BIR Ruling No. 149-11

May 12, 2011 BIR RULING NO. 149-11 R.A. 7279; BIR Ruling No. [SH-(012) 127-09]; BIR Ruling No. [SH-(096) 634-09]; BIR Ruling No. [SH-(131) 771-09] Dreamland Homeowners Association, Inc. Uson Phase 5, Klinan 5, Mabuhay General Santos City Attention: Mr. Emeberto S. Cona President Gentlemen : This refers to your letter dated January 8, 2010, endorsed by Revenue Region No. 18, relative to the request for exemption from the payment of capital gains tax of Mr. Clemente R. Uson, Jr., landowner of parcels of land located in the Barrio of Lagao, General Santos City. The subject properties are being acquired by the Dreamland Homeowners Association, Inc. for its Socialized Housing Project to be subsequently transferred to its member-beneficiaries. aSDCIE Documents submitted disclosed that Mr. Clemente R. Uson, Jr. is the absolute registered owner of the following parcels of land described as follows: "Lot 747-A, Psd-11-029877, situated in Bo. of Klinan 5, Mabuhay, City of General Santos, containing an area of 10,000 square meters, more or less, covered by Transfer Certificate of Title No. T-109815" "Lot 747-B, Psd-11-029877, situated in Bo. of Klinan 5, Mabuhay, City of General Santos, containing an area of 10,000 square meters, more or less, covered by Transfer Certificate of Title No. T-109816" "Lot 747-C, Psd-11-029877, situated in Bo. of Klinan 5, Mabuhay, City of General Santos, containing an area of 10,000 square meters, more or less, covered by Transfer Certificate of Title No. T-109817" "Lot 747-D, Psd-11-029877, situated in Bo. of Klinan 5, Mabuhay, City of General Santos, containing an area of 10,000 square meters, more or less, covered by Transfer Certificate of Title No. T-109818" "Lot 747-E, Psd-11-029877, situated in Bo. of Klinan 5, Mabuhay, City of General Santos, containing an area of 10,000 square meters, more or less, covered by Transfer Certificate of Title No. T-109819" all of which comprise an aggregate area of 50,000 square meters, however, 45,185.85 square meters, more or less, of which are under the Community Mortgage Program (CMP); that Dreamland Homeowners Association, Inc., with Taxpayer Identification No. 006-295-014, is a legal association of underprivileged and homeless citizens, registered with the Housing and Land Use Regulatory Board (HLURB) under Certificate of Registration No. 13632 dated January 31, 2007. In support of its request Dreamland Homeowners Association, Inc. has completely submitted on February 22, 2011, the following documents: 1) Written Application for Exemption filed with the Law Division 2) Certified True Copy of the Transfer of Certificate of Title (TCT) or Original Certificate of Title (OCT) and/or Tax Declaration of the property to be transferred EDATSC 3) Certified True Copy of the Articles of Incorporation of the Community Association 4) Certified True Copy of the Masterlist of qualified beneficiaries, an enumeration of which is annexed to this ruling as Annex "A" 5) TIN ID or BIR Certificate of Registration of the Homeowners Association, 6) Certification of the President of Social Housing Finance Corporation that the subject properties qualify and are actually under the CMP; and 7) Site Development Plan of the lot sold to the Community Association. In reply, please be informed that pursuant to Section 20 of R.A. No. 7279, pertinent portions of which read: "Sec. 20. Incentives for Private Sector Participating in Socialized Housing. To