Samahan Tawid Sapa Dos Homeowners Association, Inc.

May 16, 2016 BIR RULING NO. 190-16 RA 7279; Sections 32 (B) (7) (b) & 196, of the Tax Code of 1997, as amended; BIR Ruling No. 046-16 Samahan Tawid Sapa Dos Homeowners Association, Inc. Tawid Sapa II Phase 1 Brgy. Kaligayahan, Novaliches, Quezon City Attention: Edgar Tucod President Gentlemen : This refers to the letter dated April 22, 2013 of Housing, Community Development and Resettlement Department of the Quezon City Government, requesting exemption from payment of taxes for the sale of the government-owned properties to the members 1 of Samahan Tawid Sapa Dos Homeowners Association, Inc. (STSDOSHOA) through the socialized housing program of the City. Document submitted disclosed that on February 1998, a Memorandum of Agreement (MOA) was entered into by and between the City Government and STSDOSHOA for the acquisition of Lot 876 of the Tala Estate comprising of Twenty Thousand Six Hundred Forty Two square meters (20,642 sq.m.) under the Community Mortgage Program (CMP) at the agreed selling price of One Thousand Two Hundred Pesos (P1,200.00) per square meter. On January 23, 2001, an Ordinance No. SP 1020 S-2001 was ordained by approving the subdivision plan of Tawid Sapa II Phase I, a Socialized Housing Project (BP Blg. 220) with Three Hundred Thirty Five (335) 2 lots under CMP, containing an area of Twenty Thousand Six Hundred Forty Two square meters (20,642 sq.m.) covered by Transfer Certificate of Title (TCT) No. 35564 of the Registry of Quezon City, owned by the Quezon City Government, located at Lot 876, Barangay Kaligayahan, Quezon City. HTcADC On May 6, 2003, a Resolution No. SP-2064, S-2003, 3 was adopted authorizing the City Mayor to enter into a MOA with STSDOSHOA for direct Sale instead of CMP upon appeal by the latter and changing the mode of land acquisition from CMP to direct sale. In reply, please be informed that Sections 2 and 4 of Republic Act (RA) No. 7279, otherwise known as the Urban Development and Housing Act of 1992 provide as follows: Sec. 2. Declaration of State Policy and Program Objectives. It shall be the policy of the State to undertake, in cooperation with the private sector, a comprehensive and continuing Urban Development and Housing Program, hereinafter referred to as the Program, which shall: (f) Improve the capability of local government units in undertaking urban development and housing programs and projects. xxx xxx xxx Sec. 4. Coverage. The Program shall cover all lands in urban and urbanizable areas, including existing areas for priority development sites, and in other areas that may be identified by the local government units as suitable for socialized housing. Moreover, as an instrumentality of the government which acts for the purpose of accomplishing government policies and objectives and extending essential services to the people performs governmental and not proprietary functions. Peoples' Homesite and Housing Corporation vs. Court of Industrial Relations , 150 SCRA 296, 310 (1987). Thus, in line with the foregoing and since it is a declared State policy as laid down in Republic Act No. 7279, otherwise known as the "Urban Development and Housing Act of 1992", to provide decent and affordable housing to the underprivileged and homeless citizens and to improve the capability of local government units in undertaking urban development and housing programs and projects. (BIR Ruling 046-2016 dated January 28, 2016) CAIHTE Accordingly, distribution or transfer of the lots to the beneficiaries of socialized housing project of STSDOSHOA is exempt from Income Taxes/Donors Tax. The City Government of Quezon, which is tasked to implement the distribution of the housing