Beneficiaries of NHA's Sites Improvement and Socialized Housing Projects Exempt from Payment of Documentary Stamp Tax

October 23, 1997 BIR RULING NO. 112-97 196 000 00 112-97 National Housing Authority Quezon Memorial Elliptical Road Diliman, Quezon City Attention: Mr . Marciano M . Pineda General Manager Gentlemen : This refers to your letter dated April 1, 1997 stating that in a letter dated February 28, 1997 of Ms. Marina Legaspi-Abal, BIR Regional Director for Central Visayas on the exemption of NHA beneficiaries from the payment of documentary stamp tax, she quoted Section 2 of Revenue Regulations No. 9-94 implying that NHA beneficiaries are liable to pay the documentary stamp tax; and that on the other hand, you are of the opinion that said Revenue Regulations is still subject to the exemption provided under Section 25, Art. VI of R.A. No. 7279 insofar as payment of documentary stamp tax is concerned. Based on the foregoing representations and documents submitted, you are now requesting, in effect, for a ruling that beneficiaries of NHA's sites improvement and socialized housing projects are exempt from the payment of documentary stamp tax. In reply, please be informed that Section 25, Art. VI of the R.A. No. 7279 provides, viz: " SITES AND SLUM IMPROVEMENT AND RESETTLEMENT PROGRAM SITES "Section 25. Benefits . In addition to the benefits provided under existing laws and other related issuances to occupants of areas for priority development, zonal improvement program, sites and slum improvement and resettlement program sites, such occupants shall be entitled to priority in all government projects initiated pursuant to this Act. They shall also be entitled to the following support services." xxx xxx xxx "(c) Exemption from the payment of documentary stamp tax, registration fees and other fees for the issuance of Transfer Certificate of Titles." From the above quoted provision of Section 25 (c), Art. VI of R.A. No. 7279, it is clear that occupants of areas for priority development, zonal improvement program, sites and slum improvement and resettlement program sites, as in the case of beneficiaries of NHA's site improvement and socialized housing projects are exempt from the payment of the documentary stamp tax imposed under the Tax Code, as amended. Accordingly, beneficiaries of NHA's site improvement and socialized housing projects are exempt from the payment of the documentary stamp tax imposed under Section 196 of the Tax Code, as amended. aisadc Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue