BIR Ruling on Donor's Tax Exemption for Religious Organization

12-18-2013 BIR Ruling No.
472-13
December 18, 2013
BIR RULING NO. 472-13
E.O. 226; RR 16-2011;
Secs. 57 (B); 106 (A) (1) (a); 196 NIRC;
BIR Ruling No. 334-11
Communities Batangas, Inc.
Mezzanine Floor, Starmall Complex
EDSA cor. Shaw Blvd.
Mandaluyong City
Attention: Ms. Leamor S. Harlea
Chief Accountant
Gentlemen :
This refers to your letter dated December 06, 2010 stating that Communities
Batangas, Inc. (Communities Batangas for brevity) with Tax Identification No. 004525-999 is a domestic corporation duly registered with the Securities and Exchange
Commission (SEC) under Company Reg. No. A1996-01106. It is registered with the
Board of Investments (BOI) as an Expanding Developer of a Low-Cost Mass Housing
Project (Citrus Grove Expansion, Barangay Cumba, Lipa City, Batangas) on a NonPioneer status under the Omnibus Investments Code of 1987 or Executive Order
(EO) No. 226. Communities Batangas, Inc. has been granted Income Tax Holiday
(ITH) by the BOI under Certificate of Registration No. 2010-105 dated May 25, 2010
for a period of three (3) years from May 2010 or actual start of commercial
operations/selling pursuant to EO 226. Communities Batangas' Citrus Grove
Expansion, Barangay Cumba, Lipa City, Batangas Project is registered with Housing
and Land Use Regulatory Board (HLURB) under Certificate of Registration No. 21710
and holds HLURB License to Sell No. 22946; and under the Specific Terms and
Conditions of its BOI Registration, Communities Batangas shall construct and sell
thirty six (36) units of low-cost mass housing for Citrus Grove Expansion, Barangay
Cumba, Lipa City, Batangas Project based on the following schedule: HESAIT
Year
Volume (No. of Units)
10
14
12
Total 36
=====
On the basis of the foregoing, you now request for an opinion on the tax
consequences of the said ITH granted by BOI. Specifically, if Communities Batangas,
being a BOI-registered enterprise is exempt from the payment of the creditable
withholding tax (CWT) imposed under Revenue Regulations No. 2-98 on income
payments received during the aforementioned period with respect to its registered
activity.
In reply, please be informed that under Section 2.57.5 (B) (2) of Revenue
Regulations (RR) No. 2-98, as amended by RR No. 6-2001 implementing Section 57
(B) of the Tax Code of 1997, as amended, the withholding tax prescribed in the said
Regulations shall not apply to income payments to persons enjoying exemption
from the income tax provided by Republic Act No. 7916 and the Omnibus
Investments Code of 1987. aCcHEI
Accordingly, since Communities Batangas' Citrus Grove Expansion, Barangay
Cumba, Lipa City, Batangas Project is a BOI registered project, this Office is of the
opinion as it hereby holds, that income payments received by Communities
Batangas in connection with its housing projects: Communities Batangas' Citrus
Grove Expansion, Barangay Cumba, Lipa City, Batangas Project (on the 36 low-cost
mass housing units as mentioned in the Specific Terms and Conditions of its BOI
Registration) is exempt from CWT under RR No. 2-98, as amended by RR No. 62001, for a period of 3 years from May 2010 or actual start of commercial
operations/selling, whichever is earlier but in no case earlier than the date of
registration. It must be emphasized, however, that the above exemption from CWT
covers only revenues generated from the registered activities, Communities
Batangas' Citrus Grove Expansion, Barangay Cumba, Lipa City, Batangas Project
involving 36 low-cost mass housing units. Furthermore, such exemption shall not
cover revenues from units with selling price exceeding Three Million Pesos
(P3,000,000.00). (BIR Ruling No. 334-11 dated September 7, 2011). In the
computation of ITH, interest income from in-house financing shall not be considered
as revenues generated from the registered activity.
Moreover, the entitlement to ITH of Communities Batangas' Citrus Grove Expansion,
Barangay Cumba, Lipa City, Batangas Project is not automatic as they still have to
comply with the provisions of Sections 10 (a) of the Specific Terms and Conditions of
their BOI Registrations, viz.: HDacIT
1.
The enterprise shall submit a list of common cost items and cost allocation
methodology for its other projects/activities (whether BOI-registered or nonregistered).
2.
Secure from the HLURB an endorsement that it has faithfully complied with
the approved development plan and a "Certificate of Good Housekeeping".
3.
File an application with the BOI Incentives Department within one (1) month
from filing of the final Income Tax Return (ITR) with the Bureau of Internal Revenue
(BIR) in order to validate the claim for income tax exemption. The application shall
be accompanied by a certification from the Social Security System (SSS) that the
enterprise is in good standing in the remittance of SSS contributions of its
employees; and
4.
Secure a Certificate of ITH Entitlement (CoE) from the BOI Supervision and
Monitoring Department prior to filing of ITR with the BIR; otherwise, ITH for that
particular year without CoE shall be forfeited. aTcESI
Furthermore, BOI-registered enterprises enjoy no tax exemption/privileges other
than those granted under E.O. 226. In this regard, under the terms and conditions of
its BOI registration, Communities Batangas' Citrus Grove Expansion, Barangay
Cumba, Lipa City, Batangas Project were clearly granted a 3-year ITH but such
terms and conditions do not provide for any exemption from other taxes that
Communities Batangas may be subject to on its business transactions. Thus,
Communities Batangas' Citrus Grove Expansion, Barangay Cumba, Lipa City,
Batangas Project will remain subject to Value-Added Tax (VAT) and Documentary
Stamp Tax (DST) on its sales of house and lot units pursuant to Sections 106 (A) (1)
(a) and 196 of the Tax Code of 1997, as amended. (BIR Ruling No. 334-11 dated
September 7, 2011)
In relation thereto, Section 109 (1) (P) of the Tax Code of 1997 provides, that the
sale of residential lot valued at One Million Nine Hundred Nineteen Thousand Five
Hundred Pesos (P1,919,500.00) and below, or house and lot and other residential
dwellings valued at Three Million One Hundred Ninety Nine Thousand Two Hundred
Pesos (P3,199,200.00) and below is VAT-exempt. 1 Thus, only the sales by
Communities Batangas' Citrus Grove Expansion, Barangay Cumba, Lipa City,
Batangas Project of housing units with selling price of not more than the
aforementioned price ceiling shall be exempt from VAT. aADSIc
It should be understood that Communities Batangas' Citrus Grove Expansion,
Barangay Cumba, Lipa City, Batangas Project shall be constituted as a withholding
agent for the government if it acts as employer and any of its employees received
compensation income subject to compensation withholding tax, or if it makes
payments to individuals or corporations subject to the withholding taxes as source
as required under Chapter XIII and Section 57 of the Tax Code of 1997, as amended
and implemented by Revenue Regulations No. 2-98, as amended.
Likewise, Communities Batangas' Citrus Grove Expansion, Barangay Cumba, Lipa

City, Batangas Project is required to file on or before the 15th day of the fourth
month following the close of your accounting period of a Profit and Loss Statement
and Balance Sheet with the Annual information Return under oath, stating your
gross income and expenses incurred during the taxable year.
Finally, Communities Batangas' Citrus Grove Expansion, Barangay Cumba, Lipa City,
Batangas Project's books of accounts and other pertinent records shall be subject to
periodic examination by revenue enforcement officers of this Bureau for the
purpose of ascertaining whether you have been complying with the conditions
under which you have been granted tax exemption or tax incentives and your tax
liability, if any, pursuant to Section 235 of the Tax Code of 1997, as amended.
CaSAcH
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,
(SGD.) KIM S. JACINTO-HENARES
Commissioner of Internal Revenue
Footnotes
1.
The increase in the threshold amount for the sale or lease of goods or
properties or the performance of services covered by Section 109 (P), (Q) and (V) of
the 1997 Tax Code took effect on January 1, 2012, pursuant to Revenue Regulations
No. 16-2011 dated October 27, 2011.
Copyright 2013 CD Technologies Asia
12-16-2013 BIR Ruling No. 470-13

December 16, 2013
Section 101 (A) (3), NIRC of 1997;
BIR Ruling No. 429-11;

Next Generation Builder Realty Corporation
No. 5 Bell St., Filinvest East Homes, Brgy. Mayamot,
Antipolo City
Attention: Rowena A. Bais
Corporate Secretary
Gentlemen :
This refers to your letter dated January 9, 2012 requesting exemption from donor's
tax on the donation of real property by NEXT GENERATION BUILDER REALTY
CORPORATION in favor of the DAE SHIN PRESBYTERIAN CHURCHES IN THE
PHILIPPINES. DCScaT
Documents submitted disclosed that NEXT GENERATION BUILDER REALTY
CORPORATION ("Next Generation"), with TIN 007-421-950-000, is a domestic
corporation duly registered with the Securities and Exchange Commission (SEC)
under Company Registration No. CS200915989 and is engaged in real estate
business; that the DAE SHIN PRESBYTERIAN CHURCHES IN THE PHILIPPINES ("Dae
Shin"), with TIN 004-514-979-000, is a religious corporation duly registered with the
SEC under Company Registration No. ANO95-035-66; that Next Generation is the
registered owner of a Five Hundred Ten square meter (510 sq.m.) parcel of land (Lot
3, Blk. 3 of the cons-subd. plan, Pcs-00-009393) located in Centro de Buenviaje, Sto.
Nio, Marikina City and covered by Transfer Certificate of Title (TCT) No. 508905 of
the Registry of Deeds for Marikina City; and that on January 3, 2012, a Deed of
Donation covering the subject property was executed by Next Generation
(represented by Rowena A. Bais) in favor of the Dae Shin (represented by Rev. Kim
Yong Hoon) who accepted the said donation.
In support of the request, the following documents are submitted:
l.
Certified true copies of the SEC Articles of Incorporation and By-Laws of Next
Generation;
2.
Certified true copies of the SEC Amended Articles of Incorporation and ByLaws of Dae Shin; IEHSDA
3.
SPA of Corporate Secretary;
4.
Next Generation Minutes/Board Resolution on the donation;
5.
Original Deed of Donation;
6.
Certified true copy (CCV) of TCT No. 508905;
7.
Verification and Certification against Forum Shopping;
8.
and
Certified true copy of the previous tax declaration of the subject property;
9.
Copies of the BIR Certificate of Registration of the parties.
In reply, please be informed that gifts in favor of educational and/or charitable,

religious, cultural or social welfare corporation, institution, accredited
nongovernment organization, trust or philanthropic organization or research
institution or organization is exempt from the payment of the donor's tax pursuant
to Section 101 (A) (3) of the Tax Code of 1997, as amended, subject to the condition
that not more than thirty percent (30%) of said gift shall be used by the donee for
administration purposes. (BIR Ruling No. 429-11 dated November 4, 2011)
DCASEc
Inasmuch as the Dae Shin is a duly registered religious corporation, any donation to
it is exempt from the payment of donor's tax pursuant to the above provisions of
the Tax Code subject to the condition that not more than 30% of said gift shall be
used by the donee for administration purposes. Since this is a donation of real
property (real property covered by TCT No. 508905), the Register of Deeds shall
annotate this condition at the back of the title because failure to comply with the
said condition shall be a ground for the revocation of the donation pursuant to
Article 764 of the New Civil Code. (BIR Ruling No. 429-11 dated November 4, 2011)
If the donor is a value-added tax (VAT) registered person and the donation is an
ordinary asset, the donation is subject to VAT pursuant to Section 4.106-7 of
Revenue Regulations No. 16-2005 the same being considered a transaction deemed
sale. If the donor is not a VAT registered person, the donation is exempt from VAT.
(BIR Ruling No. 298-12 dated May 3, 2012)
Moreover, Section 185 of Regulations No. 26, otherwise known as the Revised
Documentary Stamp Tax Regulations, implementing Title VII of the Tax Code,
provides that conveyances of realties not in connection with a sale, to trustees or
other persons without consideration are not taxable. Accordingly, the deed of
donation is likewise not subject to the documentary stamp tax prescribed under
Section 196 of the Tax Code, as amended, but only to the documentary stamp tax of
P15.00 imposed under Section 188 of the same Code. (BIR Ruling No. 429-11 dated
November 4, 2011) cDaEAS
It is to be noted that if the same property acquired by donation (TCT No. 508905) is
subsequently conveyed by way of sale or exchange, the sale will be subject to
corporate income tax on the gain realized which is determined by deducting from
the gross selling price the historical cost or the adjusted basis thereof, as it would
be in the hands of the donor, pursuant to Section 27 in relation to Section 101, both
of the Tax Code of 1997, as amended, and consequently to the creditable expanded
withholding tax under Section 2.57.2 of Revenue Regulations No. 2-98, as amended.
Also, if Dae Shin donates the same property donated to it to a non-exempt donee,
then it shall be liable for donor's tax pursuant to Section 98 of the Tax Code of 1997,
as amended. (BIR Ruling No. 118-12 dated February 22, 2012)
However, if upon investigation, it will be ascertained that the facts are different,
then this ruling shall be considered null and void.
Very truly yours,
12-12-2013 BIR Ruling No. 468-13

