Alabang Business Tower Condominium Corporation

November 29, 2007 BIR RULING [DA-605-07] Alabang Business Tower Condominium Corporation Block 1 Lot 6 Acacia Avenue, Madrigal Business Park Alabang, Muntinlupa City Attention: Mr. Felix Y. Hofilena President Gentlemen : This refers to your letter dated July 30, 2007 requesting for legal opinion on whether your condominium association is considered a non-stock, non-profit corporation considering that any profit that it may obtain as an incident to its operations shall, whenever necessary or proper, be used for the furtherance of the purpose or purposes for which it was organized. cECaHA As represented, Alabang Business Tower Condominium Corporation (ABTCC) is a non-stock corporation registered with the Securities and Exchange Commission (SEC) under SEC Registration No. ANO95-02602 issued on July 13, 1995. The primary purpose for which it was organized is to own or hold title to the common areas in the condominium property known and identified as the Alabang Business Tower which has been constructed pursuant to the provisions of Republic Act No. 4726, on the property described in and brought under the operation of said Act by that Master of Deed and Declarations of Restrictions. It has the following incidental purposes: To fix, levy, collect and enforce payment by any lawful means all charges or assessments as provided for in the Master Deed with Declaration of Restrictions; to pay all expenses in connection therewith and incidental to the performance of the functions of the corporation including but not limited to the payment of licenses, taxes, government assessments, fees, special assessments chargeable to the project, to common areas or the corporation; To borrow or raise money for any of the purposes of the corporation and to secure payment thereof and of the interest thereon, by way of mortgage, pledge or deed in trust, the whole or any part of the properties of the corporation, real, personal or a combination thereof, including contracts and other contractual rights whether at the time owned or hereafter acquired and to discharge any of the lien or encumbrance upon the entire project or any part hereof; To contract for services of persons or firms, to assist in the management and operation of the project, including administrative, legal, accounting, engineering and other professional and technical services, and to contract with any person, firm or association for the maintenance, utility, gardening and other services benefiting the common areas; and To exercise any and all powers, rights and privileges which are necessary, incidental or proper for the attainment of any of the purposes herein including the power to assess and collect penalties or impose sanctions for violations of the By-laws, the House rules and Regulations, and the Master Deed of Declaration of Restrictions of Ayala Alabang Business Tower. EcDSTI In reply, please be informed that the Association may be considered as a non-stock, non-profit corporation as can be gleaned from its purposes. Accordingly, the Association may amend its Articles of Incorporation from non-stock corporation to non-stock, non-profit corporation. 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. TcAECH Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service