Community/Homeowners Association; Certified true copy of the Master List of Beneficiaries; d e. Certified true copy of the Transfer Certificate of Title /Original Certificate of Title and Extrajudicial Settlement of Estate, in case the title of the property is still in the name of a latest Tax Declaration of the property; and deceased landowner, and evidence of payment of appropriate taxes

B. PROCESSING AND ISSUANCE OF eCAR:

be required from the taxpayer/landowner requesting for the eCAR. within five working (5) days from the date of submission of the CTE. The CTE shall be a sufficient basis for the Revenue District Officer concerned to issue the eCAR and no other documents shall The RDO concerned shall undertake to process, approve and issue the necessary eCAR

Same is to be applied or is being applied to socialized housing project pursuant to RA 7279. Community Mortgage Program pursuant to RA No. 7279, with a lien on the title of the land annotated by the Register of Deeds having jurisdiction over the properties, to the effect that the The eCAR that will be issued shall particularly state that the raw land is intended for a

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V. POST-AUDIT MECHANISM:

the raw land is actually covered under the Community Mortgage Program pursuant to RA No. 7279. The BIR may at any time conduct a post-audit evaluation and verification on whether or not

VI. REPEALING CLAUSE:

or revoked accordingly All existing issuances or portions thereof which are inconsistent herewith are hereby repealed

VII. EFFECTIVITY:

to give this Order a wide publicity as possible. This Revenue Memorandum Order shall take effect immediately. All concerned are enjoined

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Commissioner of Internal Revenue CAESAR R. DULAY 006195 BUREAU OF INTERNAL REVENUE K-1 RECORDS MGT. DIVISION ID: Ss A. M.

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