December 12, 2013
Section 4 (3), Article XIV, 1987 Constitution;
Sections 27 (D) (1), 30 (H); 57; 101 (A) (3); 105; 109 (H); 235; 236 (B); 237 of the
1997 Tax Code, as amended;
Department Order No. 137-87 as amended by Department Order No. 92-88;
Department Order No. 149-95;
RMC No. 76-2003; BIR Ruling No. 059-13;
BIR Ruling No. 548-12; BIR Ruling No. 170-11;
BIR Ruling No. 169-11; BIR Ruling No. 159-11
St. Therese School of Tagbilaran, Inc.
VP Inting Avenue, Mansasa District,
Tagbilaran City, Bohol 6300
Attention: Sr. Lucia D. Mendez, MIST
School Directress
Gentlemen :
This refers to your letter dated June 16, 2011, requesting for a certificate of tax
exemption enjoyed by non-stock, non-profit educational institutions pursuant to
Section 30 (H) of the Tax Code of 1997, as amended. SIcEHC
It is represented that ST. THERESE SCHOOL OF TAGBILARAN, INC., with Taxpayer's
Identification No. 000-961-031-000, is a non-stock, non-profit educational institution
duly organized under the laws of the Philippines; that it is registered with the
Securities and Exchange Commission (SEC) under SEC Registration No. CN094000364 dated October 4, 1994; that it is recognized by the government and
permitted by the Department of Education (DepEd) in accordance with Government
Recognition Nos. 1, s. 1991 and 04R, s. 2006, to operate Pre-School and Elementary
courses, respectively; and that among the purposes for which it was incorporated
are the following:
1.
To establish a school for the instruction and education for children of preschool age and elementary school age;
2.
To promote the principle of true education to establish and maintain a
catholic institution of learning where thorough and systematic instruction shall be
given in the arts, sciences, Christian values and letters for which the usual
certificates shall be awarded;
3.
To educate and develop the total personality of the child/pupil, his physical,
moral, emotional, mental, social and spiritual aspects thus preparing him for high
school and the demands of formal schooling, furthermore, enable him to make
decisions which will prepare him for a more complex demands of future life.
AHcaDC
In support of its request, ST. THERESE SCHOOL OF TAGBILARAN, INC. has submitted
the following required documents:
1.
Letter application for tax exemption;
2.
Certified true copy of the Certificate of Registration with the SEC;
3.
Certified true copy of the Amended Articles of Incorporation which includes
the following provisions:
a.
That the corporation is non-stock, non-profit;
b.
That the primary purpose for which it was created is one of those enumerated
under Sec. 30 of the Tax Code of 1997, as amended;
c.
That no part of the net income of the association shall inure to the benefit of
any of its members;
d.
That the trustees of the association do not receive any compensation; and
e.
In case of dissolution, assets of the association shall be transferred to the
Diocese of Tagbilaran, particularly the Immaculate Heart of Mary Seminary, Taloto
District, Tagbilaran City; CSDTac
4.
Certified true copy of the By-Laws;
5.
Certified true copies of the Annual Income Tax Returns and Financial
Statements for the last three (3) years of operation;
6.
Government (DepEd) Recognitions Certificates;
7.
Certification of Non-Forum Shopping;
8.
BIR Certificate of Registration; and
9.
Other pertinent documents.
In reply, please be informed that paragraph 3, Section 4, Article XIV of the 1987
Constitution provides, viz.:
"All revenues and assets of non-stock, non-profit educational institutions used
actually, directly and exclusively for educational purposes shall be exempt from
taxes and duties."
Likewise, Section 30 (H) of the 1997 Tax Code, as amended, provides, viz.:
"Sec. 30.
Exempt from Tax on Corporations. The following organizations shall
not be taxed under this Title in respect to income received by them as such:
aEHIDT
xxx
(H)
xxx
xxx
A non-stock and non-profit educational institution; . . . ."
A non-stock, non-profit educational institution is exempt from tax on all revenues

derived in pursuance of its purpose as an educational institution and used actually,
directly and exclusively for educational purposes. The exemption contemplated
herein refers to internal revenue taxes imposed by the National Government on all
revenues and assets of non-stock, non-profit educational institutions used actually,
directly and exclusively for educational purposes. (BIR Ruling No. 548-12 dated
August 31, 2012)
Private non-profit educational institutions whose gross income from unrelated trade,
business or other activity does not exceed fifty percent (50%) of their total gross
income derived from all sources, shall pay a tax of ten percent (10%) on their
taxable income, except those covered by Section 27 (D) of the Tax Code. However,
if their gross income from unrelated trade, business or other activity exceeds fifty
percent (50%) of the total gross income derived from all sources then the entire
taxable income shall be subject to the regular corporate income tax rate prescribed
under Section 27 (A) of the Tax Code." (Section 27 [B] of the Tax Code of 1997, as
amended; Commissioner of Internal Revenue vs. St. Luke's Medical Center, Inc., G.R.
Nos. 195909 and 195960 dated 26 September 2012) HAEDCT
Unrelated trade, business or other activity means any trade, business or activity,
the conduct of which is not substantially related to the exercise or performance by
such educational institution of its primary purpose or function. (Section 27 [B], Tax
Code of 1997)
From the foregoing, and since ST. THERESE SCHOOL OF TAGBILARAN, INC. is a nonstock and non-profit educational institution as contemplated under the said
provisions, it is exempt from the payment of taxes and duties on all its revenues
and assets used actually, directly and exclusively for educational purposes. (BIR
Ruling No. 170-11 dated May 25, 2011)
However, ST. THERESE SCHOOL OF TAGBILARAN, INC. shall be subject to internal
revenue taxes on income from trade, business or other activity, the conduct of
which is not related to the exercise or performance by such educational institutions
of their educational purposes or functions. (Sec. 2, Finance Department Order No.
137-87, as amended by Finance Department Order No. 92-88)
Likewise, ST. THERESE SCHOOL OF TAGBILARAN, INC.'s gross receipts from
operations as a non-stock, non-profit educational institution are exempt from valueadded tax (VAT) pursuant to Section 109 (1) (H) of the 1997 Tax Code, as amended.
However, other activities involving sale of goods and services not in connection with
its primary purposes are subject to the 12% VAT imposed under Sections 106 and
108 of the Tax Code of 1997, as amended, or 3% percentage tax imposed under
Section 116 in relation to Section 109 (1) (V) of the same Code if the gross sales or
receipts from such sale of goods and services do not exceed One Million Nine
Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00) which tax
payment may legitimately be passed on to buyers of such goods and services. (BIR
Ruling No. 059-13 dated February 11, 2013) HEDSCc
Hence, as long as ST. THERESE SCHOOL OF TAGBILARAN, INC. will not engage in the
regular conduct or pursuit of a commercial or economic activity including
transactions incidental thereto, it will remain exempt from VAT. (BIR Ruling No. 54812 dated August 31, 2012)
Moreover, the tax exemption granted to it as a non-stock, non-profit corporation
under Section 30 of the Tax Code of 1997 covers only income taxes for which it is
directly liable. It should be noted that VAT is an indirect tax payable by the seller
and not by the purchaser of goods. However, being an indirect tax, it can be shifted
or passed on to the buyer/purchaser, transferee or lessee of the goods, properties
or services. Once shifted to the buyer/customer as an addition to the cost of goods

or services sold, it is no longer a tax but an additional cost which the
buyer/customer has to pay in order to obtain the goods or services.
Thus, the shifting of the VAT to it does not make it the person directly liable and
therefore, it cannot invoke its tax exemption privilege under Section 30 of the Tax
Code of 1997 to avoid the passing on or shifting of the VAT. (BIR Ruling No. 169-11
dated May 25, 2011)
Under Department Order No. 149-95 dated November 24, 1995 amending
Department Order No. 137-87, interest income from currency bank deposits and
yield from deposit substitute instruments used actually, directly and exclusively in
pursuance of its purpose as an educational institution, are exempt from the 20%
final tax and 7 1/2% tax on interest income under the expanded foreign currency
deposit system imposed under Section 27 (D) (1) of the Tax Code of 1997, subject to
compliance with the conditions that as a tax-exempt educational institution it shall
on an annual basis submit to the Revenue District Office concerned an annual
information return and duly audited financial statement together with the following:
cDACST
(a)
Certification from their depository banks as to the amount of interest income
earned from passive investment not subject to the 20% final withholding tax and 7
1/2% tax on interest income under the expanded foreign currency deposit system
imposed by Section 27 (D) (1) of the Tax Code of 1997;
(b)
Certification of actual utilization of the said income; and
(c)
Board Resolution by the school administration on proposed projects (i.e.,
construction and/or improvement of school buildings and facilities, acquisition of
equipment, books and the like) to be funded out of the money deposited in banks or
placed in money markets, on or before the 15th day of the fourth month following
the end of its taxable year (Sec. 4, Finance Department Order No. 137-87).
Moreover, revenues derived from assets used in the operation of
cafeterias/canteens and bookstores are exempt from taxation provided they are
owned and operated by ST. THERESE SCHOOL OF TAGBILARAN, INC. as ancillary
activities and the same are located within its premises.
In addition, gifts, donations, and other contributions received by ST. THERESE
SCHOOL OF TAGBILARAN, INC. as an educational institution, are exempt from the
payment of donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, as
amended, subject to the condition that not more than 30% of said gift shall be used
for administration purposes. CADHcI
Donors cannot avail of full deductibility for purposes of computing taxable income
under Revenue Regulations No. 13-98 without the accreditation of ST. THERESE
SCHOOL OF TAGBILARAN, INC. as a donee institution with the Philippine Council for
NGO Certification (PCNC). Organizations seeking certification shall file with the
PCNC Secretariat a letter of intent to apply for certification and submit the
necessary documents. If the applicant NGO has met the minimum criteria for
certification, the Board gives a 3-year or 5-year certification to the organization and
informs this Office which then issues to said organization a certification of Donee
Institution Status.
ST. THERESE SCHOOL OF TAGBILARAN, INC. is advised to contact The Secretariat,
Philippine Council for NGO Certification (PCNC), tel. nos. 782-1568, 715-9594, 7152756 or telefax 715-2783.
It must be emphasized that its tax exemption does not cover withholding taxes. As
an educational institution, ST. THERESE SCHOOL OF TAGBILARAN, INC. is constituted
as withholding agent for the government required to withhold the tax on
compensation income of its employees, or the withholding tax on income payments
to persons subject to tax pursuant to Section 57 of the Tax Code of 1997, as
amended.
Moreover, ST. THERESE SCHOOL OF TAGBILARAN, INC. is also subject to the
payment of the annual registration fee of Php500.00 as prescribed in Section 236
(B) of the Tax Code of 1997, as amended. It is also required under Section 6 (C) in
relation to Section 237 of the same Code to issue duly registered receipts or sales or
commercial invoices for each sale or transfer of merchandise or for services
rendered which are not directly related to the activities for which they are
registered. (RMC No. 76-2003) aTSEcA
Under Section 235 of the Tax Code of 1997, as amended, any provision of existing
general or special law to the contrary notwithstanding, the Revenue District Officer
shall conduct an audit of annual information return filed, the books of accounts and
other pertinent records of ST. THERESE SCHOOL OF TAGBILARAN, INC. to determine
compliance with the conditions set forth in the certificate of tax exemption and tax
liabilities, if any. (BIR Ruling No. 159-11 dated May 19, 2011)
Please note that this tax exemption ruling shall be valid for a period of three (3)
years from the date of issue, unless sooner revoked or cancelled.
The tax exemption ruling may be renewed upon filing of a subsequent application
for Tax Exemption/Revalidation provided under Revenue Memorandum Order (RMO)
No. 20-2013, otherwise, the exemption shall be deemed revoked upon the
expiration of its validity period.
Very truly yours,

12-12-2013 BIR Ruling No. 467-13

December 12, 2013
Section 4 (3), Article XIV, 1987 Constitution;
Tax Code, Sections 27 (D) (1), 30 (H); 101 (A) (3); 105; 109 (H);
BIR Ruling No. 155-11; BIR Ruling No. 004-12
Santiago & Santiago
Ground Floor, Ortigas Building,
Ortigas Avenue cor. MERALCO Avenue,
1605 Pasig City, Philippines
Attention: Atty. Darren L. Salipsip
Counsel
Gentlemen :
This refers to your letter dated April 16, 2013 requesting for tax exemption
privileges enjoyed by non-stock, non-profit educational institutions pursuant to
Section 30 (H) of the Tax Code of 1997, as amended, on behalf of your client THE
BEACON ACADEMY, INC. cEAaIS
Documents submitted disclose that THE BEACON ACADEMY, INC. with Taxpayer's
Identification No. 007-215-531-000 is a non-stock, non-profit corporation duly
organized under the laws of the Philippines; that it is registered with the Securities
and Exchange Commission (SEC) under Registration No. CN200901136; that it is
recognized by the government and permitted by the Department of Education to

operate and offer the following courses:
a.
Complete Secondary Course (BEC)
In support of its request, THE BEACON ACADEMY, INC. has completely submitted the
following documents, to wit:
l.
2.
Certified True copy of the Certificate of Registration with the SEC;
3.
Certified true copy of the Amended Articles of Incorporation;
4.
Certified true copy of the By-laws;
5.
Copy of the Annual Information Return and Financial Statements for the last
three (3) years of operation; IATSHE
6.
Copy of DEPED Recognition;
7.
BIR Certificate of Registration.
taxes and duties."
"Sec. 30.
xxx
(H)
xxx
xxx

directly and exclusively for educational purposes. CcTIAH
taxable income from unrelated trade, business or other activity, except those
covered by Section 27 (D) of the Tax Code. However, if their gross income from
unrelated trade, business or other activity exceeds fifty (50%) of the total gross
income derived from all sources then the entire taxable income shall be subject to
the regular corporate income tax rate prescribed under Section 27 (A) of the Tax
Code. (Section 27 [B] of the Tax Code of 1997, as amended; Commissioner of
Internal Revenue vs. St. Luke's Medical Center, Inc., G.R. Nos. 195909 and 195960
dated 26 September 2012).
Code of 1997)
From the foregoing, and since THE BEACON ACADEMY, INC. is a non-stock and nonprofit educational institution as contemplated under the said provisions, it is exempt
from the payment of taxes and duties on all its revenues and assets used actually,
directly and exclusively for educational purposes.
However, THE BEACON ACADEMY, INC. shall be subject to internal revenue taxes on
income from trade, business or other activity, the conduct of which is not related to
the exercise or performance by such educational institutions of their educational
purposes or functions (Sec. 2, Finance Department Order No. 137-87, as amended
by Finance Department Order No. 92-88). ACcTDS
Likewise, THE BEACON ACADEMY, INC.'s gross receipts from operations as a nonstock, non-profit educational institution are exempt from value-added tax (VAT)
pursuant to Section 109 (1) (H) of the 1997 Tax Code, as amended.
receipts from such sale of goods and services do not exceed One Million Five
Hundred Thousand Pesos (P1,500,000.00) 1 which tax payment may legitimately be
passed on to buyers of such goods and services.
Hence, as long as THE BEACON ACADEMY, INC. will not engage in the regular
conduct or pursuit of a commercial or economic activity, including transactions
incidental thereto, it will remain exempt from VAT.

