BIR Ruling No. 366-2018

REPUBLICC. : PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

RA7279 BIR Ruling No. 383-13

t: 366-2018 3-8-2018

Samahang Maralita Catmon Homeowners Association, Inc.

Brgy. Catmon, Malabon City Sitio 6, Gov. Pascual Ave.

Attention: Mr. Felizardo Z. Gogolin

President Gentlemen:

This refers to your letter dated November 16, 2017 requesting exemption from the payment of capital gains tax and other taxes, relative to the transfer of title of land from Samahang Maralita Catmon Homeowners Association, Inc. in favor of Ms. Marie M. Cal, Mr. Edito M. Mengullo, Mr. Emmanuel M. Manlapig, and Ms. Editha M. Custodio pursuant to Republic Act 7279 otherwise known as the "Urban Development and Housing Act of 1992".

As represented, Samahang Maratita Catmon Homeowners Association, Inc. (TIN # is the registered owner of the parcel of land covered by Transfer Certificate

Sitio 6. Governor Pascual Ave:; Brgy. Catmon, Malabon City. It is a community of Title (TCT) No. .' issued by the Registry of Deeds for Malabon City, located at

association/cooperative duly registered with the Housing and Land Use Regulatory Board (HLURB) under Registration No. The aforesaid lot was acquired through a loan under the Community Mortgage Program (CMP) of the Social Housing Finance Corporation (SHFC) with Foundation for Aiternatives, Inc. (FDA) as Originator. The said project was taken-out/paid on November 23, 2004 in the amount of PhP The following are the beneficiaries therein:

Edito M. Mengullo Marie M. Cal Emmanuel M. Manlapig Editha M. Custodio Name TIN No. TCT No. (sq.m.) Area Date of Deed of October 24, 2017 October 24, 2017 October 25, 2017 October 25,2017 Sale

The abovementioned beneficiaries are now in the process of transferring their respective properties to their name.

: 366-2018 3-8-2018 Samahang Maralita Catmon HOA, Inc. Page 2 of 2

In reply, please be informed that the transfer of parcels of land to the beneficiaries is

beneficiaries of your Association who actually bought the same from the former owner through your Association. In other words, the association is in fact transferring the ownership of the 2-98. as amended, implementing Section 57 (B) of the same Code, considering that the said transfer is merely a formality to finaily effect the transfer of the said properties to the member- property to its member-beneficiaries who actually own the same. not subject to either the capital gains tax imposed under Section 27 (D) (5) of the Tax Code of 1997, as amended, or the creditable withholding tax imposed under Revenue Regulations No.

99 of the Tax Code of 1997. as amended, since there is no donative intent or intention on the it could not donate property the ownership of which belongs to the donee (member-beneficiary) himself. (BIR Ruling No. 383-13 dated October 22, 2013) part of the Association to donate the said property to said member-beneficiary, considering that Furthermore, the said transfer is not subiect to the donor's tax imposed under Section

documents subject to the documentary stamp tax imposed therein are those where the realty 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 sold shall be granted, assigned, transferred, or otherwise conveyed to a purchaser or purchasers thereof. It is noted that under Section 196 of the Tax Code of 1997, as amended, the deeds or

Emmanuel M. Manlapig. Editha M. Custodio, and Edito M. Mengullo is not subject to the documentary stamp tax of P15.00 pursuant to Section 1 88 of the Tax Code of 1997. (BIR Ruling However, the notarial acknowledgment to said deeds of conveyance is subject to the No. 383-13 dated October 22. 2013) documentary stamp tax imposed under Section 196 of the Tax Code of 1997, as amended. Accordingly, the transfer of title of the above-described properties to Marie M. Cal,

above the maximum amount shall be subject to the corresponding internal revenue taxes. actual selling price per sale transaction of the house and lot packages in this case does not really exceed P450.000.00 and P180,000.00 for lot only. Thus, sale of a house and lot or lot only only be issued after the submission of the requirements provided under Revenue Memorandum Order (RMO) 15-2003 and after it is established upon proper verification by the Revenue District Officer (RDO) concerned that, considering the rules on valuation on real property, the It is, however. understood that the Certificate Authorizing Registration (CAR) shall

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

Very truly yours,

K-1-MCUS Commissioner of Internal Revenuc CAESAR R. DULA 014