BIR Ruling No. 319-2016

REPUBLICOF THE PHILIPPINES

.T BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

0 Quezon City

RA7279:RR 11-97 BIR Ruling No.066-2011 BIR Ruling No.353-2013 319-2016

6-29-2016

Old National HigwayMacabling Sta.Rosa,Laguna ALTISSIMA ENTERPRISES

Attention: Roy M. Gonzales

Proprietor

Gentlemen:

ALTISSIMA ENTERPRISES,tax exemption on the socialized housing project,Villa Santa Rosa located at Brgy.Caingin,Sta.Rosa City.Laguna.pursuant to Republic Act RA No.7279.otherwise known as the Urban Development and Housing Act of 1992" This refers to your letter dated December 1, 2015 requesting. on behalf of

under the Community Initiative Approach Program (CIAP) of the NHA.The subject Authority (NHA,the sole government agency engaged in direct shelter production to provide housing needs of the low and marginalized income families including those living in waterways and danger areas, those affected by calamities, and members of the AFP/PNP,BJMP and BFP,has a parcel of land to be developed into a residential project property is more particularly described as follows Based on the documents submitted, it is shown that the National Housing

Transfer Certificate of Title No

Lot No.:1643-A

Location: Barangay Caingin City of Sta. Rosa, Province of Laguna Plan No.:PSD-04-241750 Arca:Fourteen Thousand One Hundred Forty Five Square Meters

VSRHOAI) whereby ALTISSIMA ENTERPRISES has agreed to sell to VSRHOAI's individual members the developed lots and completed housing units under the ALTISSIMA ENTERPRISES and Villa Santa Rosa Homeowners' Association,Inc On October 25.2013.a Contract Agreement was executed by and betwcen

For the Acquisition of 1.773 Housing UnitsVilla Santa Rosa, Barangay Caingin Sta. Rosa Laguna

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Communitv Initiative Approach Program (CIAP of the NHA for per family. for every developed lot and completed housing unit

peaceful and orderly relocation and resettlement of the families affected by the as the beneficiaries, and the NHA.as the lead agency in the implementation of the calamities and those living in danger areas. executed by and among ALTISSIMA ENTERPRISES.as the developer.VSRHOAI. Resettlement and Relocation Programs of the government and to ensure the timely. Moreover,on November 4,2013,a Memorandum of AgreementMOA) was

financing of the acquisition of completed housing units through the CIAP in the amount with a financial grant for the acquisition of approximately 1.773 developed lots and not to exceed Under the MOA,mcmbers4 of the VSRHOAI shall be provided by the NHA per lot and

Der housing unit.

Deed of Absolute Sale was executed by and between ALTISSIMA ENTERPRISES and land covering an area of Seventy Thousand Nine Hundred Twentv sauare metors NHA,whereby the former agreed to sell to NHA,1.773 developed lots or parcels of 70.920 samfor To give effect to the Contract Agreement and MOA,on February 5,2014,a

No.7279. pertinent portions of which state that In reply,please be informed that pursuant to Section 20 of Republic Act (RA

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

XXX XXX XXX

"d Exemption from the payment of the following.

( Project-related income taxes:

(3) 2 Value-added tax for the project contractor concerned:" Capital Gains Tax on raw lands used for the project

XXX XXX XXX

For Financing the Acquisition and Developed Lots and Financing the Acquisition of pages containing Two Hundred Ninetcen 219 beneficiaries Completed Housing Units for Families Affected by Calamities and those Living in Danger AreasVilla Santa Rosa,BrgyCainginSta. Rosa CityLaguna 4Please see attached Partial Masterlist of Qualified Household Families consisting of seven7 per developed lot and per completed housing unit

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Altissima Enterprises #319-2016 6-29-2016

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Section 3(r of R.A.7279 definessocialized housingas follows

projects covering houses and lots or homelots only "(r)"Socialized housing"refers to housing programs and

undertaken by the Government or the private sector for the underprivileged and homeless citizens which shall include

sites and services development, long-term financing.

benefits in accordance with the provisions of this Act liberalized terms on interest payments, and such other

only, including sites development for socialized housing projects, intended for the Based on the foregoing, housing projects covering houses and lots or homelots

underprivileged and homeless citizens undertaken by the Government or the public sector, are entitled to exemption from income tax on revenues directly derived therefrom.Considering that ALTISSIMA ENTERPRISES is a project contractor whose services have been engaged by NHA to undertake the construction of the 1.773 Housing Units with its necessary construction components in Villa Santa Rosa located at Brgy. Caingin, Sta. Rosa City. Laguna, a housing project under the socialized housing program of the NHA pursuant to R.A.7279 the income directly realized by ALTISSIMA ENTERPRISES from the construction of I,773 Housing Units with its necessary construction components, in Villa Santa Rosa located at Brgy.Caingin, Sta.

063-14 dated February 19,2014) Rosa City,Laguna, shall be exempt from project-related income taxes.(BIR Ruling No.

Moreover.pursuant to Section 20(d3 of R.A.No.7279,the construction of

Rosa located at Brgy. Caingin Sta. Rosa City, Laguna by ALTISSIMA the 1,773 Housing Units with its necessary construction components, in Villa Santa ENTERPRISES.shall be exempt from VAT.However.the purchases of goods/articles

by ALTISSIMA ENTERPRISES 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.

However. if upon investigation, it will be ascertained that the facts are different, then This ruling is being issued on the basis of the foregoing facts as represented.

this ruling shall be considered as null and void.

Very truly yours.

KIM S.JACINTO-HENARES

K-1-VDPM Commissioner bf Internal Revenue 042581 JUN 2 9 2016