buyer/customer has to pay in order to obtain the goods or services. AaITCH
Code of 1997 to avoid the passing on or shifting of the VAT.
(a)
(b)
AEIcTD
(c)
owned and operated by THE BEACON ACADEMY, INC. as ancillary activities and the
same are located within its premises.
In addition, gifts, donations, and other contributions received by THE BEACON
ACADEMY, INC. as an educational institution, are exempt from the payment of
donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, as amended,
subject to the condition that not more than 30% of said gift shall be used for
administration purposes.
under Revenue Regulations No. 13-98 without the accreditation of THE BEACON
ACADEMY, INC. as a donee institution with the Philippine Council for NGO
Certification (PCNC). Organizations seeking certification shall file with the PCNC
Secretariat a letter of intent to apply for certification and submit the necessary
documents. If the applicant NGO has met the minimum criteria for certification, the
Board gives a 3-year or 5-year certification to the organization and informs this
Office which then issues to said organization a certification of Donee Institution
Status. DHSEcI
THE BEACON ACADEMY, INC. is advised to contact The Secretariat, Philippine
Council for NGO Certification (PCNC), tel. nos. 7821-568; 7159-594; 7152-756 or
telefax 7152-783.
an educational institution, THE BEACON ACADEMY, INC. is constituted as
withholding agent for the government required to withhold the tax on compensation
income of its employees, or the withholding tax on income payments to persons
subject to tax pursuant to Section 57 of the Tax Code of 1997, as amended.
Moreover, THE BEACON ACADEMY, INC. is also subject to the payment of the annual
registration fee of PhP500.00 as prescribed in Section 236 (B) of the Tax Code of
1997, as amended. It is also required under Section 6 (C) in relation to Section 237
of the same Code to issue duly registered receipts or sales or commercial invoices
for each sale or transfer of merchandise or for services rendered which are not
directly related to the activities for which they are registered. (RMC No. 76-2003)
other pertinent records of THE BEACON ACADEMY, INC. to determine compliance
with the conditions set forth in the certificate of tax exemption and tax liabilities, if
any. ECaSIT
Tax Exemption Rulings may be renewed upon filing of a subsequent Application for
Tax Exemption/Revalidation, under same requirements and procedures provided in
Revenue Memorandum Order No. 20-2013. Failure to renew the Tax Exemption
Ruling shall be deemed revocation thereof upon the expiration of the three-year
period. The new Tax Exemption Ruling shall be valid for another period of three
years unless sooner revoked or cancelled.
However, if upon investigation, it will be disclosed that the facts are different, then
this ruling shall be considered as null and void.
Very truly yours,

Footnotes
1.
P1,919,500.00 starting January 1, 2012.
12-06-2013 BIR Ruling No. 466-13

December 6, 2013
Section 30 (G) of the Tax Code of 1997;
Gems Heart Outreach Devt., Inc.
Blk. 11 Lot 17 East 1 Myna St.,
Molino 3, Bacoor, 4102 Cavite
Attention: Corazon E. Buenasflores
President
Gentlemen :
This refers to your letter dated 23 August 2011 requesting for the issuance of a
certificate of tax exemption enjoyed by non-stock corporation or associations under
Section 30 of the Tax Code of 1997, as amended. HDIaET
Documents submitted disclose that GEMS HEART OUTREACH DEVT., INC. with
Taxpayer Identification No. 006-325-919-000, is a non-stock, non-profit corporation
registered with the Securities and Exchange Commission (SEC) with SEC Reg. No.
CN200610983 dated 12 July 2006; and that the purposes for which it was
incorporated are:
1.
To access fund from different donors, Government Organizations (GOs), Non
Government Organizations (GOs) and other private individuals for the purposes of
being compassionate and develop quality life of the indigent children, families and
communities in areas to be served by the organization;
2.
To promote the well being of children through access to quality programs on
education, early childhood care, health and nutrition;
3.
To enhance the quality, knowledge, skills, values and attitudes of groups
through professional services, consultations and technical assistance;
4.
To develop and implement programs and services that help augment family
income and promote family life development; and HECTaA
5.
To promote active community participation in the conservation, protection,
and management of the environment to maintain ecological balance.
In support of its request, GEMS HEART OUTREACH DEVT., INC. has completely
submitted the following documents:
1)
Letter of application for tax exemption;
2)
Certified true copies of the Amended Articles of Incorporation and Amended
By-Laws which includes the following provisions:
a.
That the corporation is a non-stock, non-profit association;
b.
under Sec. 30 (G) of the Tax Code of 1997, as amended;
c.
That no part of the property or income of the association shall inure to the
benefit of its members, trustees or officers;
d.
That any member, trustee or officer do not receive compensation or
remuneration for their service to the association; and THIAaD
e.
That in the event of dissolution, the assets of the association shall be
distributed to a similar institution or to the government.
3)
Certified true copies of the Annual Income Tax Returns and corresponding
Financial Statements for the last three (3) years of operation; and
4)
Certification against forum shopping; and
5)
BIR Certificate of Registration.
In reply, please be as follows:

Income tax
Section 30 (G) of the 1997 Tax Code, as amended, provides viz.:

"Sec. 30.
Exempt from Tax on Corporations. The following organization shall
xxx
xxx
xxx
(G)
Civic league or organization not organized for profit but operated exclusively
for the promotion of social welfare;" AETcSa
The Supreme Court, in the case of Commissioner of Internal Revenue vs. St. Luke's
Medical Center, Inc. (G.R. No. 195909 & G.R. No. 195960, September 26, 2012),
declared:
". . . [T]o be exempt from income taxes, Section 30 (G) of the NIRC requires that the
institution be "operated exclusively" for social welfare.
However, the last paragraph of Section 30 of the NIRC qualifies the words
"organized and operated exclusively" by providing that:
Notwithstanding the provisions in the preceding paragraphs, the income of
whatever kind and character of the foregoing organizations from any of their
properties, real or personal, or from any of their activities conducted for profit
regardless of the disposition made of such income, shall be subject to tax imposed
under this Code.
In short, the last paragraph of Section 30 provides that if a tax exempt charitable
institution conducts "any" activity for profit, such activity is not tax exempt even as
its not-for-profit activities remain tax exempt. This paragraph qualifies the
requirements in Section 30 (E) that the "[n]on-stock corporation or association
[must be] organized and operated exclusively for . . . charitable . . . purposes . . . ."
It likewise qualifies the requirement in Section 30 (G) that the civic organization
must be "operated exclusively" for the promotion of social welfare." cHITCS
In the above-cited case, the Supreme Court interpreted the term "exclusive" citing
the case of Lung Center of the Philippines v. Quezon City (G.R. No. 144104, June 29,
2004), which held that:
"[e]xclusive" is defined as possessed and enjoyed to the exclusion of others;
debarred from participation or enjoyment; and "exclusively" is defined, "in a manner
to exclude; as enjoying a privilege exclusively." . . . The words "dominant use" or
"principal use" cannot be substituted for the words "used exclusively" without doing
violence to the Constitution and the law. Solely is synonymous with exclusively."
Wherefore, GEMS HEART OUTREACH DEVT., INC. is a corporation contemplated
under Section 30 (G) of the Tax Code of 1997, as amended. Accordingly, it is exempt
from the payment of tax on income received by it as such organization. However, it
is subject to the corresponding internal revenue taxes imposed under the Tax Code
of 1997 on its income derived from any of its properties, real or personal, or any
activity conducted for profit regardless of the disposition thereof, which income
should be returned for taxation. (BIR Ruling No. 140-11 dated April 29, 2011)
Likewise, interest income from currency bank deposits and yield or any other
monetary benefit from deposit substitute instruments and from trust funds and
similar arrangements, and royalties derived from sources within the Philippines are
subject to the 20% final withholding tax: Provided, however, that interest income
derived by it from a depository bank under the expanded foreign currency deposit
system shall be subject to 7 1/2% final withholding tax pursuant to Section 27 (D)
(1) in relation to Section 57 (A), both of the Tax Code of 1997. (BIR Ruling No. 14011 dated April 29, 2011) HEITAD
It should be understood that the said exempt organization shall be constituted as
withholding agent of the government if it acts as an employer and its employees
receive compensation income subject to the withholding tax under Section 79 (A),
Chapter XIII, Title II of the Tax Code of 1997, as implemented by Revenue
Regulations (Rev. Regs.) No. 2-98, as amended, or if it makes income payments to
individuals or corporations subject to the expanded withholding tax provided for in
Section 57 (B) of the Tax Code of 1997, also as implemented by Rev. Regs. No. 2-98,
as amended.
Value-Added Tax
Moreover, the tax exemption granted to it as a civic league/organization not
organized for profit but operated exclusively for the promotion of social welfare
under Section 30 (G) of the Tax Code of 1997 covers only income taxes for which it
is directly liable.
Section 105 of the Tax Code of 1997 provides that any person who, in the course of
trade or business, sells, barters, exchanges, leases goods or properties, renders
services, and any person who imports goods shall be subject to the value-added tax
(VAT) imposed in Sections 106 to 108 of the same Code.
The phrase "in the course of trade or business" means the regular conduct or
pursuit of a commercial or an economic activity, including transactions incidental
thereto, by any person regardless of whether or not the person engaged therein is a
non-stock, non-profit private organization (irrespective of the disposition of its net
income and whether or not it sells exclusively to members or their guests), or
government entity. HCITcA
Accordingly, if GEMS HEART OUTREACH DEVT., INC. is engaged in the sale of goods
or services in the course of a business pursuit, including transactions incidental
thereto, in general, it shall be liable for VAT. (BIR Ruling No. 080-11 dated March 15,
2011)
Notwithstanding that it is not organized for profit but operated exclusively for the
promotion of social welfare, its purchase of goods or properties or services and
importation of goods shall nevertheless be subject to the 12% VAT pursuant to
Section 107 of the said Code. (BIR Ruling No. 060-11 dated March 4, 2011)
It should be noted that VAT is an indirect tax payable by the seller and not by the
purchaser of goods. However, being an indirect tax, it can be shifted or passed on to
the buyer/purchaser, transferee or lessee of the goods, properties or services. Once
shifted to the buyer/customer as an addition to the cost of goods or services sold, it
is no longer a tax but an additional cost which the buyer/customer has to pay in
order to obtain the goods or services. Thus, the shifting of the VAT to it does not
make it the person directly liable and therefore, it cannot invoke its tax exemption
privilege under Section 30 of the Tax Code of 1997 to avoid the passing on or
shifting of the VAT.
Revenue from contributions and donations, not being derived from sale of services
or sale of goods made in the course of business but rather in connection with its
operation for the promotion of social welfare, is exempt from the 12% VAT. SEHTIc
Donor's tax
Inasmuch as GEMS HEART OUTREACH DEVT., INC. is a social welfare foundation,
donations to it are exempt from the payment of donor's tax pursuant to Section 101
(A) (3) of the Tax Code of 1997, subject to the condition that not more than thirty
percent (30%) of said gift shall be used for administration purposes. (BIR Ruling No.
052-11 dated February 25, 2011)
Deductibility of donation
Section 3 of Revenue Regulation (RR) No. 13-98 provides:
SEC. 3.
Donations to Accredited Non-stock, Non-profit Corporations/NGOs.
Donations to accredited non-stock, non-profit corporations/NGOs shall be entitled to
the following benefits:
(1)
Limited Deductibility Donations, contributions or gifts actually paid or
made within the taxable year to accredited non-stock, non-profit corporations shall
be allowed limited deductibility in an amount not in excess of ten percent (10%) for
an individual donor, and five percent (5%) for a corporate donor, of the donor's
income derived from trade, business or profession as computed without the benefit
of this deduction.
(2)
Full Deductibility Donations, contributions or gifts actually paid or made
within the taxable year to accredited NGOs shall be allowed full deductibility,
subject to the following conditions: HEaCcD
i)
The accredited NGO shall make utilization directly for the active conduct of
the activities constituting the purpose or function for which it is organized and
operated, not later than the fifteenth (15th) day of the third month after the close of
the accredited NGOs taxable year in which contributions are received, unless an
extended period is granted by the Secretary of Finance, upon recommendation of
the Commissioner.
For this purpose, the term "utilization" shall have the meaning as defined under Sec.
1(c) of these Regulations.
ii)
The level of administrative expenses of the accredited NGO, shall, on an
annual basis, not exceed thirty percent (30%) of the total expenses for the taxable
year;
iii)
In the event of dissolution, the assets of the accredited NGO, would be
distributed to another accredited NGO organized for similar purpose or purposes, or
to the State for public purpose, or purposes, or to the state for public purpose, or
would be distributed by a competent court of justice to another accredited NGO to
be used in such manner as in the judgment of said court shall best accomplish the
general purpose for which the dissolved organization was organized. ASaTHc
iv)
The amount of any charitable contribution of property other than money shall
be based on the acquisition cost of said property.
v)
All the members of the Board of Trustees of the non-stock, non-profit
corporation, organization or NGO do not receive compensation or remuneration for
their service to the aforementioned organization.
Furthermore, Section 1 (a) and (b) of RR 13-98 provides that:
(a)
"Non-stock, non-profit corporation or organization" shall refer to a
corporation or association/organization referred to under Section 30 (E) and (G) of
the Tax Code created or organized under Philippine laws exclusively for one or more
of the following purposes:
1.
religious;
2.
charitable;
3.
scientific;
4.
athletic;
5.
cultural;
6.
rehabilitation of veterans; and
7.
social welfare
no part of the net income or asset of which shall belong to or inure to the benefit of
any member, organizer, officer or any specific person. IaAEHD
(b)
"Non-government Organization (NGO)" shall refer to a non-stock, non-profit
domestic corporation or organization as defined under Section 34 (H) (2) (c) of the
Tax Code organized and operated exclusively for scientific, research, educational,
character-building and youth and sports development, health, social welfare,
cultural or charitable purposes, or a combination thereof, no part of the net income
of which inures to the benefit of any private individual."
Foregoing considered, donors can avail of the full deductibility only for donations,
contributions or gifts actually paid or made within the taxable year to accredited
NGOs.
Accordingly, for purposes of full deductibility from the taxable business income of its
donor, GEMS HEART OUTREACH DEVT., INC. must first be accredited with the
Philippine Council for NGO Certification, Inc. (PCNC) which has been duly designated
by the Secretary of Finance as the Accrediting Entity pursuant to Memorandum of
Agreement dated January 29, 1998 executed by and between the Secretary of
Finance and PCNC's Interim Chairman.
For further inquiries on the accreditation and certification process, please visit PCNC
at 6/F, SCC Building, CFA-MA Compound, 4427 Interior Old Sta. Mesa, 1016 Manila
or call their office at 715-9594, 715-2756, 782-1568 and 715-2783 (telefax). You
may also visit their website: http:/www.pcnc.com.ph or email them at
pcnc@pldtdsl.net. cCSDaI
Moreover, it is required to file on or before the 15th day of the fourth month
following the end of the accounting period a Profit and Loss Statement and Balance
Sheet with the Annual Information Return under oath, stating its gross income and
expenses incurred during the preceding period and a certificate showing that there
has not been any change in its By-laws, Articles of Incorporation, manner of
operation and activities as well as sources and disposition of income. (BIR Ruling No.
108-11 dated April 7, 2011)
Under Section 235 of the Tax Code of 1997, any provision of existing general and
special law to the contrary notwithstanding, the books of accounts and other
pertinent records of tax-exempt organization or grantees of tax incentives shall be
subject to examination by the BIR for purposes of ascertaining compliance with the
conditions under which it has been granted tax exemptions or tax incentives, and its
tax liabilities, if any.
Finally, it is subject to the payment of the annual registration fee of PhP500.00 as
prescribed in Section 236 (B) of the Tax Code of 1997, as amended. It is also
required under Section 6 (C) in relation to Section 237 of the same Code to issue
duly registered receipts or sales or commercial invoices for each sale or transfer of
merchandise or for services rendered which are not directly related to the activities
for which the Association is registered. [Revenue Memorandum Circular (RMC) No.
76-2003] acADIT
It is requested that a copy of this letter of exemption be attached to the
aforementioned Annual Information Return.
The tax exemption ruling may be renewed upon filing of a subsequent Application
for Tax Exemption/Revalidation provided under the same requirements and
procedures provided under Revenue Memorandum Order (RMO) No. 20-2013. Failure
to renew the Tax Exemption Ruling shall be deemed revocation thereof upon the
expiration of the three (3)-year period. The new Tax Exemption Ruling shall be valid
for another period of three (3) years, unless sooner revoked or cancelled.
Very truly yours,
12-06-2013 BIR Ruling No. 465-13

