BIR Ruling No. 320-2016

BUREAU OF INTERNAL REVENUE REPUBLICOF THE PHILIPPINES DFPARTMENT OF FINANCE

Quezon City

RA7279

BIR Ruling No. 473-2014

#3202016

6-29-2016

J.C.UYECIO CONSTRUCTION AND DEVELOPMENT COMPANY Balagtas.Bulacan Divine Grace

Gentlemen: AttentionJAMES C.UYECIO President

Housing Act of 1992". Resettlement Project located in Brgy. Cacarong Matanda, Pandi, Bulacan pursuant to Republic Act (R.A.) No.7279. otherwise known as the Urban Development and This refers to your undated letter requesting tax exemption of Padre Pio

et al.,(hereinafter referred to as Landowners are the registered owners of parcels of land covered by three 3 Transfer Certificates of Title (TCT located at Brgy. Cacarong Matanda,Pandi,Bulacan, to wit Castro).Spouses Deogracias S.Mendoza and Anacleta N.Ramos and Ines I.Ramirez Documents submitted show that Danilo R. Castro.(married to Carmencita L

Landowners Ines I.Ramirez13/26 share,Nerea l.Ramirez Danilo R.Castro Spouses Deogracias S.Mendoza and Anacleta N. Ramos Paula 1.Ramirez1/26 sharc,ManuelI. 1/26 share.Pedro 1.Ramirez1/26 share Ramirez1/26 share,Ramon I.Ramirez 1/26 shareand Antonio I.Ramirez1/26 share 1/26 share.Marcelina 1.Ramirez1/26 share Ramirez Jr.1/26 share),Priscila I. Ramirez Gloria I.Ramirez1/26 shareFelicisima l. Ramirez1/26 share. Lourdes I.Ramirez1/26 share,Elvira I.Ramirez1/26 share.Leticia I. TCT Area (sq. m.) 114.435 57.543 7,8 2 10,591 4,048

Total Area 264.489

all issued by the Registry of Deeds for Province of Bulacan.

whereby the landowners transferred and conveyed the above mentioned properties, to the J. C. Uyecio Construction and Development Company (TIN W Deed of Absolute of Sale was executed by and between the landowners and

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Landowners Date of Deed of Absolute Sale TCT (PhP) Consideration

Spouses Deogracias S Danilo R.Castro July 22.2015

Mendoza and Anacleta N Ines 1.Ramirez13/26 share Nerea 1.Ramirez 1/26 share Marcelina l.Ramirez1/26 Ramos July 22.2015

share.Paula 1.Ramirez1/26

126 share,Priscila I.Ramirez 126 sharePedro 1.Ramirez share.Manuel I.Ramirez Jr. 1/26 share.Gloria 1.Ramirez July 22,2015

(l26 share), Felicisima l.

1.Ramirez1/26 share.Elvira 1.Ramirez1/26 share,Leticia 1.Ramirez1/26 share.Ramon Ramirez1/26 share).Lourdes

Antonio I. Ramirez (l/26 share) 1.Ramirez1/26 share and

The following taxes were paid, to wit:

Date of Payment Documentary Stamp Tax TCT No. Date of Payment Capital Gains Tax

August 5, 2015 TCT No. August 20.2015

August 5.2015 Date of Payment September1.2015 Documentary Stamp Tax September 1.2015 Date of Payment August 20.2015 Capital Gains Tax

Datc of Payment August 5.2015 TCT Nos. Documentary Stanp Tax August 20.2015 Date of Payment Capital Gains Tax

TCT Nos Manuel I.Ramirez Jr.

Date of Payment Estate Tax :

February 2.2016

Heirs of Manuel I.Ramirez Jr..namely:Sharon B.RamirezNadine B.Ramirez-Dela Rosa,Manuel

Valentine B. Ramirez. Celine B.Ramirez Carlo Gerardo B. Ramirez, Assumpta Carolina-Naa. Michelle Karen B. Ramirez and Candace Pia B.Ramirez-Lingao as evidenced by Extrajudicial

Settlement of Estate of the Late Manuel 1.Ramirez Jr. with Special Power of Attorney dated November 3.2015.identificd as Doc.No.108,Page No.59,Book VII,Series of 2015 2 eCR201300373175 dated September 22,2015

3 id * eCR201500003577 dated October 16, 2015

eCR201500116422eCR201500116423 and eCR201500116424 all dated April 202015 id

I id eCR201500115421,eCR20150015422and eCR201500115423all dated March 18.2016

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J.C Uyecio Construction and Development CompanyPadre Pio Resettlement Project

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On February 6,2015.a Contract Agreement was executed by and between J

C. Uyecio Construction and Development Company (TIN ) and

Padre Pio Homeowners Association Inc.. a homeowner's organization registered with

the Housing and Land Use Regulatory Board (HLURB, whereby former has

offered to sell the developed lots and completed housing units under the Community

Initiative Approach Program (CIAP) of the National Housing Authority (NHA for

for every developed lot and completed housing unit per family.

