Antel Global Corporate Center Condominium Association, Inc.

February 14, 2008 BIR RULING [DA-093-08] 105; DA-078-2001/10-29-01 Antel Global Corporate Center Condominium Association, Inc. 7th Floor, Administration Office #3 Doa Julia Vargas Avenue Ortigas Center, Pasig City Attention: Mr. Michael M. Santiago AGCC Property Manager Gentlemen : This refers to your letter dated May 17, 2005 requesting for the issuance of a non-VAT taxpayer/VAT-exempt taxpayer certificate. It is represented that Antel Global Corporate Center Condominium Association, Inc. (Corporation) is a non-stock and non-profit corporation registered with the Securities and Exchange Commission with SEC Registration No. A200009596 dated October 16, 2002; that the primary purpose for the creation of said corporation is to hold in ownership the common areas of the Condominium pursuant to the provisions of the Condominium Act (RA 4726), primarily to maintain and preserve the building in good and habitable condition; that in pursuing the purpose of the Corporation and to protect their collective interests, all unit owners or members share in the cost of preserving and maintaining the common areas of the building; that the other purpose of the Corporation is to fix and collect all charges or assessments as provided for in the Master Deed with Declaration of Restriction and to pay all expenses in connection with and incidental to the performance of the functions of the corporation; that the assessment of association dues is merely redistribution or sharing of common expenses and is not in pursuit of business or profit; and that there is no business involved as it does not engage in trade transaction with the consuming public. In reply, please be advised that under Section 105 of the National Internal Revenue Code of 1997, VAT is collected upon any person, who in the course of trade or business, sells, barters, exchanges, leases goods or properties and renders service. 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. CaAcSE Considering that the Corporation will not sell, barter, exchange, lease any goods or property and will not render service for a fee but merely implements the administration of the required services to collect the association dues from the unit owners pursuant to its corporate purpose/s as "trustee" of the fund thereof, it is not subject to VAT on such activity (VAT Ruling Nos. 26-97, 334-88, BIR Ruling Nos. DA-362-10-23-00, DA-008-01-05-00). This ruling, being issued on the basis of the foregoing facts as represented, will constitute as basis for the issuance of a new certificate of registration to Antel Global Corporate Center Condominium Corporation as non-VAT taxpayer by the Revenue District Officer of RDO No. 43- Pasig City. 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, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service