December 6, 2013
RA No. 7279; BIR Ruling No. 109-13
Samahang Magkakapitbahay ng San Antonio De Padua
Homeowners' Association, Inc.
Lot 1-E Blk. II, Senatorial St., Dolor Estate
Batasan Hills, Quezon City
Attention: Andres Viacrusis
President
Gentlemen :
This refers to your letter July 26, 2013 requesting tax exemption from the payment
of Capital Gains Tax and other taxes of the sale transaction between Rodolfo Acua
Go married to Rosita Luy Go and Samahang Magkakapitbahay ng San Antonio De
Padua Homeowners' Association, Inc. in accordance with the Republic Act No. 7279,
otherwise known as the Urban Development and Housing Act of 1992. ATaDHC
Documents submitted disclosed that Rodolfo Acua Go (married to Rosita Luy Go)
(hereinafter referred to as landowner) is the registered owner of a parcel of land,
identified as Lot 1-E of the subdn. Plan (LRC) Psd-12083, being a portion of Lot 1,
described on plan Pcs-2874, LRC (GLRO) Rec. No. 1037 covered by Transfer
Certificate of Title (TCT) No. RT-129524 (234011) issued by the Registry of Deeds for
the Quezon City. The aforesaid property is situated at Batasan, Quezon City with an
area of Two Thousand Five Hundred Thirty Five square meters (2,535 sq.m.), more
or less. Samahang Magkakapitbahay ng San Antonio De Padua Homeowners'
Association, Inc. (TIN 409-420-198-000), on the other hand, is a homeowner's
organization duly registered with the Housing and Land Use Regulatory Board
(HLURB). On June 7, 2013, the landowner and Samahang Magkakapitbahay ng San
Antonio De Padua Homeowners' Association, Inc. executed a Deed of Absolute Sale,
whereby the landowner transferred and conveyed One Thousand Nine Hundred Fifty
Six square meters (1,956 sq.m.) portion of the subject property to the latter at an
agreed price of Two Million Nine Hundred Thirty Four Thousand Pesos
(P2,934,000.00). Pursuant to the Certification dated February 12, 2013 issued by
Social Housing Finance Corporation (SHFC), One Thousand Nine Hundred Fifty Six
square meters (1,956 sq.m.) out of the Two Thousand Five Hundred Thirty Five
square meters (2,535 sq.m.) covered by TCT No. RT-129524 (234011) is actually a
Community Mortgage Program (CMP) Project and shall be proportionately
distributed to the association's qualified member-beneficiaries. 1 For this purpose,
Samahang Magkakapitbahay ng San Antonio De Padua Homeowners' Association,
Inc. secured a housing loan under the CMP, a financing assistance program of the
SHFC a subsidiary of the National Home Mortgage Finance Corporation (NHMFC).
In support of its request, Samahang Magkakapitbahay ng San Antonio De Padua
Homeowners' Association, Inc. has completely submitted on October 10, 2013 the
following documents: EACIcH
1)
2)
Certification of the President of the SHFC that the subject property qualifies
and is actually a CMP project;
4) * Certified true copy of the Deed of Absolute Sale to the Community
Association;
5)
Certified true copy of the Articles of incorporation of the Community
Association;
6)
Certified true copy of the Masterlist of Qualified Beneficiaries duly certified by
the SHFC;
7)
Certified true copies of the TCT and Latest Tax Declaration of the Property
Sold to the Community Association;
8)
Certified true copy of the Location Plan of the Lot Sold to the Community
Association;
9)
TIN ID/BIR Certificate of Registration of the seller and the Homeowner
Association; and
10)
In reply, please be informed that pursuant to Sections 20 and 32 of RA No. 7279,

pertinent portions of which state that: SEcITC
"Sec. 20.
Incentives for Private Sector Participating in Socialized Housing. To
encourage greater private sector participation in socialized housing and further
reduce the cost of housing units for the benefit of the underprivileged and
homeless, the following incentives shall be extended to the private sector:
(d)
Exemption from the payment of the following:
(2)
Capital gains tax on raw lands used for the project;
xxx
xxx
xxx
Sec. 32.
Incentives. To encourage its wider implementation, participants in
the CMP shall be granted with the following privileges or incentives:
xxx
xxx
xxx
(b)
Properties sold under the CMP shall be exempted from the capital gains tax;
and"
the landowner who sold his property for use in a socialized housing project is
exempt from the payment of capital gains tax. Such being the case, the sale by the
landowner to Samahang Magkakapitbahay ng San Antonio De Padua Homeowners'
Association, Inc. of One Thousand Nine Hundred Fifty Six square meters (1,956
sq.m.) portion of the properties covered by TCT No. RT-129524 (234011) is exempt
from the capital gains tax. (BIR Ruling No. 109-13 dated March 21, 2013) DISaEA
Upon issuance of this letter of exemption, and upon registration of the document of
sale, a lien on the Certificate of Title of the land to be issued in the name of the
Homeowners Association shall be caused to be annotated by the Register of Deeds
having jurisdiction over the property, to the effect that the said property shall be
used for socialized housing pursuant to RA No. 7279. (BIR Ruling No. 109-13 dated
March 21, 2013)
However, the documentary stamp tax is not one of the taxes covered by the tax
exemption clause in Sec. 20 of RA 7279. Accordingly, the landowner is liable to pay
the documentary stamp tax on the document conveying the afore-stated property
imposed under Section 196 of the Tax Code of 1997, based on the consideration
contracted to be paid for such realty or its fair market value determined in
accordance with Section 6 (E) of the said Code, whichever is higher. (BIR Ruling No.
109-13 dated March 21, 2013)
It is, however, understood 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 title 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). The CAR shall only be issued
after the submission of the requirements provided under RMO 15-2003. (BIR Ruling
No. 109-13 dated March 21, 2013)
Notwithstanding the foregoing, the Bureau of Internal Revenue shall conduct
verification and post-audit that the actual occupants of the property transferred
under the CMP are qualified beneficiaries and therefore, the seller is entitled to
exemption from capital gains tax or income tax imposed under the Tax Code of
1997.
then this ruling shall be considered as null and void. HTDcCE
Very truly yours,
ANNEX
Samahang Magkakapitbahay ng San Antonio De Padua Homeowners' Association,
Inc.
Lot 1-E Blk. II, Senatorial St., Dolor Estate
Batasan Hills, Quezon City
Name of Beneficiary
Blk.
Lot
Total Area
No.
No.
1.
Juanitas, Mesa S.
2.
(sq.m.)
2
33
Maglente, George P.
3.
Maglente, Jack P.
33
4.
Jacosalem, Nenita V.
5.
Lapera, Julie Ann P. 2
33
6.
Lapera, Jeofrey L.
33
7.
Arizo, Jocelyn C.
33
8.
Rama, Jovelyn C.
33
9.
Jacosalem, Jamie Jr. C.
10
33
10.
Furigay, Mark Anthony L. 2
11
33
11.
Darantinao, Dechie A.
33
12.
De Vera, Grace D. 3
33
13.
Celso, Reynal G.
33
14.
Figurasion, Jino H. 3
33
15.
Celso, Aris F. 3
33
16.
Martines, Rodolfo R.
33
17.
Saturinio, Orlando A.
33
18.
Celso, Kyrene G.
33
19.
Gutierrez, Benjamin V.
20.
Dela Torre, Mario L. 3
10
33
21.
Serano, Edna B.
11
33
22.
Celso, Melisa F.
12
33
23.
Tan, Jennifer D.
13
33
24.
Matuloy, Rowena S.
14
33
25.
Abesamis, Rena Rose B.
15
33
33
33
33
26.
Bijar, Michael J.
27.
16
33
Nacepo, Loremon D.
17
28.
Jordan, Sally M.
18
33
29.
Portes, Daisy3
19
33
30.
Viacrusis, Andres G.
20
31.
Cabaltiera, Emly S. 4
33
32.
Bobis, Edgardo G. 4
33
33.
Maceda, Mabel B. 4
33
34.
Maceda, Marlan B. 4
33
35.
Milliona, Ma. Lourdes Y.
33
36.
Jabal, Ma. Angelita Y.
33
37.
Maceda, Goronio G.
33
38.
Gonzales, Genisis G.
33
39.
Bona, Wilfreda M.
33
40.
Cuao, Vertchille M.
10
41.
Pardo, Nicasio M. Jr.4
12
33
42.
Dioneda, Dorothy B.
13
33
33
33
33
Footnotes
1.
See Annex for the masterlist of qualified beneficiaries.
12-06-2013 BIR Ruling No. 464-13

December 6, 2013
Pagsabungan Community Homeowners Association, Inc.

