Villafuerte-Suarez Village Homeowners Association, Inc.-Phase III

April 5, 2016 BIR RULING NO. 102-16 RA No. 7279; BIR Ruling No. 053-15 Villafuerte-Suarez Village Homeowners Association, Inc.-Phase III Brgy. Ibabang Iyam, Lucena City Attention: Rodante B. Morales President Gentlemen : This refers to the letter of Ma. Ana R. Oliveros, President of the Social Housing Finance Corporation (SHFC) dated October 9, 2015, endorsing the sale transaction between Natividad Villafuerte and Villafuerte-Suarez Village Homeowners Association, Inc.-Phase III 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". Documents submitted disclose that Natividad Villafuerte (married to Romualdo Suarez) (TIN 928-360-941-000) (hereinafter referred to as Landowner) is the registered owner of a parcel of land, identified as Lot 1963-B-4 of the subdivision plan, Psd-04-158302, being a portion of Lot 1963-B, Psd-53465, L.R.C. Record No. 215 covered by Transfer Certificate of Title (TCT) No. T-111372 issued by the Registry of Deeds for the Lucena City. The aforesaid property is situated at Brgy. Ibabang Iyam, Lucena City with an area of Twenty One Thousand One Hundred Twenty Five square meters (21,125 sq.m.), more or less. Villafuerte-Suarez Village Homeowners Association, Inc.-Phase III (TIN 448-269-093-000), on the other hand, is a homeowner's organization duly registered with the Housing and Land Use Regulatory Board (HLURB). On July 9, 2015, the parties executed a Deed of Absolute Sale whereby the Landowner transferred and conveyed Eighteen Thousand Nine Hundred Forty Nine square meters (18,949 sq.m.) portion of the subject property to Villafuerte-Suarez Village Homeowners Association, Inc.-Phase III at an agreed price of Sixteen Million Five Hundred Ninety Thousand Six Hundred Seven Pesos and 46/100 (P16,590,607.46). Pursuant to the certification issued by SHFC, 18,949 sq.m. out of 21,125 sq.m. covered by TCT No. T-111372 actually comprises a Community Mortgage Program (CMP) Project and shall be proportionately distributed to the association's qualified member-beneficiaries. 1 For this purpose, Villafuerte-Suarez Village Homeowners Association, Inc.-Phase III secured a housing loan under the CMP, a financing assistance program of the SHFC a subsidiary of the National Home Mortgage Finance Corporation (NHMFC). Documentary Stamp Tax (DST) due on the sale has been paid. In support of its request, Villafuerte-Suarez Village Homeowners Association, Inc.-Phase III has completely submitted on October 16, 2015 the following documents: 1) SHFC letter application for tax exemption; 2) Certification of the President of the SHFC, 18,949 sq.m. portion of the subject property qualifies and is actually a CMP project; 3) SHFC Letter of Guaranty No. 1103; 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) Other pertinent documents. In reply, please be informed that pursuant to Section 32 of RA No. 7279, pertinent portions of which state that: "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 landowners who sold their properties for use in a socialized housing project are exempt from the payment of capital gains tax. Such being the case, the sale by Natividad Villafuerte to Villafuerte-Suarez Village Homeowners Association, Inc.