BIR Ruling No. 322-2016

REPUBIICOFTHE PHILIPPINES

DEPARTMENTOFHNANCE BUREAUOF INTERNAL REVENUF

Quezon City

RA7279

BIR Ruling No.500-2014

#322-2016 6-29-2016

GOLDENVILLE REALTY AND DEVELOPMENT CORPORATION 3368 Harvard Street.Pinagkaisahan Makati City

Gentlemen: Attention : President and General Manager IDA ABENDANO-GUINTU

This refers to your letter dated May 31.2016.requesting for the issuance of

otherwise known as the "Urban Development and Housing Act of 1992 Project in Brgy.Pinugay.Baras,Rizal pursuant to Republic Act R.A.) No.7279 Certificate of Tax Exemption for the Southville 9 Phase 2 Resettlement Housing

Corporation with Tax Identification Number Documents submitted show that the Goldenville Realty and Development is the absolute and registered owner of parcels of land located at Brgy.Pinugay.Baras,Rizal.covered by Transfer Certificates of TitleTCT),to wit

TCT Lot No. Area (sq. m.)

C-6-C-10 C-6-D-14 C-6-C-20 C-6-C-12 C-6-C-13 C-7-A-14 C-6-D-11 Total Area 21.101 82,570 14.756 15.396 6.393 9.981 6.627 8.316

issued by the Registry of Deeds for Rizal,Morong Branch

Goldenville Realty and Development Corporation and Southville 9 Ynares Village Phase 2 Homcowners Association Inc. a homeowners organization registered with the Community Association Initiative Approach Program (CAIAP) of the National Housing Authority (NHA) for every developed lot and completed housing unit per memberramuy the Housing and Land Use Regulatory Board (HLURB) with Registration No. whereby Goldenville Realty and Development Corporation offered its services to the families who arc members of Southville 9(Ynares Village Phase 2 Homeowners Association Inc.by delivering developed homelots and completed housing units under On March 20,2014.a Contract Agreement' was executed by and between for

Financing the Acquisition of Developed Lots and Completed Housing Units

GRDSouhvike Ynares VilagePhase 2 Homeowners Association Inc 322-2016 629-2016

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the implementation of National Resertlement and Relocation Programs of the xecuted by and among Goldenville Realty and Development Corporation as the Association Inc.as the beneficiaryand the NHAas the lead government agency in landowner developer/constructor.Southville 9(Ynares Village)Phase 2 Homeowners Moreover,on March 28.2014,a Memorandum of AgreementMOAwas

resettlement of the families affected by calamities and those living in danger areas from Metro Manila. government and to ensure the timely. peaceful and orderly relocation and

Homeowners Association Ine.shall be provided by the NHA with a financial grant for the acauisition of One Thousand (1.000 developed lots and financing of the Under the MOA,membersof Southville 9Ynares Village Phase 2

acquisition of completed housing units through the CAIAP under the National Resettlement Program of the government in the amount not to exceed per lot and One Hundred Iwenty Five

per nousing unit.

One Thousand 1,000 developed lots or parcels of land with an aggregate area of of the suhieet properties covered by TCT Nos. NHA executed a Deed of Absolute Sale whereby the former transferred and conveyed Forty Thousand One Three Hundred Forty One square meters (41.341 sa.m. portion On April 13.2015.Goldenville Realty and Development Corporation and the to the latter at an agreed price of One Hundred Fifteen Million Pesos and

Act(RANo.7279.pertinent portions of which state that In reply.please be informed that pursuant to Sections 19 and 20 of Republic

for the issuance of transfer certificates of title. documentary stamp tax and registration fees,including fees required Housing Authority shall also be exempt from the payment of charge of providing housing for the underprivileged and homeless, kind, whether local or national, such as income and realtv uaxes All documents or contracts executed by and in favor of the National National Housing Authoritv, being the primary government agency in shall be exempted from the pavment of all fees and charges of am "Sec.19.Incentives for the National Housing Authority--The

socialized housing and further reduce the cost of housing units for the shall be extended to the private sector: benefit of the underprivileged and homeless,the following incentives Housing. "Sec. 20. To encourage greater private sector participation in Incentives for Private Sector Participating in Socialized