Upper Hermag, Tabok, Mandaue City
Attention: Dante Pradilla
President
Gentlemen :
This refers to the letter of Ma. Ana R. Oliveros, President of Social Housing Finance
Corporation (SHFC) dated September 4, 2013, endorsing the sale transaction
between Sps. Camilo Tarona & Caridad B. Tarona and Pagsabungan Community
Homeowners Association Inc. for exemption from the payment of Capital Gains Tax
and other taxes in accordance with the Republic Act (RA) No. 7279, otherwise known
as the "Urban Development and Housing Act of 1992". TDaAHS
Documents submitted disclose that Sps. Camilo Tarona & Caridad B. Tarona
(hereinafter referred to as Landowners) are the registered owners of a parcel of
land, identified as Lot 885-A of the subdivision plan, Psd-07-035510 being a portion
of Lot 885, II-5121 Amd. 2 covered by Transfer Certificate of Title (TCT) No. 38843
issued by the Registry of Deeds for the City of Mandaue. The aforesaid property is
situated at Brgy. Tabok, Mandaue City with an area of One Thousand Two Hundred
square meters (1,200 sq.m.), more or less. Pagsabungan Community Homeowners
Association, Inc. (TIN 242-152-498-000), on the other hand, is a homeowner's
organization duly registered with the Housing and Land Use Regulatory Board
(HLURB). On March 28, 2011, the parties executed Deed of Absolute Sale, whereby
the Landowners transferred and conveyed the subject property to Pagsabungan
Community Homeowners Association, Inc. at an agreed price of Two Million Four
Hundred Thousand Pesos (P2,400,000.00). Pursuant to the certification issued by
SHFC, the property covered by TCT No. 38843 is actually a Community Mortgage
Program (CMP) Project and shall be proportionately distributed to the association's
qualified member-beneficiaries. 1 For this purpose, Pagsabungan Community
Homeowners Association, Inc. secured a housing loan under the CMP, a financing
assistance program of the SHFC a subsidiary of the National Home Mortgage
Finance Corporation (NHMFC).
In support of its request, Pagsabungan Community Homeowners Association, Inc.
has completely submitted on October 22, 2013 the following documents: cETCID
1)
SHFC letter application for tax exemption;
2)
3)
Certified true copy of the Letter-Guaranty;
4)
Certified true copy of the Deed of Absolute Sale to the Community
Association;
5)
Association;
6)
the SHFC;
7)
8)
Association;
9)
Association; and SHADcT
10)

pertinent portions of which state that:
"Sec. 20.
(d)
(2)
xxx
xxx
xxx
Sec. 32.
xxx
xxx
xxx
(b)
and" TAacCE
the landowners who sold their properties for use in a socialized housing project are
landowners to Pagsabungan Community Homeowners Association, Inc. of the
property covered by TCT No. 38843 is exempt from the capital gains tax.
Homeowners Association shall be annotated by the Register of Deeds having

jurisdiction over the property, to the effect that the said property shall be used for
socialized housing pursuant to RA No. 7279. (BIR Ruling No. 109-13 dated March 21,
2013)
exemption clause in Sec. 20 of RA 7279. Accordingly, the landowners are liable to
pay the documentary stamp tax on the documents conveying the afore-stated
property imposed under Section 196 of the Tax Code of 1997, based on the
consideration contracted to be paid for such realty or its fair market value
determined in accordance with Section 6 (E) of the said Code, whichever is higher.
(BIR Ruling No. 109-13 dated March 21, 2013)
No. 109-13 dated March 21, 2013) CIDTcH
1997.
then this ruling shall be considered as null and void.
Very truly yours,
ANNEX
Pagsabungan Community Homeowners Association, Inc.
Upper Hermag, Tabok, Mandaue City
Blk.
Lot No.
Total Area
Name of Beneficiary
No.
1.
Catayong, Romulo 01
01
45.0512
Pelayo, Saldo
01
02
40.9556
3.
Retuerto, Luz
01
03
40.9556
4.
Sabaricos, Leah
01
04
40.9556
5.
Mamulang, Mateo 01
05
49.1468
6.
Heramil, Emiliano 01
06
40.9556
7.
Retuerto, Lezieda
01
07
40.9556
8.
Decierdo, Agapito 01
08
40.9556
9.
Albofera, Jeffrey
01
09
40.9556
10.
Albofera, Janet
01
10
40.9556
11.
Ylanan, Joy
11
40.9556
12.
Mamulang, Marlone
01
12
13.
Maglasang, Janeth 01
13
34.1297
14.
Rosell, Leo
01
14
34.1297
15.
Gaviola, Wilson
01
17
36.8601
16.
Satorre, Ruel G.
01
18
40.9556
17.
Roble, Helen 01
19
40.9556
18.
Ugnay, Jennifer
02
01
19.
Ho, Avelina 02
02
40.9556
20.
Pradilla, Dante
02
03
40.9556
21.
Pahulas, Virgilia R. 02
04
40.9556
22.
Mendoza, Rosie R. 02
05
42.3208
23.
Luchavez, Edelito
02
06
40.9556
24.
Salentes, Marile
02
07
40.9556
25.
Gajudo, Bernadeth S.
02
08
01
(sq.m.)
40.9556
47.7816
40.9556
26.
Satorre, Danilo Jr.
02
09
40.9556
Footnotes
1.
12-06-2013 BIR Ruling No. 463-13

December 6, 2013
Bagong Pag-Asa Homeowners Association, Inc. Phase 5
Hangar, Mabuhay, General Santos City
Attention: Fatima Isuzana Sugod
President
Gentlemen :
Corporation (SHFC) dated October 1, 2013, endorsing the sale transaction between
Federico Limjuco, et al. and Bagong Pag-asa Homeowners Association, Inc. Phase 5
for exemption from the payment of Capital Gains Tax and other taxes in accordance
with the Republic Act (RA) No. 7279, otherwise known as the "Urban Development
and Housing Act of 1992". aHCSTD
Documents submitted disclose that Federico Limjuco (TIN 931-751-504-000)
married to Beverly Alunan, Anita F. Catotal (TIN 102-665-906-000), Jeffrey F. Catotal
(TIN 123-944-425) married to Margarita Paz Catotal and Nenita Catotal-Delos Santos
(TIN 179-381-392-000) married to Nilo De Los Santos (hereinafter referred to as
Landowners) are the registered owners of a parcel of land, identified as Lot-802-E of
the Subdivision Plan Psd-12-059365 being portion of Lot-802, Pls-209-D-11 covered
by Transfer Certificate of Title (TCT) No. 147-2012001798 issued by the Registry of
Deeds for General Santos City. The aforesaid property is situated at Brgy. Mabuhay,
General Santos City with an area of Twenty Five Thousand square meters (25,000
sq.m.), more or less. Bagong Pag-asa Homeowners Association, Inc. Phase 5 (TIN
409-424-456-000), on the other hand, is a homeowner's organization duly
registered with the Housing and Land Use Regulatory Board (HLURB). On August 2,
2013, the parties executed a Deed of Absolute Sale whereby the Landowners, thru
their Attorney-in-Fact, Anita F. Catotal, transferred and conveyed Fifteen Thousand
Six Hundred Ninety Two and 95/100 square meters (15,692.95 sq.m.) of the subject
property to Bagong Pag-asa Homeowners Association, Inc. Phase 5 at an agreed
price of Eight Million Three Hundred Eighty Thousand Thirty Four and 55/100 Pesos
(P8,380,034.55). Pursuant to the certification issued by SHFC, Fifteen Thousand Six
Hundred Ninety Two and 95/100 square meters (15,692.95 sq.m.) out of Twenty Five
Thousand square meters (25,000 sq.m.) covered by TCT No. 147-2012001798
actually comprise a Community Mortgage Program (CMP) Project and shall be
proportionately distributed to the association's qualified member-beneficiaries. 1 For
this purpose, Bagong Pag-asa Homeowners Association, Inc. Phase 5 secured a
housing loan under the CMP, a financing assistance program of the SHFC a
subsidiary of the National Home Mortgage Finance Corporation (NHMFC).
In support of its request, Bagong Pag-asa Homeowners Association, Inc. Phase 5 has
completely submitted on October 29, 2013 the following documents: STIcaE
1)
2)
3)
4)
Association;
5)
Association;
6)
the SHFC;
7)
8)
Association;
9)
Association; and
10)

pertinent portions of which state that: HCTAEc
"Sec. 20.
(d)
(2)
xxx
xxx
xxx
Sec. 32.
xxx
xxx
xxx
(b)
and"
landowners to Bagong Pag-asa Homeowners Association, Inc. Phase 5 of Fifteen
Thousand Six Hundred Ninety Two and 95/100 square meters (15,692.95 sq.m.)
portion of the property covered by TCT No. 147-2012001798 is exempt from the
capital gains tax. cHDaEI
2013)
(BIR Ruling No. 109-13 dated March 21, 2013)
No. 109-13 dated March 21, 2013)
1997.
then this ruling shall be considered as null and void. DACTSH
Very truly yours,
ANNEX
Bagong Pag-Asa Homeowners Association, Inc. Phase 5
Blk. No.
Lot
Total Area
Name of Beneficiary
No.
(sq.m.)
Pascua, Jane B.
204.90
Baay, Rony Boy B. 1
169.34
Delantar, Richard D.
Taypin, Andy L.
169.34
Laud, Alexander D. 1
169.34
Bantaculo, Rudy E. 1
169.34
Roman, Cornelio M.1
169.34
Pagunsan, Eva Cristine R. 1
169.34
Tangkawan, Renato D.
11
169.34
10
Mercado, Ryan S.
12
169.34
169.34
11
Pagunsan, Imelda R.
13
12
Garino, Jean A.
15
203.21
13
Sacolles, Rydes E. 2
169.34
14
Jacinto, Flaridel S. 2
169.34
15
Tarrosa, Ma. Theresa T.
169.34
16
Suelan, Marc Gabriel T.
169.34
17
Suelan, Valen Grace T.
169.34
18
Gomez Jr., Jesus D. 2
169.34
19
Uyco, Riceh D.
169.34
20
Villoso, Mary Lou U.
21
Uyco, Melodina E. 2
10
169.34
22
Uyco, Joselito E.
11
169.34
23
Ea, Leo A.
13
169.34
24
Cerna, Junelyn S.
14
25
Dela Cruz, Mary Grace M. 2
15
169.34
26
Lopez, Jenny Mae V.
16
169.34
27
Cano, Rommel B.
17
169.34
28
Villa, Jimly B.2
18
169.34
29
Bayhon, Joseph C. 2
19
169.34
30
Celeste, Jinky Mae V.
20
31
Celeste, Ofelia M.
21
169.34
32
Alim, Herminia B.
22
169.34
33
Alim, Christian Andreo B. 2
23
34
Espuerta, Elda L.
24
169.34
35
Moreno, Filomena B.
25
169.34
36
Malunes, Ma. Dulce A.
26
169.34
169.34
169.34
169.34
169.34
169.34
37
Bias, Anabel L.
38
27
169.34
Magsipoc, Mel Adrian L.
28
39
Amora, Marlon B.
169.34
40
Blanco, Angelito L. 4
11
169.34
41
Flores, Anabel S.
12
169.34
42
Castaeda, Lorna M.
13
169.34
43
Castaeda Mary Ann B.
14
169.34
44
Pascual, Rhomin Laurence E.
15
45
Nadua, Leo V.
159.18
46
Vicente, Marvin Roy G.
47
Coling, Claridel H. 5
169.34
48
Hollero, Joylieta M. 5
169.34
49
Alcopra, Ma. Teresa B.
50
Pon-An, Virgie P.
169.34
51
Ta-Aca, Josephine M.
169.34
52
Canarejo, Lonelissa Dee T.
53
Olasiman, May S.
10
169.34
54
Hortal, Don Roger C.
13
169.34
55
Hortal, John Roger C.
14
169.34
56
Babas, Dennis B.
15
159.18
57
Hortal, Princess Rosshien L.
16
58
Hortal, Sherelene L.
17
159.18
59
Lamay, Susan M.
194.74
60
De Castro, Dunessa M.
61
Dacera, Leandro S. 6
169.34
62
Estores, Karen Mae Y.
169.34
159.18
169.34
169.34
169.34
162.57
169.34
169.34
63
Medino, Richell Grace L.
64
Cambongga, Rey P. 6
193.05
65
Malayon, Rowena C.
66
Paler, Harold C.
169.34
67
Tingal, Berrani L.
169.34
68
Robles, Hilda D.
169.34
69
Bendal, Joel Jr. V.
169.34
70
Hortal, Aprilynne C.8
189.66
71
Gabutin, Vilma R.
189.66
72
Godinez, Meriam P. 9
169.34
73
Miole, Lucia Luzviminda M.
74
Sasuman, Mary Ann L.
169.34
75
Sabillo, Antonio E. 9
169.34
76
Abrasaldo, Lino Jr. C.
11
77
Pablo, Rialyn A.
12
169.34
78
Sugod, Fatima Isuzana S. 9
14
169.34
79
Harid, Almira Princess S. 10
157.49
80
Muchuelas Marilyn P.
10
159.18
81
Felicilda, Cristina W.
10
169.34
82
Wes, Ma. Lorina C. 10
169.34
83
Dilidili, Devine A.
10
169.34
84
Baylon, Felixbert D.10
169.34
85
Carrion, Ginalyn P. 10
169.34
86
Espin, Rizza F.
169.34
87
Polistico, Charles G.
10
88
Ida, Latabe E.
10
169.34
10
10
169.34
193.05
169.34
169.34
169.34
89
Carlon, Jocelyn P.
10
11
169.34
90
Pitong, Joel M.
10
12
169.34
91
Barrientos, Cynthia F.
10
13
92
Batu, Enrico J.
14
169.34
10
169.34
Footnotes
1.
12-06-2013 BIR Ruling No. 462-13