-Phase III of the 18,949 sq.m. out of 21,125 sq.m. covered by TCT No. T-111372 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 Homeowner's 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. 053-15 dated February 27, 2015) DETACa However, the documentary stamp tax is not one of the taxes covered by the tax exemption clause in Sec. 32 of RA 7279. Accordingly, the landowners are 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. 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. 053-15 dated February 27, 2015) 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 sellers are entitled to exemption from capital gains tax or income tax imposed under the Tax Code of 1997. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered as null and void. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ANNEX Villafuerte-Suarez Village Homeowners Association, Inc.-Phase III Brgy. Ibabang Iyam, Lucena City Name of Beneficiary Blk. Lot Total No. No. Area (sq.m.) 1 Villaruel, Jovelyn Jarabe 1 1 39.28 2 Bocala, Jayson Yuzon 1 2 62.31 3 Albuero, Ceniza Ubay 1 3 62.31 4 Latayan, Joychi Ivy Ebarvia 1 4 62.31 5 Rodelas, Rosalie Rey 1 5 62.31 6 Quitoriano, Dennis Grimaldo 1 6 62.31 7 Racelis, Marivel Pelaez 1 7 62.31 8 Cuadrante, Noralyn Blas 1 8 62.31 9 Binaday, Roger Bonito 1 9 62.31 10 Bonaobra, Emelisa Binaday 1 10 62.31 11 Moreno, Ireneo Briones 1 11 62.31 12 Ceribo, Arnold Calibjo 1 12 62.31 13 Navales, Rolando Daiz 1 13 65.02 14 Manipol, Randy Martinez 2 1 85.34 15 Legaspi, June Lagsa 2 2 89.40 16 Villanueva, Myrin Calucin 2 3 60.96 17 De Los Reyes, Emil Arevalo 2 4 60.96 18 Villanueva, Margot Calucin 2 5 60.96 19 Reyes, Cynthia Ondra 2 6 60.96 20 Poveda, Gilbert Canu 2 7 60.96 21 Alegre, Betty Coronado 2 8 60.96 22 Saguid, Kimberly Joyce Ramos 2 9 60.96 23 Jumawan, Cherry Marie Garcia 2 10 60.96 24 Niala, Anelyn Liwanag 2 11 60.96 25 Inojosa, Jessie Orpanel 2 12 60.96 26 Clemente, Efren Carlos 2 13 60.96 27 Calusin, Marivic Montalbo 2 14 60.96 28 Nanez, Everly Trinity Michelle Clemente 2 15 60.96 29 Inojosa, Je-An Orpanel 2 16 60.96 30 Villanueva, Maru Calucin 2 17 60.96 31 Inojosa, Dina Orpanel 2 18 60.96 32 Revadavia, Guiller Taunan 2 19 60.96 33 Lagajeno, Renato Obligado 2 20 60.96 34 Banaag, Jessica Fortunado 2 21 60.96 35 Casaldan, Reynaldo Mangahas 2 22 60.96 36 Sto. Domingo, Jocelyn Villaruel 2 23 75.86 37 Reyes, Gretchen Mae Lorizo 2 24 75.86 38 De Vega, Maxima Montalbo 3 2 60.96 39 Afunggol, Paolo Augustus Garcia 3 3 60.96 40 Estrera, Reynante Hernandez 3 4 60.96 41 Estrera, Eugene Hernandez 3 5 60.96 42 Mendoza, Oliver Idea 3 6 60.96 43 Mendoza, Analyn Idea 3 7 60.96 44 Isleta, Marnelo Austria 3 8 60.96 45 Leones, Rowena Delantar 3 9 60.96 46 Sto. Domingo, Jayson Simpron 3 10 60.96 47 Cabula, Ruel Rivellosa 3 11 60.96 48 Guya, Roger Palma 3 12 75.86 49 Jumawan, Jenelyn Antaran 3 13 75.86 50 Labitigan, Romeo Carpio 4 1 107.01 51 Saclag, Henry Repil 4 2 96.17 52 Rimpula, Carren Joyce Cruzado 4 3 60.96 53 Orijuela, Reynald Orillineda 4 4 60.96 54 Repollo, Reynaldo Alcureza 4 5 60.96 55 Magarino, Jose Almajar 4 6 60.96 56 Nadal, Girlie Cabola 4 7 60.96 57 