encourage greater participation in socialized housing, and further reduce the cost of housing units for the benefit of the underprivileged and homeless, the following incentives shall be extended to the private sector: "xxx xxx xxx "(d) Exemption from the payment of the following: "(1) . . . (2) Capital gains tax on raw lands used for the project; xxx xxx xxx" Furthermore, please be informed that the conveyance by the landowner of the above-mentioned parcel of land under the socialized housing program is exempt from the payment of capital gains tax pursuant to Section 20 of R.A. No. 7279. (BIR Ruling Nos. [SH-(012) 127-09], [SH-(096) 634-09] and [SH-(131) 771-09]) Upon issuance of this letter of exemption, and upon registration of the documents of sale and the Certificate of Title of the said parcel of land which shall be issued in the name of the Association, it shall be expressly annotated by the Register of Deeds having jurisdiction over the properties that said properties shall be used for socialized housing pursuant to R.A. 7279. cTCaEA Notwithstanding the foregoing, the Bureau of Internal Revenue shall conduct verification and post-audit procedures confirming that the actual occupants of the properties transferred under the CMP are qualified beneficiaries thereof and that the sellers are rightfully entitled to exemption from the 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 verification, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ANNEX A Masterlist of Beneficiaries and Loan Apportionment No. Names Blk. Lot Lot TIN No. No. Area Numbers 1 Berdin, Mesian M. 1 1 148 296-185-022 2 Paule, Arturo P. 1 2 148 404-620-920 3 Japson, Mary Ann T. 1 3 147 937-024-833 4 Cagas, Angelita Y. 1 4 147 404-621-155 5 Acharon, Cervec A. 1 7 109 915-920-056 6 Alo, Lorly C. 1 8 113 281-811-261 7 Andrada, Gerwin C. 1 9 115 404-647-791 8 Yntong, Gloven R. 1 10 117 950-230-326 9 Nastor, Ruben F. 1 11 119 931-038-124 10 Ablao, Richard J. 1 12 121 932-222-702 11 Monleon, Etchel Grace S. 1 13 123 919-043-585 12 Calago, Jenalyn P. 1 14 125 919-072-547 13 Somosot, Estrelita C. 1 15 125 005-372-498 14 Cagas, Joey C. 2 1 148 932-933-474 15 Simbajon, Meriam B. 2 2 148 404-647-398 16 Villanueva, Jeofrey T. 2 3 150 402-416-245 17 Pepito, Claire P. 2 4 150 925-799-024 18 Laquip, Francisco B. 2 5 150 923-339-457 19 Pelin, Camelia F. 2 6 150 939-284-740 20 Alcantara, Edwin B. Jr. 2 7 150 404-629-944 21 Sapa, Hilson S. 2 8 150 932-230-956 22 Rabara, Marizel M. 2 9 150 930-470-437 23 Amoguis, Leonard E. 2 10 150 404-630-002 24 Tupas, Charlyn B. 2 11 150 404-869-680 25 Ricalde, Hazel A. 2 12 150 282-871-446 26 Plaza, Rosalie R. 2 13 150 404-869-885 27 Ricalde, Rian Jay A. 2 14 150 226-555-479 28 Nicolas, Ro-Anne S. 2 15 150 195-502-914 29 Nicolas, Leolalie S. 2 16 150 308-067-306 30 Simbajon, Gemma B. 2 17 150 937-024-825 4203 31 Balaba, Brenda S. 2 18 150 404-648-211 32 Pongase, Paul Andrew B. 3 3 150 169-164-467 33 Magpulong, Marife P. 3 4 150 172-999-052 34 Lacar, Mylene M. 3 5 150 305-873-125 35 Ferrer, Imelda L. 3 6 150 171-967-802 36 Hudieres, Carolyn C. 3 7 150 404-870-160 37 Divino, Rommel C. 3 8 150 195-534-581 38 Bialon, Virney B. 3 9 150 404-630-131 39 Adaya, Johnny S. 3 10 150 404-647-314 40 Acop, Melchor C. 3 11 150 919-072-546 41 Montinez, Wilfredo T. 3 12 150 404-630-381 42 Canto, Noemi O. 3 13 150 932-232-837 43 Lagare, Maria Teresa D. 3 14 150 938-292-819 44 Canto, Mario O. 3 15 162 926-341-816 45 Aleria, Joel S. 