December 6, 2013
Bagong Pag-Asa Homeowners Association, Inc. Ph IV
Attention: Antonio Sargado
President
Gentlemen :
Corporation (SHFC) dated October 1, 2013, endorsing the sale transaction between
Federico Limjuco, et al. and Bagong Pag-asa Homeowners Association, Inc. Ph IV for
exemption from the payment of Capital Gains Tax and other taxes in accordance
with the Republic Act (RA) No. 7279, otherwise known as the "Urban Development
and Housing Act of 1992". TECIHD
Documents submitted disclose that Federico Limjuco (TIN 931-751-504-000)
married to Beverly Alunan, Anita F. Catotal (TIN 102-665-906-000), Jeffrey F. Catotal
(TIN 123-944-425) married to Margarita Paz Catotal and Nenita Catotal-Delos Santos
(TIN 179-381-392-000) married to Nilo De Los Santos (hereinafter referred to as
Landowners) are the registered owners of a parcel of land, identified as Lot-802-D of
the Subdivision Plan Psd-12-059365 being portion of Lot-802, Pls-209-D-11 covered
by Transfer Certificate of Title (TCT) No. 147-2012001797 issued by the Registry of
Deeds for General Santos City. The aforesaid property is situated at Brgy. Mabuhay,
General Santos City with an area of Twenty Five Thousand square meters (25,000
sq.m.), more or less. Bagong Pag-asa Homeowners Association, Inc. Ph IV (TIN 296679-918-000), on the other hand, is a homeowner's organization duly registered
with the Housing and Land Use Regulatory Board (HLURB). On August 2, 2013, the
parties executed a Deed of Absolute Sale whereby the Landowners, thru their
Attorney-in-Fact, Anita F. Catotal, transferred and conveyed Sixteen Thousand Five
Hundred Forty Seven and 16/100 square meters (16,547.16 sq.m.) of the subject
property to Bagong Pag-asa Homeowners Association, Inc. Ph IV at an agreed price
of Eight Million Eight Hundred Thirty Six Thousand One Hundred Eighty Four and
61/100 Pesos (P8,836,184.61). Pursuant to the certification issued by SHFC, Sixteen
Thousand Five Hundred Forty Seven and 16/100 square meters (16,547.16 sq.m.)
out of Twenty Five Thousand square meters (25,000 sq.m.) covered by TCT No. 1472012001797 actually comprise a Community Mortgage Program (CMP) Project and
shall be proportionately distributed to the association's qualified memberbeneficiaries. 1 For this purpose, Bagong Pag-asa Homeowners Association, Inc. Ph
IV secured a housing loan under the CMP, a financing assistance program of the
SHFC a subsidiary of the National Home Mortgage Finance Corporation (NHMFC).
In support of its request, Bagong Pag-asa Homeowners Association, Inc. Ph IV has
completely submitted on October 29, 2013 the following documents:
1)
2)
3)
4)
Association;
5)
Association;
6)
the SHFC;
7)
8)
Association; ITSCED
9)
Association; and
10)

"Sec. 20.
(d)
(2)
xxx
xxx
xxx
Sec. 32.
the CMP shall be granted with the following privileges or incentives: HcDATC
xxx
xxx
xxx
(b)
and"
landowners to Bagong Pag-asa Homeowners Association, Inc. Ph IV of Sixteen
Thousand Five Hundred Forty Seven and 16/100 square meters (16,547.16 sq.m.)
portion of the property covered by TCT No. 147-2012001797 is exempt from the
capital gains tax.
2013)
(BIR Ruling No. 109-13 dated March 21, 2013) EcHTCD
No. 109-13 dated March 21, 2013)
1997.
then this ruling shall be considered as null and void. ITScAE
Very truly yours,
ANNEX
Bagong Pag-Asa Homeowners Association, Inc. Ph IV
Blk. No.
Lot
Total Area
Name of Beneficiary
No.
(sq.m.)
Sumanting, Ruben A.
168.32
Cagongon, Alejandro Jr. A. 1
168.32
Magaso, Armando C.
168.32
Alonzo, Richard C. 1
168.32
Villamil, Proceso II J.
10
168.32
Malino, Reymund N.
11
168.32
Hepi, Marieta G.
201.98
Mendoza, Leo D.
168.32
Cuna, Henry S.
168.32
10
Alvarez, Rosemarie A.
11
Bayron, Arlene A.
168.32
12
Barro, Mabeth M.
168.32
13
Besinga, Julie Anne L.
14
Gulada, Arlene S.
168.32
15
Cloma, Liza E.
168.32
16
Romares, Alain C. 2
11
168.32
17
Sargado, Antonio F. 2
12
168.32
18
Martinez, Herman II L.
13
168.32
19
Aceberos, Reynaldo A.
14
168.32
20
Arevalo, Rey C.
15
201.98
21
Belgira, R-Nel R.
175.05
22
Ruto, Emily F.
175.05
23
Belgira, Marnelee R.
168.32
24
Cantomayor, Marwin C.
168.32
25
Ancheta, Erlie E.
168.32
26
Ancheta, Ely E.
168.32
27
Obenza, Arielito A. 5
168.32
28
Agustin, Carlo G.
168.32
29
Bongay, Marieta P. 5
10
168.32
30
Pontejo, Larry C.
15
175.05
31
Nabor, Freddie Jr. T. 5
16
178.42
32
Poloy, Epefania C. 5
17
175.05
33
Tangayan, Edilberto Jr. T. 6
34
Romero, Nita B.
175.05
35
Torcino, Grace M.
168.32
168.32
168.32
175.05
36
Dalanon, Roger D. 6
168.32
37
Lapiz, Rolando A.
168.32
38
Nabua, Jose P.
168.32
39
Tupas, Cernan G.
168.32
40
Pascua, Renato D. 6
168.32
41
De Juan, Jonalie T. 6
168.32
42
Cataylo, Arlyn R.
11
168.32
43
Rodis, Arnold L.
12
168.32
44
Dela Cruz, Mary Joy E.
13
45
Fetros, Braziel C.
14
168.32
46
Tomenio, Jocelyn E. 6
15
175.05
47
Sales, Ellen Jay B. 6
16
178.42
48
Sales, Rom Kenneth B.
17
49
Castro, Nikki Joy V. 7
185.15
50
Erojo, Joena P.
183.46
51
Barber, Margarita D.
52
Erojo, Minda P.
168.32
53
Alvior, Maria Socoro G.
257.52
54
Fuentes, Vergilio Jr. F.
168.32
55
Samaniego, Richard T.
168.32
56
Figuracion, Arnold I.
180.10
57
Gesulga, Cheryl P. 9
180.10
58
Famatiga, Sherwin S.
10
59
Espino, Job D.
10
175.05
60
Lacdo-O, Rona B.
10
168.32
61
Ampoon, Josephine D.
10
168.32
175.05
168.32
175.05
168.32
62
Cabanog, Francisca M.
10
63
Mier, Arnold G.
168.32
64
Villanueva, Gretchen M.
10
65
Damaso, Berma O. 10
168.32
66
Naya, Bethwell M. 10
10
168.32
67
Balleras, Fe E.
10
11
168.32
68
Docusin, Renato F. 10
12
168.32
69
Corporal, Margareth L.
10
13
70
Alabe, Meriam C.
11
175.05
71
Jabillo, Jernilu R.
11
175.05
72
Lumasag, Jeyson M.
11
168.32
73
Salvador, Mishelle L.
11
168.32
74
Patropez, Elizabeth V.
11
168.32
75
Dolutan, Maria B.
168.32
76
Jaya, Christopher S.
11
10
77
Rival, Eric C. 11
168.32
78
Hanopol, Joemar V. 11
12
168.32
79
Jandumon, Arlene A.
11
13
168.32
80
De Asis, Geraldine P.
11
15
175.05
81
Mancera, Miguel L. 11
16
178.42
82
Pudadera, Noel A. 11
17
175.05
83
Muico, Junard Jay N.
12
195.25
84
Perez, Richel May M.
12
168.32
85
Revuelta, Angel Jr. S.
12
168.32
86
Abregana, Riza J.
12
168.32
87
Joloro, Berlicita A. 12
168.32
10
11
11
168.32
168.32
168.32
168.32
88
Joloro, Randy C.
12
168.32
89
Joloro, Ricky C.
12
168.32
90
Fortin, Arnel A.
12
168.32
91
Amarille, Jovy M.
12
10
168.32
92
Estrella, Romy C.
12
11
168.32
93
Muico, Nora N.
12
12
168.32
94
Muico, Cherry Lyn N.
12
13
95
Mier, Romy G.
12
14
168.32
96
Hao, Jonathan S.
12
15
193.56
168.32
Footnotes
1.
12-06-2013 BIR Ruling No. 459-13

December 6, 2013
Section 4 (3), Article XIV, 1987 Constitution; Sections 27 (A), (B), (D) (1), 30 (H); 57;
101 (A) (3); 105; 109 (H), 235; 236 (B); 237 of the 1997 Tax Code, as amended;
Department Order No. 137-87 as amended by Department Order No. 92-88;
Department Order No. 149-95; RMC No. 76-2003; BIR Ruling No. 059-13; BIR Ruling
No. 548-12; BIR Ruling No. 170-11; BIR Ruling No. 169-11; BIR Ruling No. 159-11
St. John the Apostle Academy, Inc.
Villaflores St., Gumamela, Labo,
Camarines Norte 4604
Attention: Sr. Florecita R. Neri, AMP
Principal
Gentlemen :
This refers to your letter dated October 9, 2012, requesting for a certificate of tax
exemption enjoyed by non-stock, non-profit educational institutions pursuant to
Section 30 (H) of the Tax Code of 1997, as amended. aHIEcS
It is represented that ST. JOHN THE APOSTLE ACADEMY, INC., with Taxpayer's
Identification No. 005-421-872-000, is a non-stock, non-profit educational institution
duly organized under the laws of the Philippines; that it is registered with the
Securities and Exchange Commission (SEC) under SEC Registration No. 20131 dated
January 30, 1962; that it is recognized by the government and permitted by the
Department of Education (DepEd) in accordance with Government Recognition Nos.
11, s. 1991; 001, s. 2002; and 02, s. 1988, to operate Kindergarten School,
Elementary, and Secondary courses, respectively; and that among the purposes for
which it was incorporated are the following:
1.
To teach Pre-school, Primary, Intermediate and Secondary Courses of
Instruction and in addition thereto, such religion subjects as may, from time to time,
be determined by the Board of Trustees;
2.
St. John the Apostle Academy takes as its guiding principles (a) the Papal
pronouncements on education which is to form true and perfect Christians, and (b)
the Constitution of the Philippines which aims to develop moral character, personal
discipline, civic consciousness and vocational efficiency, and to teach the duties of
citizenship. And to this effect to teach such necessary levels of education or
institutions of learning for sciences and other cultural courses. acITSD
In support of its request, ST. JOHN THE APOSTLE ACADEMY, INC. has submitted the
following required documents:
1.
2.
Certified true copy of the Certificate of Registration with the SEC;
3.
Certified true copy of the Amended Articles of Incorporation which includes
the following provisions:
a.
That the corporation is non-stock, non-profit;
b.
under Sec. 30 of the Tax Code of 1997, as amended;
c.
That no distribution of property of the corporation or of dividends among
incorporators and/or members of the corporation shall be made;
d.
The trustees shall likewise not receive any compensation; and
cASIED
e.
In the event of dissolution of the corporation, its remaining assets, after
payment of its liabilities, shall be conveyed and transferred to such non-stock and
non-profit corporations dedicated to religious, educational, scientific, or

philanthropic pursuits, or to the Republic of the Philippines.
4.
Certified true copy of the By-Laws;
5.
Certified true copies of the Annual Income Tax Returns and Financial
Statements for the last three (3) years of operation;
6.
Government (DepEd) Recognition Certificates;
7.
Certification of Non-Forum Shopping;
8.
BIR Certificate of Registration; and
9.
taxes and duties." SACEca
"Sec. 30.
xxx
(H)
xxx
xxx