Magarino, Renievie Lovely Gapasangra 4 8 60.96 58 Martinez, Roldan Dura 4 9 60.96 59 Pastrana, Violeta Ordillano 4 10 60.96 60 Martinez, Gener Dura 4 11 60.96 61 Jarasa, Abigail Abdala 4 12 60.96 62 Maurillo, Alberto Aserdano 4 13 60.96 63 Dural, Ramil Prieto 4 14 60.96 64 Dotado, Emily Custodio 4 15 60.96 65 Recto, Arnold Villaruel 4 16 60.96 66 Lampa, Jennyfer Joy Regala 4 17 75.86 67 Rodelas, Cenen Recto 4 18 75.86 68 Deinla, Christine Panti 5 1 90.76 69 Misiera, Nancy Berganio 5 2 81.27 70 Peaflorida, Myrna Manuba 5 3 60.96 71 Estrella, Christopher Basa 5 4 60.96 72 Robles, Jennifer Andal 5 5 60.96 73 Delen, Maria Cristina Gonzalgo 5 6 60.96 74 Daulat, Annalyn Lavaro 5 7 60.96 75 Caraig, Olivia Manongsong 5 8 60.96 76 Daulat, Augusto Lavaro 5 9 60.96 77 De Leon, Julius Velez 5 10 60.96 78 Dela Torre, Merly Diaz 5 11 60.96 79 De Leon, Joel Velez 5 12 60.96 80 Oliveros, Ernaldo, Jr. Pera 5 13 60.96 81 Anore, Carmencita Ferrer 5 14 60.96 82 Derla, Mercy Valdemoro 5 15 60.96 83 Goniabo, Archie Parcia 5 16 60.96 84 Asia, Daniel Menorca 5 17 65.02 85 Alegre, Rosalinda Orenday 5 18 65.02 86 Lampa, Myrna Santos 6 1 108.37 87 Lampa, Alma Luz Regala 6 2 100.24 88 Paz, Eduardo Ayanco 6 3 60.96 89 Andal, Lea Agaton 6 4 60.96 90 Mendoza, Allan Idea 6 5 60.96 91 Agaton, Maria Allaine Andal 6 6 60.96 92 Binondo, Maribeth Baron 6 7 60.96 93 Segui, Josary Licuto 6 8 60.96 94 Sotomayor, John Renesth Menor 6 9 60.96 95 Paz, Roderick Abelilla 6 10 60.96 96 Idea, Lourwena Sotomayor 6 11 60.96 97 Zoleta, Benilda Idea 6 12 60.96 98 Sacristia, Darwin Villegas 6 13 60.96 99 Velez, Rosanna Villegas 6 14 60.96 100 Idea, Aira Joy Sotomayor 6 15 82.63 101 Lim, Lermaflor Sotomayor 6 16 82.63 102 Epil, Alma Garcia 7 1 97.53 103 Dalida, Maricel Mercene 7 2 90.76 104 Pantoja, Mark Anthony Cruz 7 3 60.96 105 Calamigan, Leilanie Zoleta 7 4 60.96 106 Talisic, Angelina Clanor 7 5 60.96 107 Pollo, Shiena Loren 7 6 60.96 108 Talisic, Ivanna Joyce Clanor 7 7 60.96 109 Eleazar, Shiela Pollo 7 8 60.96 110 Quinitio, Marie Ann Linga 7 9 60.96 111 Villanueva, Elizabeth Leup 7 10 60.96 112 Quinitio, Marco Fadul 7 11 60.96 113 Espinosa, Marilou Mejino 7 12 60.96 114 Quinitio, Ma. Leonora Rojas 7 13 60.96 115 Mejino, Jeraldine Carreon 7 14 60.96 116 Arevalo, Cynthia Florante 7 15 73.15 117 Arevalo, Mitzi Florante 7 16 73.15 118 Palmes, Lourdes Borac 8 1 82.63 119 Peascosas, Rowel Medina 8 2 98.88 120 Eubanas, Ederlyn Dela Cruz 8 3 60.96 121 Hermosa, Rebecca Quiambao 8 4 60.96 122 Mendoza, Menchy Piedragoza 8 5 60.96 123 Hicayo, Heide Quiambao 8 6 60.96 124 Organo, Nolie Peaflorida 8 7 60.96 125 Zabala, Arnel Sanchez 8 8 60.96 126 Villanueva, Jenelyn Perilla 8 9 60.96 127 Relova, Maynard De Torres 8 10 60.96 128 Inojosa, Bella Ausa 8 11 60.96 129 Vargas, Baby Lon Suarez 8 12 60.96 130 Raza, Beverly Villazanta 8 13 60.96 131 Ricafrente, Jefferson Etorma 8 14 60.96 132 Lopamia, Yolanda Arevalo 8 15 75.86 133 Dapito, Ma. Theresa Mercado 8 16 75.86 134 Peria, Rommel Busa 9 1 62.31 135 Peria, Nenette Busa 9 2 78.56 136 Lucanias, Beberly Tepait 9 3 60.96 137 Madrigallos, Mark Amparo 9 4 60.96 138 Dasalla, Analyn Arizapa 9 5 60.96 139 Dasalla, Cristina Arcega 9 6 60.96 140 Paralejas, Edwin