3 16 162 931-025-588 46 Tapi-on, Jogil D. 4 1 148 000-157-412 47 Deypuyart, Belly B. 4 3 150 921-340-825 48 Pamon, Carlito S. 4 5 150 404-630-727 49 Guaza, Richard B. 4 6 150 132-232-666 50 Custodio, Rafael C. 4 7 150 195-488-192 51 Daulong, Cherlita T. 4 8 150 404-630-496 52 Ramirez, Ismael Y. 4 9 150 404-631-279 53 Ponce, Crisologo S. 4 10 150 306-054-198 54 Digas, Michael S. 4 11 150 277-193-276 55 Agbulos, Jigger D. 4 12 150 195-512-384 56 Vanzuela, Michelle M. 4 13 150 210-495-109 57 Cape, Adela M. 4 14 150 147-393-804 58 Martinez, Leizl D. 4 15 150 938-100-803 59 Rafael, Jonard A. 4 16 150 202-006-832 60 Dapitan, Froiland E. 4 17 150 937-014-732 61 Manzures, Jerry L. 4 18 150 935-547-432 62 Dapitan, Chorchelle Joyce E. 4 19 150 404-631-003 63 Agana, Susette A. 4 20 150 935-547-408 64 Malunes, Zeus A. 4 21 148 907-889-751 65 Projo, Juanito L. 4 22 148 143-567-603 66 Bergado, Gloria Z. 5 1 148 404-647-515 67 Palermo, Gondelina M. 5 2 148 140-926-256 68 Tupas, Lovella G. 5 3 150 160-471-353 5714 69 Bongay, Marieta P. 5 4 150 917-468-332 70 Ulan-Ulan, Nancy T. 5 5 150 945-481-520 71 Cantiga, Eduardo A. Jr. 5 6 150 404-631-671 72 Miraflor, Mary Jane T. 5 7 150 151-305-300 73 Palermo, Jessie M. 5 8 150 404-647-686 74 Tonga, Danilo L. 5 9 150 953-682-414 75 Berco, Reynaldo E. 5 10 150 921-323-306 76 Gonce, Rhea B. 5 11 150 943-820-494 77 Danlag, Gloria S. 5 12 150 264-072-351 78 Balinas, Marizel B. 5 13 150 930-384-517 79 Abella, Lea S. 5 14 150 265-060-953 80 Narvaez, Jasper V. 5 15 150 404-631-497 81 Lagsila, James S. 5 16 150 927-963-107 82 Rosalijos, Lane M. 5 17 150 404-631-391 83 Agor, Joel E. 5 18 150 183-554-740 84 Cuyno, Julie Ann B. 5 19 150 404-631-915 85 Assin, Mary Jane A. 5 20 150 941-648-088 86 Jao, Cherry Mae B. 5 21 148 948-431-021 87 Gayam, Ronald J. 5 22 148 195-482-153 88 Tompong, Fe L. 6 1 148 938-288-406 89 Bernasor, Bernabe B. 6 2 148 404-870-910 90 Utlang, Elisa D. 6 3 150 921-305-993 91 Bernasor, Levie B. 6 4 150 404-870-799 92 Paraico, Elna A. 6 5 150 404-870-424 93 Joyno, Jonathan S. 6 6 150 902-792-724 94 Saura, Alejandro B. Jr. 6 7 150 940-804-621 95 Biyo, Rudy A. 6 8 150 927-964-095 96 Mercado, Rolle S. 6 9 150 404-871-074 97 Mallo, Richard J. 6 10 150 938-298-394 98 Latosa, Melecio R. Jr. 6 11 150 403-975-152 99 Blones, Ailene S. 6 12 150 938-289-407 100 Samonte, Jonathan P. 6 13 150 910-102-983 101 Arreglo, Jennie B. 6 14 150 195-490-040 102 Suyat, Albert P. 6 15 150 155-058-963 103 Renol, Gilbert D. 6 16 150 870-120-009 104 Osa, Julito A. 6 17 150 925-804-873 105 Pran, Maria Lyn A. 6 18 150 404-632-087 106 Savior, Alfredo N. Jr. 6 19 150 404-631-980 5692 107 Zambrona, Ruben N. Jr. 6 20 150 948-432-674 108 Abad, Armando L. 6 21 148 909-825-812 109 Rosauro, Teresita M. 6 22 148 189-328-290 110 Dadivas, Rodel C. 7 2 150 280-651-300 111 Feliprada, Mary Irene S. 7 3 150 267-412-443 112 Arellano, Cirilo P. 7 4 150 404-632-205 113 Tuyogon, Imee V. 7 5 150 932-235-814 114 Zambrona, Sanny N. 7 6 150 929-303-031 115 Patalinghug, Ronaldo O. 7 7 150 404-646-954 116 Patalinghug, Jenny O. 7 8 150 950-232-630 117 Magsayo, Rechel F. 7 9 150 404-632-297 118 Castro, Diomedes A. 7 10 150 404-632-519 119 Marquez, Celia B. 7 11 150 941-651-380 120 Zambrona, Rey N. 7 12 150 290-514-817 121 Marquez, Julio E. 7 13 150 932-228-120 122 Sullera, Resalyn M. 7 14 150 267-333-268 123 Maamo, Pinky Marie F. 7 15 150 913-003-381 124 Lechugas, Grace Y. 7 16 150 913-527-520 125 Vicencio, Nonita F. 7 17 148 