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d)Exemption from the payment of the following

Composed of members/famihes affected by the calamities and those living in danger area from For Financing the Acquisition of Developed Lots and Financing the Acquisition of Completed Housing Units Southville 9 [Ynares Viltage] Phase 2 Resettlement Housing Project Brgy.Pmugay Sce Annex tist of beneficiaries consisting of twenty seven (27pages Metro Manita and Province of Rizal Baras)

Aaatan

GRDCSouthville 9Ynares Village Phase Homeowners Association Inc. Page 3 of 4 62920 16 #322-2016

Project-related income taxes:

(2 Capital Gains Tax on raw lands used for the project

3Value-added tax for the project contractor concerned:

housing project is exempt from the payment of the capital gains tax and project- the landowner/developer of properties who sells its properties for use in a socialized related income taxes.

portion of thesubiect properties covered by TCT Nos Such being the case, the sale of 1,000 developed lots on the 41.341 sa.m.

and by Goldenville Realty and Development Corporation to NHA is exempt from capital gains tax. project-related income taxes and consequently from withholding tax.(BIR Ruling No.500-2014 dated December 29,2014)

provide, viz.: Moreover. pertinent portions of RMC No.42-01 dated October 5.2001.

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the primary government agency in charge of providing housing for the payment of the following national internal revemue taxes: underprivileged and homeless citizens shall be exempted from the A National Housing Authority (NHA)-The NHA.being

executed hy and in favor of the NHA." the exemption from in favor of the NHA in connection with socialized housing projects. Since Section 19 of R.A.7279 exempts "all documents or contracts documentary stamp tax extends to the other party (either seller or huver) that is dealing or transacting with the NHA. 2) Documentary stamp tax on sales transactions executed by and

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documentary stamp tax shall be due on such sale, either on NHA or the party with portion of the subiect pronerties covered hv TCT Nos. deals or transacts with the NHA. Consequcntly.since NHA is a party to the sale.no which NHA is transacting. Accordingly, the transfer Goldenville Realty and Development Corporation to NHA of the 1,000 developed lots on the 41,341 sq.m. of its socialized housing project extends to the other party (either seller or buver) that The exemption from documentary stamp tax of NHA in connection with any

imposed under Section 196 of the Tax Code of 1997.as amended.(BIR Ruling No. and 500-2014 dated December 29.2014) s concerned.are likewise exempt from documentary stamp tax

that the same is to be applied or is being applied to socialized housing project annotated by the Register of Deeds having jurisdiction over the property.to the effect pursuant to RA 7279. Upon application for exemption. a lien on the title of the land shall be

giving authority to the concerned Register of Deeds to effect transfer of the land in the Please take note that this ruling is never intended and shall not be construed as

GRDC Southville 9(Ynares VillagePhae 2 fmeowners Asocintion Ine 32 3

Page 4 ot 4

Registration (CAR after the submission of the requirements provided under RMO name of the buyer without the necessary certificate of authority to register issued hy Office (RDO concerned in order for the latter to issue the Certificate Anthorizing this Bureau.In this regard, this ruling shall be presented to the Revenue Distric

15-2003.

Reatty and Development Corporation of L000 developed tots on the 41.341sg.m portion of the subiect pronerties covered by TCT Nos. Pursuant to Section 20(d3) of RA 7279.the transfer/sale by Goldenvile

passed on by the seller of the goods/services. Moreover,it shall be understood that receipts on its gross receipts from the said socialized housing project. be used for the socialized housing project. since VAT is an indirect tax which can be Goldenville Realty and Development Corporation must issue non-VAT official and purchases of goods/articles shall be subicct to VAT.even if the said purchases are to in favor or NHA shall be exempt trom VAT.However. its

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

Very truly yours.

K-1-JRC Commissioner of internal Revenue KIM S.JACINTO-HENARES Voy 042580 JUN 2 3 2016