Rey 9 7 60.96 141 Getomo, Nena Dingding 9 8 60.96 142 Ricafrenta, Arnel Gonzales 9 9 60.96 143 Ricafrente, Annabel Gonzales 9 10 60.96 144 Romasanta, Jeancar Pizarra 9 11 60.96 145 De Sena, Fernando Regis 9 12 60.96 146 Castillo, Melvin Jara 9 13 60.96 147 Capayas, Leny Saron 9 14 60.96 148 Joya, Cristina Saricura 9 15 60.96 149 Quijano, Mayline Del Campo 9 16 60.96 150 Depusoy, Banito Rosales 9 17 75.86 151 Quijano, Eric John Daya 9 18 75.86 152 Sta. Ana, Cherylyn Soltura 10 1 82.63 153 Lupig, Leonisa Mascarenas 10 2 94.82 154 Sales, Dominico Calamaya 10 3 60.96 155 Morales, Rodante Balsomo 10 4 60.96 156 Cortez, Antonio Ole 10 5 60.96 157 De Belen, Eric Sadiwa 10 6 60.96 158 Bataanon, Elesio, Jr. Barrito 10 7 60.96 159 Paraiso, Fidel Morino 10 8 60.96 160 Valenzuela, Glenda Catapat 10 9 60.96 161 Valenzuela Angelito, Jr. Catapat 10 10 60.96 162 Samas, Lucille Ann Doydora 10 11 60.96 163 Ferrer, Allen Maxwell Portento 10 12 60.96 164 Rizarre, Marites Quemora 10 13 60.96 165 Basco, Henry Garcia 10 14 60.96 166 Domingo, Hilario Agustin 10 15 70.44 167 Cuento, Myrna Basco 10 16 71.79 168 Garcia, Arlene Cantona 11 1 66.37 169 Dela Cruz, Cristina Pragoso 11 2 107.01 170 De Leon, David Rei Fabian 11 3 60.96 171 Sotelo, Crishelle Nabatad 11 4 60.96 172 Morales, Reynante Balsomo 11 5 60.96 173 Felipe, Alberto Villaos 11 6 60.96 174 Labatete, Elenita Perilla 11 7 60.96 175 Castillo, Medelyn Jara 11 8 60.96 176 Alpay, Olga Quinito 11 9 60.96 177 Maas, Leni Castillo 11 10 60.96 178 Alpay, Roselle Quinitio 11 11 60.96 179 Macabuhay, Johnson Pardito 11 12 60.96 180 Macabuhay, Rosalina Pardito 11 13 60.96 181 Canezo, Recherose O. 11 14 70.44 182 Nase, Susie Canezo 11 15 71.79 183 Casing, Antonio Pagal 12 1 75.86 184 Macabenta, Jayson Milaya 12 2 58.25 185 Villalva, Shirley Eusebio 12 3 60.96 186 Maao, Susana Javier 12 4 60.96 187 Rizarre, Joel Quemora 12 5 60.96 188 Agbay, Vanessa Camille Arcega 12 6 60.96 189 Dasalla, Leticia Arizapa 12 7 60.96 190 Agbay, Criselda Arcega 12 8 60.96 191 Tapia, Mary Blessing Arcega 12 9 60.96 192 Arcega, Chito Buenzello 12 10 60.96 193 Tapia, Maricel Arcega 12 11 60.96 194 Tapia, Mark Christian Arcega 12 12 60.96 195 Tapia, Cecilia Arcega 12 13 73.15 196 Tapia, Michelle Arcega 12 14 71.79 197 Villaverde, Francisco, Jr. Laraquel 13 1 79.92 198 Tabua, Jayson Villaverde 13 2 82.63 199 Madriaga Reynaldo, Jr. Sillacay 13 3 60.96 200 Porcincula, Rene Balce 13 4 60.96 201 Gutierrez, Mildred Banadera 13 5 60.96 202 Mancenido, Armie Carl Sandoval 13 6 60.96 203 Rodriguez, Imelda Banadera 13 7 60.96 204 Herrera, Aris Agbaya 13 8 60.96 205 Palermo, Marivic Quintin 13 9 60.96 206 Guarte, Cherry Ann Portales 13 10 60.96 207 Valencia, Primo Moreno 13 11 60.96 208 Esplana, Nolie Quesada 13 12 60.96 209 Legaspi, Adrian Lagsa 13 13 60.96 210 Regio, Richard Obniala 13 14 60.96 211 Detal, Monchito Penaranda 13 15 92.11 212 Legaspi, Ronaldo Lagsa 13 16 90.76 213 Valencia, Leonora Gabito 14 1 71.79 214 Bonsol, Fernando Ballesteros 14 2 67.73 215 Dungan, Romeo, Jr. Rodil 14 3 60.96 216 Mejoy, Rommel Pantela 14 4 60.96 217 Baculi, Teresa Dungan 14 5 60.96 218 Cribe, Pio De Mesa 14 6 60.96 219 Canaria, Reynaldo Demas 14 7 60.96 220 