BIR Ruling [DA-682-99]

December 10, 1999 BIR RULING [DA-682-99] Capitol Subdivision, Inc . 16th Lacson Street Bacolod City Attention: Mr . Donato O . Poblador General Manager Gentlemen : This refers to your letter dated October 7, 1999 requesting for a reconsideration of BIR Ruling No. RR-12-24-99 dated August 24, 1999 issued by BIR Revenue Region No. 12, Bacolod City denying your request for exemption from creditable withholding tax on the increased of your selling price from P150,000.00 to P180,000.00 of your socialized housing project in La Carlota City referred to as Villa Caridad Subdivision on the ground that the ceiling price of P180,000.00 which is the limit set for granting the tax exemption is applicable only in Metro Manila and other highly urbanized areas; and that La Carlota City is not considered as a highly urbanized area, hence your application is not covered by the exemption. In reply, please be informed that the sale of socialized housing units (house and lot or lot only) by developer of socialized housing project registered with and certified by the Housing and Land Use Regulatory Board (HLURB) pursuant to R.A. No. 7279 shall be exempt from creditable withholding tax prescribed under Revenue Regulations No. 2-98. It shall be understood that to be tax-exempt, the selling price per lot or house and lot shall not exceed P180,000.00 in Metro Manila and other highly urbanized areas and P150,000.00 in other areas or such adjusted amount of selling price for socialized housing as may be later be determined and adopted by the HLURB, as provided under R . A . No . 7279 and its implementing regulations . In the instant case, the Housing and Urban Development Coordinating Council (HUDCC) HLURB Regional Office in Iloilo City has issued a certification dated October 5, 1999 amending License to Sell No. LS-06-97-23 issued to Capitol Subdivision, Inc. increasing the maximum selling price of socialized housing units with lot area of 80 square meters and above and floor area of 30 square meters to P180,000.00 per house and lot package for the following lots, all of Pcs-06-002797, thus: Block No. Lot Nos. 4 1-32; 6 1-32; 14 1,35-30; 16 1-32; 18 1-32; 20 1-32; and 23 1-32; Suffice it to say that while La Carlota City may not be classified as a highly urbanized area, but the increase of the selling price of the aforementioned lots from P150,000.00 to P180,000.00 is warranted in view of R.R. No. 2-98 which provides that the HLURB may determine and adopt the adjusted amount of selling price for socialized housing as provided under R.A. No. 7279 and its implementing regulations, such as in the instant case. Accordingly, your request for exemption from creditable withholding tax on the increased of your selling price from P150,000.00 to P180,000.00 of your socialized housing project in La Carlota referred to as Villa Caridad Subdivision is hereby granted. It shall be understood that the exemption covers only the aforementioned lots. 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. This amends BIR Ruling No. RR-12-24-99 dated August 24, 1999 issued by BIR Revenue Region No. 12, Bacolod City. Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)