303-136-280 126 Delco, Mary Delle J. 7 18 148 913-527-620 127 Bisquera, Armando T. Jr. 9 1 150 404-647-170 128 Quiam, Marife A. 9 2 150 156-144-693 129 Bisquera, Arcile T. 9 3 152 404-648-043 130 Alim, Sandy C. 9 4 152 938-098-482 131 Gantuangco, Chinesa A. 9 5 152 923-327-679 132 Jamili, William R. 9 6 152 275-873-070 133 Bastol, John C. 9 7 152 932-209-852 134 Cuyno, Dominic B. 9 8 152 941-633-387 135 Batoy, Lorna L. 9 9 150 911-663-976 136 Amande, Ronald Charlie A. 9 10 150 272-025-162 137 Hiser, Zoraida T. 10 1 150 404-870-642 138 Tadem, Remedios T. 10 2 150 123-928-048 139 Tadem, Nadia T. 10 3 152 265-710-195 140 Tadem, Gilbert C. 10 4 152 263-293-825 141 Cadungog, Ma. Theresa A. 10 5 152 404-632-664 142 Lorena, Girly L. 10 6 152 221-089-209 143 Blancaflor, Eleazar S. 10 7 152 404-632-786 144 Escobillo, Nina Menchie C. 10 8 152 221-809-298 5716 145 Mante, Felix T. Jr. 10 9 150 941-635-938 146 Daquil, Ronneth P. 10 10 150 931-035-873 147 Mahometano, Eric M. 11 1 148 242-199-303 148 Lacida, Julieto R. 11 2 148 932-210-716 149 Arca, Marife S. 11 3 150 909-826-209 150 Borja, Gerald C. 11 4 150 931-039-703 151 Arca, Gina M. 11 5 150 404-132-416 152 Labatorio, Harold C. 11 6 150 290-267-212 153 Abad, Rolando A. 11 7 150 925-824-909 154 Enabacan, Karen B. 11 8 150 404-870-800 155 Acharon, Angelyn T. 11 9 150 404-633-132 156 Enabacan, Jeoffrey M. 11 10 150 404-632-949 157 Rodriguez, Vanessa N. 11 11 150 942-773-601 158 Danoya, Myrna E. 11 13 150 404-633-384 159 Ginez, Leah Nery D. 11 15 150 190-445-572 160 Bonifacio, Mayette R. 11 16 150 932-226-137 161 Paglinawan, Alberto P. 11 17 150 404-648-697 162 Bonifacio, Alkris R. 11 18 150 294-469-210 163 Gelig, Arsenia C. 11 19 150 919-042-535 164 Formalejo, Samuel Emmanuel I. 11 20 150 404-648-612 165 Renol, Tirso D. Jr. 11 21 148 295-024-251 166 Avenido, Cresilda M. 11 22 148 914-472-591 167 Arenas, Daisy O. 12 3 150 404-870-801 168 Arapan, Roldan M. 12 4 150 125-806-499 169 Gasque, Roberto C. Jr. 12 5 150 938-127-035 170 Suela, Ma. Riza L. 12 6 150 404-639-604 171 Atok, Raul P. 12 7 150 157-224-772 172 Ducusin, Jelita R. 12 8 150 201-705-393 173 Talaugon, Eddie O. 12 9 150 919-044-351 174 Sullaga, Mateo S. 12 10 150 142-414-727 175 Toledo, Jesher T. 12 11 150 404-647-904 176 Camia, Adrian S. 12 12 150 401-388-893 177 Felisilda, Felimon A. 12 13 150 269-915-642 178 Nicor, Jerry B. 12 14 148 404-640-843 179 Posadas, Jonathan L. 13 1 148 404-641-141 180 Valdevieso, Liza Amor T. 13 2 150 404-641-289 181 Blancaflor, Elmer S. 13 3 150 938-284-890 182 Coa, Emeberto S. Jr. 13 4 150 092-237-241 5688 183 Rivas, Erwin W. 13 5 150 404-641-551 184 Escobillo, Cherry Mae L. 13 6 150 947-634-785 185 Loreno, Gerard L. 13 7 150 404-641-803 186 Abergonzado, Fe V. 13 8 150 404-642-119 187 Alabe, Artchie C. 13 9 150 270-927-570 188 Alabe, Meriam C. 13 10 150 938-100-543 189 Cona, Christopher S. 13 11 150 190-444-066 190 Manatad, Carlito C. 13 12 150 925-810-427 191 Mariquit, Rolando M. 13 13 150 404-618-947 192 Bongcayo, Julito M. 14 1 128 915-937-464 193 Acop, Mary Grace C. 14 2 132 919-072-549 194 Ramos, Larry G. 14 3 134 919-912-204 195 Tomales, Veronica C. 14 4 136 919-072-545 196 Labastida, Susan G. 14 5 138 128-952-261 197 Labastida, Imelda G. 14 6 140 271-877-800 198 Basilio, Fernando R. 14 7 142 118-896-922 199 Pula, George M. 14 8 144 941-650-075 200 Amancio, Arnold H. 14 9 146 929-660-012 201 Jo, Braulio C. Jr. 14 10 148 241-031-585 202 Dadivas, Jessie C. 14 11 150 404-648-509