directly and exclusively for educational purposes. (BIR Ruling No. 548-12 dated
August 31, 2012)
taxable income, except those covered by Section 27 (D) of the Tax Code. However,
if their gross income from unrelated trade, business or other activity exceeds fifty
percent (50%) of the total gross income derived from all sources then the entire
taxable income shall be subject to the regular corporate income tax rate prescribed
under Section 27 (A) of the Tax Code." (Section 27 [B] of the Tax Code of 1997, as
amended; Commissioner of Internal Revenue vs. St. Luke's Medical Center, Inc., G.R.
Nos. 195909 and 195960 dated 26 September 2012) CcAIDa
Code of 1997)
From the foregoing, and since ST. JOHN THE APOSTLE ACADEMY, INC. is a non-stock
and non-profit educational institution as contemplated under the said provisions, it
is exempt from the payment of taxes and duties on all its revenues and assets used
actually, directly and exclusively for educational purposes. (BIR Ruling No. 170-11
dated May 25, 2011)
However, ST. JOHN THE APOSTLE ACADEMY, INC. shall be subject to internal revenue
taxes on income from trade, business or other activity, the conduct of which is not
related to the exercise or performance by such educational institutions of their
educational purposes or functions. (Sec. 2, Finance Department Order No. 137-87,
as amended by Finance Department Order No. 92-88)
Likewise, ST. JOHN THE APOSTLE ACADEMY, INC.'s gross receipts from operations as
a non-stock, non-profit educational institution are exempt from value-added tax
(VAT) pursuant to Section 109 (1) (H) of the 1997 Tax Code, as amended.
receipts from such sale of goods and services do not exceed One Million Nine
Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00) which tax
payment may legitimately be passed on to buyers of such goods and services. (BIR
Ruling No. 059-13 dated February 11, 2013) ADSTCa
Hence, as long as ST. JOHN THE APOSTLE ACADEMY, INC. will not engage in the
regular conduct or pursuit of a commercial or economic activity including
transactions incidental thereto, it will remain exempt from VAT. (BIR Ruling No. 54812 dated August 31, 2012)
buyer/customer has to pay in order to obtain the goods or services.
Code of 1997 to avoid the passing on or shifting of the VAT. (BIR Ruling No. 169-11
dated May 25, 2011)
cDCaTH
(a)
(b)
(c)
owned and operated by ST. JOHN THE APOSTLE ACADEMY, INC. as ancillary activities
and the same are located within its premises.
In addition, gifts, donations, and other contributions received by ST. JOHN THE
APOSTLE ACADEMY, INC. as an educational institution, are exempt from the
payment of donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, as
amended, subject to the condition that not more than 30% of said gift shall be used
for administration purposes. SEHTAC
under Revenue Regulations No. 13-98 without the accreditation of ST. JOHN THE
APOSTLE ACADEMY, INC. as a donee institution with the Philippine Council for NGO
Certification (PCNC). Organizations seeking certification shall file with the PCNC
Secretariat a letter of intent to apply for certification and submit the necessary
documents. If the applicant NGO has met the minimum criteria for certification, the
Board gives a 3-year or 5-year certification to the organization and informs this
Office which then issues to said organization a certification of Donee Institution
Status.
ST. JOHN THE APOSTLE ACADEMY, INC. is advised to contact The Secretariat,
Philippine Council for NGO Certification (PCNC), tel. nos. 782-1568, 715-9594, 7152756 or telefax 715-2783.
an educational institution, ST. JOHN THE APOSTLE ACADEMY, INC. is constituted as
withholding agent for the government required to withhold the tax on compensation
income of its employees, or the withholding tax on income payments to persons
subject to tax pursuant to Section 57 of the Tax Code of 1997, as amended.
Moreover, ST. JOHN THE APOSTLE ACADEMY, INC. is also subject to the payment of
the annual registration fee of Php500.00 as prescribed in Section 236 (B) of the Tax
Code of 1997, as amended. It is also required under Section 6 (C) in relation to
Section 237 of the same Code to issue duly registered receipts or sales or
commercial invoices for each sale or transfer of merchandise or for services
rendered which are not directly related to the activities for which they are
registered. (RMC No. 76-2003) DaScAI
other pertinent records of ST. JOHN THE APOSTLE ACADEMY, INC. to determine
compliance with the conditions set forth in the certificate of tax exemption and tax
liabilities, if any. (BIR Ruling No. 159-11 dated May 19, 2011)
The tax exemption ruling may be renewed upon filing of a subsequent application
for Tax Exemption/Revalidation provided under Revenue Memorandum Order (RMO)
No. 20-2013, otherwise, the exemption shall be deemed revoked upon the
expiration of its validity period.
then this ruling shall be considered null and void. ESTCHa
Very truly yours,
12-02-2013 BIR Ruling No. 458-13

December 2, 2013
Our Lady of Miraculous Medal Homeowners Association, Inc.
Brgy. Macabog, Sorsogon City, Sorsogon
Attention: Jesus Hubilla
President
Gentlemen :
Corporation (SHFC) dated July 25, 2013, endorsing the sale transaction between
Milagros C. Flores, et al. and Our Lady of Miraculous Medal Homeowners
Association, Inc. for exemption from the payment of Capital Gains Tax and other
taxes in accordance with the Republic Act (RA) No. 7279, otherwise known as the
"Urban Development and Housing Act of 1992". HEDCAS
Documents submitted disclosed that Milagros C. Flores, Emmanuel Flores, Leonardo
Flores, Jr., Stellamar Flores, Teresita Flores-Velarde, Heidy B. Flores, Leonardo C.
Flores III and Ma. Rosario Flores-Naranjo (hereinafter referred to as landowners) are
the registered owners of a parcel of land, identified as Lot 1662-I, Psd-05-037641
covered by Transfer Certificate of Title (TCT) No. 083-2013000097 issued by the
Registry of Deeds for Sorsogon, Sorsogon. The aforesaid property is situated at Brgy.
Macabog, Sorsogon City with an area of Eighteen Thousand Three Hundred Thirty
Eight square meters (18,338 sq.m.), more or less. Our Lady of Miraculous Medal
Homeowners Association, Inc. (TIN 006-141-562-000), on the other hand, is a
homeowner's organization duly registered with the Housing and Land Use
Regulatory Board (HLURB). On May 29, 2013, the parties executed a Deed of
Absolute Sale whereby the landowners, thru their Attorney-in-Fact, Stellamar Flores,
transferred and conveyed Seventeen Thousand Nine Hundred Ten square meters
(17,910 sq.m.) portion of the subject property to Our Lady of Miraculous Medal
Homeowners Association, Inc. at an agreed price of Five Million Three Hundred
Seventy Three Thousand Pesos (P5,373,000.00). Pursuant to the certification dated
May 31, 2013 issued by SHFC, Seventeen Thousand Nine Hundred Ten square
meters (17,910 sq.m.) out of the total Eighteen Thousand Three Hundred Thirty
Eight square meters (18,338 sq.m.) covered by TCT No. 083-2013000097 actually
comprise a Community Mortgage Program (CMP) Project and shall be
proportionately distributed to the association's qualified member-beneficiaries. 1 For
this purpose, Our Lady of Miraculous Medal Homeowners Association, Inc. secured a
housing loan under the CMP, a financing assistance program of the SHFC a
subsidiary of the National Home Mortgage Finance Corporation (NHMFC). SCIcTD
In support of its request, Our Lady of Miraculous Medal Homeowners Association,
Inc. has completely submitted on September 20, 2013 the following documents:
1)
2)
3)
4)
Association;
5)
Association;
6)
the SHFC;
7)
8)
Association; CITDES
9)
Association; and
10)

"Sec. 20.
(d)
(2)
xxx
xxx
xxx.
Sec. 32.
the CMP shall be granted with the following privileges or incentives: THADEI
xxx
xxx
xxx
(b)
and"
landowner to Our Lady of Miraculous Medal Homeowners Association, Inc. of
Seventeen Thousand Nine Hundred Ten square meters (17,910 sq.m.), portion of the
properties covered by TCT No. 083-2013000097 is exempt from the capital gains
tax. Upon issuance of this letter of exemption, and upon registration of the
document of sale, a lien on the Certificate of Title of the land to be issued in the
name of the Homeowners Association shall be caused to be annotated by the
Register of Deeds having jurisdiction over the property, to the effect that the said
properties shall be used for socialized housing pursuant to RA No. 7279. (BIR Ruling
No. 109-13 dated March 21, 2013)
exemption clause in Sec. 20 of RA 7279. Accordingly, the landowner is liable to pay
the documentary stamp tax on the document conveying the afore-stated property
imposed under Section 196 of the Tax Code of 1997, based on the consideration
contracted to be paid for such realty or its fair market value determined in
accordance with Section 6 (E) of the said Code, whichever is higher. (BIR Ruling No.
109-13 dated March 21, 2013) cdll
No. 109-13 dated March 21, 2013)
1997.
then this ruling shall be considered as null and void.
Very truly yours,
ANNEX
Our Lady of Miraculous Medal Homeowners Association, Inc.
Brgy. Macabog, Sorsogon City, Sorsogon
Blk.
Lot
Total Area
Name of Beneficiary
No.
No.
(sq.m.)
Jasareno, William D.
145.32
142.47
Jasareno, Arjay J.
Jasareno, Rowan D. 1
142.47
Jasareno, Ronel D. 1
142.47
Jasareno, Jose Jr. D. 1
142.47
Jasareno, Fred D.
142.47
Jasareno, Nilo D.
142.47
Sicad, Eduardo, Jr. J.
142.47
Jasareno, Nanette G.
85.48
10
Jasareno, Emmanuel D.
10
85.48
11
Jetajobe, Joel J.
11
113.98
12
Dellosa, Salvacion C.
12
13
Lanuza, Pablito S. 1
13
85.48
14
Datur, Danilo Sr. J. 1
14
85.48
15
Deniega, Rowell H. 1
15
85.48
16
Calayo, Maria Gracia D.
16
113.98
85.48
17
Deniega, Honorio J. 1
17
113.98
18
Nuez, Eugenio S.
18
113.98
19
Abejuro, Joseph II C.
19
142.47
20
Melendrez, Michelle R.
20
142.47
21
Jalmasco, Julieta F. 1
21
113.98
22
Jalmasco, Jenifer F. 1
22
113.98
23
Jetajobe, Adolfo Jr. J.
23
24
Cantela, Anelyn J. 1
24
85.48
25
Gonzales, Rexon J. 1
25
96.88
26
Deniega, Edgar J.
112.55
27
Deniega, Elma J.
116.83
28
Deniega, Mercy J.
118.25
29
Lacay, Anthony J.
118.25
30
Delima, Fedelino J. 2
142.47
31
Llobo, Jose D.
142.47
32
Escurido, Gemelita D.
113.98
33
Quiones, Maricel L.
113.98
34
Desacula, Emilio C. 2
113.98
35
Deniega, Jocelyn D.2
10
113.98
36
Alebarbar, Marites DP.
11
85.48
37
Deniega, Wilfredo D.
12
85.48
38
Dela Paz, Rosw B. 2
13
142.47
39
Raymundo, Ruben A.
14
40
Jasareno, Renne D. 3
185.21
41
Labalan, Ranilo V. 3
142.47
42
Llamas, Flora J.
149.59
173.81
142.47
43
Brinola, Larry C.
98.30
44
Allego, Elizabeth G.3
98.30
45
Allego, Gerwin G.
113.98
46
Deniega, Eduardo J.
85.48
47
Deniega, Jose Pepito J.
85.48
48
Jetajobe, Melvin C. 4
85.48
49
Jebulan, Wilfredo
85.48
50
Ramos, Jayson O.
85.48
51
Claveria, Alicia J.
85.48
52
Lacay, Albert J.
85.48
53
Lajada, Anjelo J.
85.48
54
Sicad, Emmalyn J. 4
115.40
55
Dungaran, Ronaldo L.
10
56
Lanuza, Arnel E.
113.98
57
Deniega, Christian H.
58
Dellosa, Nelia L.
85.48
59
Brinola, Leticia
85.48
60
Leoncito, Mylene R.5
85.48
61
Deniega, Ryan H.
85.48
62
Dado-acon, Nemesio Jr. T. 5
85.48
63
Barrios, Alejandre Jr., A.
85.48
64
Asiatico, James DL. 5
111.13
65
Erepol, Christopher J.
10
66
Labayo, Jerome E. 6
111.13
67
Talagsad, Aimee D. 6
108.28
68
Ante, Armand Victor D.
113.98
116.83
116.83
113.98
69
Janaban, Susana A. 6
113.98
70
Dungaran, Eduardo L.
71
Garcia, Joseph D.
92.61
72
Lanuza, Rolando S. 6
96.88
73
Escurido, Lorena D. 6
96.88
74
Janapin, Roger Jr., H.
75
Discaya, Jose J.
10
108.28
76
Dungaran, Gina J.
128.22
77
Garcia, Josephine J. 7
123.95
78
Garcia, Ariel D.
113.98
79
Laguidao, Sammy T.
80
Garcia, Domingo D.7
113.98
81
Janaban, Alvin J.
113.98
82
Guardian, Jose Rosendo D.
83
Hubilla, Roy M.
85.48
84
Dungaran, Marilyn D.
85
Garcia, Carlo J.
10
129.65
86
Dave, Hazel Joy R. 8
122.52
87
Delima, Salvacion C.
88
Paje, Francis J.
149.59
89
Gallofin, Leonisa C. 8
151.02
90
Laguidao, Gina L.
149.59
91
Oliver, Merlinda J. 8
151.02
92
Janaban, Thelma L. 8
148.17
93
Hubilla, Jesus D.
149.59
94
Caig, Jess Wilzon J. 9
112.55
92.61
88.33
113.98
86.91
128.22
119.68
95
Jetajobe, Imelda
108.29
96
Caig, Zenaida J.
142.47
97
Lacao, Efren J.
142.47
98
Jayona, Reynaldo D.
99
Bio, Marvin J.9
116.83
100
Jetajobe, Amadeo J.9
116.83
101
Doyog, Daniel S.
116.83
102
Carillo, Telesporo, Jr., A.
116.83
103
Jasareno, Roberto D.
10
116.83
104
Carillo, Telesporo, II L.
11
116.83
105
Barbin, Valerie V.
12
116.83
106
Salundaguit, Michael F.
13
116.83
107
Vargas, John Joseph C.
14
116.83
108
Calayo, Fernando D.
15
116.83
109
Jaramiel, Augusto L.
16
116.83
110
Jetajobe, Ariel B.
17
116.83
111
Jebulan, Richard D. 9
18
116.83
112
Garcia, Carlito J.
19
142.47
113
Aninipot, Gina J.
20
142.47
114
Marbella, Roger D. 10
113.98
115
Benemerito, Glenerico L. 10
116
Brinola, Victor C.
113.98
117
Discaya, Edelberto J.
10
113.98
118
Sarmiento, Ma. Bella D.
10
113.98
119
Doyog, Asuncion S. 10
113.98
120
Deniega, Vergelio D.
10
10
116.83
113.98
113.98
121
Balisbis, Gemma J. 10
113.98
122
Araojo, Leonila J.
10
113.98
123
Bio, Michael J.
10
10
113.98
124
Bio, Adelaida J.
10
11
113.98
125
Laguidao, Rodolfo Jr., S.
10
12
113.98
126
Dioneda, Ma. Edena B.
10
13
113.98
127
Ocampo, Clemente L.
10
14
133.92
128
Fulleros, Jan Mikhael G.
11
119.68
129
Fulleros, Ozan J.
142.47
130
Fulleros, Osee Lolito J.
11
131
Discaya, Maribel
11
145.32
132
Jetajobe, Elmer I.
11
145.32
133
Lacao, Ricky D.
11
145.32
134
Lacao, Dolores D.
11
109.70
135
Lacao, Roselyn D. 11
119.68
136
Lacao, Sonny D.
11
109.70
137
Asis, Regina L.
11
10
113.98
138
Jebulan, Manolo D. 11
11
113.98
139
Dioneda, Florenda D.
11
12
140
Jardin, Raul D.
11
13
125.37
141
Jetajobe, Allan B.
11
15
179.51
142
Grafil, Elisa P.
11
16
136.77
143
Ubales, Zea Cirhea A.
11
17
144
Garcia, Liza J.
11
18
142.47
145
Duran, Ma. Theresa11
19
142.47
146
Duran, Ma. Nirvana 11
20
146.74
11
142.47
125.37
142.47
147
Jamisal, Jeshon D. 11
21
143.90
148
Jetajobe, Alberto J. 11
22
216.56
149
Orejo, Rosa J.
11
23
182.36
150
Garcia, Raul J.
11
24
158.14
Footnotes
1.
12-02-2013 BIR Ruling No. 457-13