Lomerio, Reymundo Parale 14 8 60.96 221 Atienza, Jose, Jr. Abendan 14 9 60.96 222 Escobar, Marlito Pabrea 14 10 60.96 223 Esplana, Kiaselyn Manova 14 11 60.96 224 Pula, Rosalina Llaneta 14 12 60.96 225 Mabulay, Runny Andaya 14 13 60.96 226 Dela Cruz, Jerome Llaneta 14 14 60.96 227 Fortuna, Florentino Redinia 14 15 60.96 228 Oreta, Ariel Baribe 14 16 60.96 229 Pollo, Shierwin Loren 14 17 60.96 230 Enriquez, Renea Bringuela 14 18 60.96 231 Valencia, Melody Gabito 14 19 55.54 232 Valencia, Roberto Gabito 14 20 60.96 233 De Asis, Raymundo, Jr. Alcala 15 1 93.46 234 Lagos, Candelaria De Asis 15 2 67.73 235 Morilla, Louie Curdoba 15 3 67.73 236 Ortiz, Michelle Manlugon 15 4 67.73 237 Meraa, Jonathan Orozco 15 5 67.73 238 Buere, Maricel Medallada 15 6 67.73 239 Saclag, Alberto Repil 15 7 67.73 240 Mancenido, Sonia Sandoval 15 8 67.73 241 Mancenido, Jefferson Sandoval 15 9 67.73 242 Taunan, Neliza Lleona 15 10 67.73 243 Taunan, Nolito Lleona 15 11 82.63 244 Cupino, Noe Musnit 16 1 65.02 245 Musnit, Madelyn Jarical 16 2 66.37 246 Musnit, Cesar Recto 16 3 66.37 247 Fortu, Liza Musnit 16 4 66.37 248 Navida, Anali Porcincula 16 5 66.37 249 Climacosa, Cristina Lazaro 16 6 66.37 250 Panganiban, Marichu Lotilla 16 7 66.37 251 Verain, Phercy Baldonado 16 8 66.37 252 Catapang, Adora Panganiban 16 9 88.05 253 Tumbaga, Lorena Palad 16 10 70.44 254 Ayaton, Rosalinda Cangas 16 11 67.73 255 Regenio, Rowena Argulla 16 12 67.73 256 Macabenta, Ana Marie Melaya 16 13 67.73 257 Bonsol, Felix Ballesteros 16 14 69.08 258 De Leon, Merily Indonilla 17 1 69.08 259 De Torres, Marlon Llagas 17 2 54.18 260 Relova, Marisa De Torres 17 3 55.54 261 Encanto, Ruby Karen Soltura 17 4 58.25 262 Madrigallos, Mar Joan Amparo 17 5 55.54 263 Madrigallos, Adelaida Amparo 17 6 55.54 264 De Ocampo, Jerwin Planas 17 7 48.76 265 De Ocampo, Arwin Planas 17 8 43.35 266 Santiago, Ruel Almote 17 9 55.54 267 Bunao, Clariza Clemente 17 10 55.54 268 Garcia, Simonette Malabanan 17 11 55.54 269 Amor, Randy Jumanan 17 12 55.54 270 Vargas, Bernardino Miranda 17 13 55.54 271 Gregorio, Solidad Calderon 17 14 55.54 272 Abrazaldo, Melegen Umali 17 15 55.54 273 Durias, Christopher Abrazaldo 17 16 54.18 274 Palomares, Ramon, Jr. Sy 17 17 59.60 275 Peascosas, Ricardo, Jr. Medina 17 18 62.31 276 Peascosas, Ramil Medina 17 19 55.54 277 Labitigan, Rochelle Yen Barbas 17 20 55.54 278 De Lima, Vincint Bungapat 17 21 56.89 279 De Lima, Myla Bungapat 17 22 59.60 280 Acabado, Philip Dungon 17 23 58.25 281 Targa, Judith Borromeo 17 24 59.60 282 Oblea, Priscilla Acabado 17 25 56.89 283 Agocoy, Jonel Tibes 17 26 56.89 284 Agocoy, Manuel Hebia 17 27 55.54 285 Cunanan, Lylle Revistual 17 28 55.54 286 Frias, Gloria Paraleja 17 29 54.18 287 Saclag, Nasiancino, Jr. Repil 17 30 52.83 288 Villasaya, Eden Pedrezuela 17 31 52.83 289 Eleazar, Gemma Aiza Perdiz 17 32 51.47 290 Frias, Nimfa Lorredo 17 33 62.31 291 Lopez, Marilou Cerdon 17 34 43.35 292 Maosa, Jose Edwin Noora 17 35 44.70 293 Fabunan, Jocelyn Gilbuena 17 36 44.70 294 De Los Reyes, Alicia Arevalo 17 37 48.76 295 Martecio, Eliezer Emasa 17 38 39.28 296 Villarosa, Emiliana Royola 17 39 56.89 Footnotes 1. See Annex for the masterlist of qualified beneficiaries.