Moreover.on December 23.2014,February 20,2015 and October 20,2015.a Memoranda of Agreement MOA were executed by and among, J.C.Uyecio

Construction and Development Company. as the landowner/developer/contractor /Padre Pio Homeowners Association Inc.as the beneficiary and the NHA, as the

lead agency in the implementation of the National Resettlement Programs of the

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

Under the MOA.members2 of Padre Pio Homeowners Association Inc.shall be provided by the NHA with a financial grant for the acquisition of Three Thousand

Five Hundred Thirty Three (3.5333/developed lots and financing the acquisition of 3.533 completed housing units in the amount not to exceed

Pesos per completed housing unit. per lot and

On March 24,2015,April 14,2015.August 24.2015 and December 19.2015

of Absolute Sale (DOAS whereby the former,transferred and conveyed 3.53314 developed lots on the One Hundred Forty Four Thousand Six Hundred Seventy Nine square meters (144,679 sq.m.) of the subject properties covered by TCT No. J.C.Uyecio Construction and Development Company and the NHA executed Deeds

and to NHA at an agreed price of

04253

I For financing the acquisition of developed lots and financing the acquisition of completed housing 1 Composed of members/families living in danger areas, those affected by calamities and those 13 700 units under Batch 1-2014,2,000 units under Batch 1-2015 and 833 under Batch 2-2015 units Padre Pio Resettlement Project Brgy.Cacarong Bata,Pandi,Bulacan See Annex list of beneficiaries consisting of seventy one71 pages affected by the clearing of waterways, esteros and infrastructure projects of the government in Metro 14 700 Units under Batch 1-2015.2.000 under Batch 2-2015 and 833 under Batch 4-2015 2015 and August 24,2015 and Manila for developed lot and for DOAS dated March 24, 2015, for DOAS dated December 19,2015 for completed housing units each for DOAS dated April 4

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J.C.Uyecio Construction and Development CompanyPadre Pio Resettlement Project Page 4 of 5

Act (RA)No.7279, pertinent portions of which state that: In reply.please be informed that pursuant to Sections 19 and 20 of Republic

charge of providing housing for the underprivileged and homeless kind. whether local or national, such as income and realty taxes. Al shall he exempted from the payment of all fees and charges of amy National Housing Authority, being the primary government agency in nSec. 19. Incentives for the National Housing Authority.The

documents or contracts executed by and in favor of the National

documentary stamp tax and registration fees,including fees reguired Housing Authority shall also be exempt from the payment of

for the issuance of iransfer certificates of title.

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

XXX XXX XXX

"() Exemption from the payment of the following.

() Project-related income taxes:

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

3) Value-added tax for the project contractor concerned."

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

consequently from withholding tax.(BIR Ruling No.036-2014 dated January 29. Company to NHA is exempt from capital gains tax,project-related income taxes and sg.m.portion of the subject properties by J.C.Uyecio Construction and Development 2014) Such being the case, the sale of 3,533 developed lot packages on the 144,679

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

XXX XXX XXX

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

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

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XXX XXX XXX

The exemption from documentary stamp tax of NHA in connection with any

of its socialized housing project extends to the other party either seller or buyer that

deals or transacts with the NHA.Consequently.since NHA is a party to the sale,no

documentary stamp tax shall be due on such sale, either on NHA or the party with

which NHA is transacting.Accordingly.the transfer of J.C.Uyecio Construction and

Development Company to NHA of 3.533 developed lot packages on the 144.679

sq.m portion of the subject properties are likewise exempt from documentary stamp

tax imposed under Section i96 of the Tax Code of 1997.as amended.BIR Ruling

No. 036-2014 dated January 29. 2014)

Upon application for exemption a lien on the title of the land shall be

annotated by the Register of Deeds having jurisdiction over the property to the effect

that the same is to be applied or is being applied to socialized housing project

pursuant to RA 7279.

Please take note that this ruling is never intended and shall not be construed as

giving authority to the concerned Register of Deeds to effect transfer of the land in the

name of the buyer without the necessary certificate of authority to register 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 Certificate Authorizing

Registration (CAR after the submission of the requirements provided under RMO

15-2003.

Pursuant to Section 20 d3 of RA 7279.the transfer/sale by J.C.Uyecio

Construction and Development Company of 3.533 developed lot packages on the

144.679 sq.m.of the subiect properties in favor of NHA shall be exempt from VAT

However.its purchases of goods/articles shall be subject to VAT,even if the said

purchases are to be used for the socialized housing project, since VAT is an indirect

tax which can be passed on by the seller of the goods/services. Moreover,it shall be

understood that J. C. Uyecio Construction and Development Company must issue non-VAT official receipts on its gross receipts from the said socialized housing

project.

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.

Very truly yours.

KIM S.JACINTO-HENARES Commissioner of Internal Revenue K-1-JRC 042583

JUN 2 9 2016