December 2, 2013
E.O. 226; RR 16-2011;
Secs. 57 (B); 106 (A) (1) (a); 196 NIRC;
Household Development Corporation
3rd Level Starmall Las Pias, C.V. Starr Avenue
Philamlife Village, Pamplona, Las Pias City
Attention: Atty. Cecilia A. Ramilo
Tax Department Head
Gentlemen :
This refers to your letter dated January 28, 2013 stating that Household
Development Corporation (Household Development for brevity) with Tax
Identification No. 001-221-703-000 is a domestic corporation duly registered with
the Securities and Exchange Commission (SEC) under Company Reg. No. 75257. It
is registered with the Board of Investments (BOI) as an Expanding Developer of LowCost Mass Housing Project-Vertical (Camella Condo Homes-Pasig) on a Non-Pioneer
status under the Omnibus Investments Code of 1987 or Executive Order (EO) No.
226. Household Development has been granted Income Tax Holiday (ITH) by the BOI
under Certificate of Registration No. 2013-024 dated January 28, 2013 for a period
of three (3) years from January 2013 or actual start of commercial
operations/selling, whichever is earlier but in no case earlier than the date of
registration. Household Development's Camella Condo Homes-Pasig Project is
registered with Housing and Land Use Regulatory Board (HLURB) under Certificate
of Registration No. 24429 and holds HLURB License to Sell No. 26184; and under the
Specific Terms and Conditions of its BOI Registration, the ITH of Household
Development shall cover only one hundred eighty five (135) * units of low-cost mass
housing for Camella Condo Homes-Pasig Project based on the following schedule:
HTAIcD
Year
Volume (No. of Units)
35
59
41
Total 135
===
On the basis of the foregoing, you now request for an opinion on the tax
consequences of the said ITH granted by BOI. Specifically, if Household
Development, being a BOI-registered enterprise is exempt from the payment of the
creditable withholding tax (CWT) imposed under Revenue Regulations No. 2-98 on
income payments received during the aforementioned period with respect to its
registered activity.
In reply, please be informed that under Section 2.57.5 (B) (2) of Revenue
Regulations (RR) No. 2-98, as amended by RR No. 6-2001 implementing Section 57
(B) of the Tax Code of 1997, as amended, the withholding tax prescribed in the said
Regulations shall not apply to income payments to persons enjoying exemption
from the income tax provided by Republic Act No. 7916 and the Omnibus
Investments Code of 1987.
Accordingly, since Household Development's Camella Condo Homes-Pasig Project is
a BOI registered project, this Office is of the opinion as it hereby holds, that income
payments received by Household Development in connection with its housing
project, Camella Condo Homes-Pasig (on the 135 low-cost mass housing units as
mentioned in the Specific Terms and Conditions of its BOI Registration), is exempt
from CWT under RR No. 2-98, as amended by RR No. 6-2001, for a period of 3 years
from January 2013 or actual start of commercial operations/selling, whichever is
earlier but in no case earlier than the date of registration. 1 It must be emphasized,
however, that the above exemption from CWT covers only income directly
attributable to revenues generated from its registered activity, Household
Development's Camella Condo Homes-Pasig Project involving the 135 low-cost mass
housing units as mentioned in the Specific Terms and Conditions of its BOI
Registration. Furthermore, such exemption shall not cover revenues from units with
selling price exceeding Three Million Pesos (P3,000,000.00). In the computation of
ITH, interest income from in-house financing shall not be considered as revenues
generated from the registered activity. ADaEIH
Moreover, the entitlement to ITH of Household Development's Camella Condo
Homes-Pasig Project is not automatic as it still has to comply with the following
provisions of the Specific Terms and Conditions of its BOI Registration, viz.:
1.
In the grant of incentives, the extent of the project's ITH entitlement shall be
based in the project's ability to contribute to the economy's development based on
the following parameters in this order of importance: (1) project's net value added,
(2) job generation, (3) multiplier effect, and (4) measured capacity. In the event that
the registered enterprise fails to implement the project as represented in its project
application, the Board may reduce the project's ITH entitlement proportionate to the
actual performance of the enterprise. The project's entitlement to incentives shall
be based on the following: ATcEDS
a.
Net Value Added (NVA) should be at least 25%

Year 1 Year 2 Year 3
NVA
96%
95%
93%
b.
Job Generation
Year 1 Year 2 Year 3
Total Employees
c.
51
90
61
Investments and Timetable

Activity
Land acquisition
AaSCTD
Schedule
Related
Cost
Expense/s
(In Php'000)
January
Land cost
January
Pre-operating
8,667
2010
Secure necessary
license/permit/registration
from the
February
2012 to
1,000
expenses
government/training costs
Site preparation and
development
2013
December
2012 to
Land/site
15,035
development
September 2015
House construction December
2012 to
House 102,790
construction
November 2016
Capital Equipment
Acquisition
Capital
Equipment
Start of commercial
operation
4,550
January
Working
5,0000 *
2013 capital
Total Project Cost
137,042
=======
d.
Sales Revenues
Year
Volume
DTEcSa
Value
(No. of Units)
1
35
60,598
59
102,160
41
70,992
Total 135
(Php'000)
233,750
====
=======
Net income that exceeds 10% of the revenue represented at the time of
application shall not be eligible to ITH unless, the Board is informed in writing by the
proponent in advance before the revenue is expected to exceed the projections in
the application for registration submitted to the Board. acHDTE
2.
The enterprise shall submit a list of common cost items and cost allocation
methodology for its other projects/activities (whether BOI-registered or nonregistered).
3.
Secure from the HLURB an endorsement that it has faithfully complied with
the approved development plan and a "Certificate of Good Housekeeping".
4.
File an application with the BOI Incentives Department within one (1) month
from filing of the final Income Tax Return (ITR) with the Bureau of Internal Revenue
(BIR) in order to validate the claim for income tax exemption. The application shall
be accompanied by a certification from the Social Security System (SSS) that the
enterprise is in good standing in the remittance of SSS contributions of its
employees. DAEICc
5.
Secure a Certificate of ITH Entitlement (CoE) from the BOI Supervision and
Monitoring Department prior to filing of ITR with the BIR; otherwise, ITH for that
particular year without CoE shall be forfeited.
6.
In the event the enterprise fails to maintain the 75:25 debt-equity ratio
requirement, it shall show proof that the construction of housing units have been
completed and delivered to buyers prior to availment of ITH; otherwise, the
enterprise shall not be entitled to ITH and shall be required to refund any capital
equipment incentives availed of. cAaTED
7.
Submit proof of compliance that at least twenty percent of the total
subdivision area has been developed and allocated for socialized housing within one
year from date of registration or prior to availment of ITH; otherwise, ITH for that
particular year shall be deemed forfeited.
Furthermore, BOI-registered enterprises enjoy no tax exemption/privileges other
than those granted under E.O. 226. In this regard, under the terms and conditions of
its BOI registration, Household Development's Camella Condo Homes-Pasig Project
was clearly granted a 3-year ITH but such terms and conditions do not provide for
any exemption from other taxes that Household Development may be subject to on
its business transactions. Thus, Household Development's Camella Condo HomesPasig Project will remain subject to Value-Added Tax (VAT) and Documentary Stamp
Tax (DST) on its sales of house and lot units pursuant to Sections 106 (A) (1) (a) and
196 of the Tax Code of 1997, as amended. (BIR Ruling No. 334-11 dated September
7, 2011) ISCaDH
In relation thereto, Section 109 (1) (P) of the Tax Code of 1997 provides, that the
sale of residential lot valued at One Million Nine Hundred Nineteen Thousand Five
Hundred Pesos (P1,919,500.00) and below, or house and lot and other residential
dwellings valued at Three Million One Hundred Ninety Nine Thousand Two Hundred
Pesos (P3,199,200.00) and below is VAT-exempt. 2 Thus, only the sales by
Household Development's Camella Condo Homes-Pasig Project of housing units with
selling price of not more than the aforementioned price ceilings shall be exempt
from VAT.
It should be understood that Household Development's Camella Condo Homes-Pasig
Project shall be constituted as a withholding agent for the government if it acts as
employer and any of its employees received compensation income subject to
compensation withholding tax, or if it makes payments to individuals or
corporations subject to the withholding taxes as source as required under Chapter
XIII and Section 57 of the Tax Code of 1997, as amended and implemented by
Revenue Regulations No. 2-98, as amended. EHaASD
Likewise, Household Development's Camella Condo Homes-Pasig Project is required
to file on or before the 15th day of the fourth month following the close of its
accounting period of a Profit and Loss Statement and Balance Sheet with the Annual
Information Return under oath, stating its gross income and expenses incurred
during the taxable year.
Finally, Household Development's Camella Condo Homes-Pasig Project's books of
accounts and other pertinent records shall be subject to periodic examination by
revenue enforcement officers of this Bureau for the purpose of ascertaining whether
it has been complying with the conditions under which it has been granted tax
exemption or tax incentives and its tax liability, if any, pursuant to Section 235 of
the Tax Code of 1997, as amended.
However, if upon investigation it will be disclosed that the facts are different, then
this ruling shall be considered null and void. ESTAIH
Very truly yours,
Footnotes
1.
Movement of ITH period is subject to Art. 7 of E.O. 226 per BOI Specific Terms
and Conditions No. 1.
2.
The increase in the threshold amount for the sale or lease of goods or
properties or the performance of services covered by Section 109 (P), (Q) and (V) of
the 1997 Tax Code took effect on January 1, 2012, pursuant to Revenue Regulations
No. 16-2011 dated October 27, 2011.

BIR Ruling on Donor's Tax Exemption for Religious Organization

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BIR Ruling on Donor's Tax Exemption for Religious Organization

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12-18-2013 BIR Ruling No.

Volume (No. of Units)

Likewise, Communities Batangas' Citrus Grove Expansion, Barangay Cumba, Lipa

Copyright 2013 CD Technologies Asia

12-16-2013 BIR Ruling No. 470-13

BIR Ruling No. 298-12

SPA of Corporate Secretary;

Next Generation Minutes/Board Resolution on the donation;

Original Deed of Donation;

Certified true copy (CCV) of TCT No. 508905;

Verification and Certification against Forum Shopping;

Copies of the BIR Certificate of Registration of the parties.

In reply, please be informed that gifts in favor of educational and/or charitable,

Copyright 2013 CD Technologies Asia

12-12-2013 BIR Ruling No. 468-13

Letter application for tax exemption;

Certified true copy of the Certificate of Registration with the SEC;

That the corporation is non-stock, non-profit;

Certified true copy of the By-Laws;

Government (DepEd) Recognitions Certificates;

Certification of Non-Forum Shopping;

BIR Certificate of Registration; and

Other pertinent documents.

A non-stock and non-profit educational institution; . . . ."

A non-stock, non-profit educational institution is exempt from tax on all revenues

or services. Once shifted to the buyer/customer as an addition to the cost of goods

Certification of actual utilization of the said income; and

Very truly yours,

Copyright 2013 CD Technologies Asia

12-12-2013 BIR Ruling No. 467-13

recognized by the government and permitted by the Department of Education to

Complete Secondary Course (BEC)

Letter application for tax exemption;

Certified True copy of the Certificate of Registration with the SEC;

Certified true copy of the Amended Articles of Incorporation;

Certified true copy of the By-laws;

Copy of DEPED Recognition;

BIR Certificate of Registration.

A non-stock and non-profit educational institution; . . . ."

A non-stock, non-profit educational institution is exempt from tax on all revenues

or services. Once shifted to the buyer/customer as an addition to the cost of goods

Certification of actual utilization of the said income; and

Commissioner of Internal Revenue

P1,919,500.00 starting January 1, 2012.

Copyright 2013 CD Technologies Asia

12-06-2013 BIR Ruling No. 466-13

Letter of application for tax exemption;

That the corporation is a non-stock, non-profit association;

Certification against forum shopping; and

BIR Certificate of Registration.

In reply, please be as follows:

Section 30 (G) of the 1997 Tax Code, as amended, provides viz.:

rehabilitation of veterans; and

Copyright 2013 CD Technologies Asia

12-06-2013 BIR Ruling No. 465-13

Letter application for tax exemption;

Other pertinent documents.

In reply, please be informed that pursuant to Sections 20 and 32 of RA No. 7279,

Exemption from the payment of the following:

Capital gains tax on raw lands used for the project;

Lapera, Julie Ann P. 2

Jacosalem, Jamie Jr. C.