units, shall not be subject to any tax, for it is only performing a mandated governmental function of providing shelter to the members of STSDOSHOA. (BIR Ruling 137-10 dated December 7, 2010) On the other hand, the distribution or transfer of the lots to the beneficiaries of socialized housing project of STSDOSHOA is subject to the documentary stamp tax (DST) imposed under Section 196 of the Tax Code of 1997, as amended, in accordance with Revenue Regulations No. 11-97, as amended by Revenue Regulations No. 17-2001. The DST herein imposed, however, shall be based on the actual consideration considering that one of the contracting parties is the Government pursuant to Revenue Memorandum Order No. 41-91 and Section 196 of the Tax Code of 1997. (BIR Ruling 137-10 dated December 7, 2010) However, the notarial acknowledgment to the individual deed of conveyance is subject to the documentary stamp tax of P15.00 pursuant to Section 188 of the Tax Code of 1997, as amended. 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. aScITE Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ANNEX Samahan Tawid Sapa Dos Homeowners Association, Inc . Tawid Sapa II Phase 1 Brgy. Kaligayahan, Novaliches, Quezon City No. Name of Beneficiary L B Area 1 Macasocol, Edina D. 1 1 31 2 Vinluan, Rogelio C. 2 1 31 3 Villaflor, Orlando P. 3 1 45 4 Vinluan, Roberto C. 4 1 45 5 Bautista, Enrico D. 5 1 45 6 Bautista, Fernando F. 6 1 45 7 Marbil, Ernesto J. 7 1 45 8 Colindres, Egualberto A. 8 1 45 9 Angelo, Reynaldo L. 9 1 45 10 Bernardino, Marcelino Jr. G. 10 1 45 11 Bernardino, Imelda G. 11 1 45 12 Sangco, Ma. Delia V. 12 1 45 13 Plaza, Jerry June A. 13 1 45 14 Agoo, Richard A. 14 1 45 15 Agoo, Herman A. 15 1 45 16 Elorsa, Romeo V. 16 1 45 17 Marquez, Antonio M. 17 1 45 18 Ocate, Villanueva Reggie 18 1 45 19 Ocate, Percival V. 19 1 45 20 Carsa, Rogelio B. 20 1 45 21 Ballenas, Teresita M. 21 1 45 22 Hitotuane, Roberto P. 22 1 45 23 Gozon, Raymundo R. 23 1 45 24 Macasocol, Lydia O. 24 1 45 25 Herrera, Merlyn P. 25 1 45 26 Espejo, Victoriano G. 26 1 56 27 Dirain, Leo L. 1 2 34 28 Derain, Delio L. 2 2 33 29 Dirain, Delfin L. 3 2 34 30 Milanes, Alvin B. 4 2 34 31 Alegria, Tito M. 5 2 36 32 Arnacio, Jonathan A. 6 2 36 33 Arcanio, Mario Jr. V. 7 2 36 34 Baculado, Narciso F. 8 2 36 35 Casaljay, Villa L. 9 2 36 36 Baculado, Orlando R. and Baculado, Marissa R. 10 2 36 37 Marcial, Emily T. 11 2 36 38 Boller, Michael B. 12 2 36 39 Tafalla, Jr., Benjamin B. 13 2 36 40 Ao, Rowena T. 14 2 36 41 Binalla, Marieta DC. 15 2 36 42 Bigay, Armando V. 17 2 36 43 Panganiban, Jacinto M. 18 2 36 44 Panganiban Christian S. 19 2 36 45 Nova, Elmer P. 20 2 36 46 Curatcha, Jr., Victorino B. 21 2 36 47 Valera, Ricky B. 23 2 36 48 Dela Cruz, Jerry F. 25 2 36 49 Matias, Susana C. 26 2 36 50 Visitacion, Marilyn V. 27 2 36 51 Benavides, Nilo A. 28 2 39 52 Fernandez, Carlos E. 1 3 35 53 Cabilin, Gorgonio T. 2 3 35 54 Madera, Antonio B. 3 3 36 55 Rosillo, Teresita C. 4 3 36 56 Daras, Bernardo L. 5 3 36 57 Baculado, Jerry R. 6 3 36 58 Malinao, Servando T. 7 3 36 59 Jazmines, Ma. Christy A. 8 3 36 60 Andan, Danilo M. 9 3 36 61 Flordeliza, Anaceto B. 10 3 36 62 Balonzo, Betty E. 11 3 36 63 Mangilaya, Lugta B. 12 3 36 64 Tabianan, Benjamin C. 13 3 36 65 Tulod, Regina Rose C. 14 3 36 66 Orogo, Carol D. 15 3 36 67 Tabianan, Nicostrato C. 16 3 36 68 Tabianan, Cosolacion N. 17 3 36 69 Escote, Larry B. 18 3 36 70 Alvarez, Joel M. 19 3 36 71 Garin, Dolores O. 20 3 36 72 Tarrayo, Ronnie A. 21 3 36 73 Pasilan, Renante Y. 22 3 36 74 Cabarle, Teresita M. 23 3 36 75 Montes, Maribel 25 3 36 76 Miano, Remedios S. 26 3 36 77 Peaar, Teresita M. 27 3 36 78 Lagrama, Lovy R. 29 3 36 79 Cunahap, Maritess M. 30 3 36 80 Vargas, Igmidio C. 31 3 36 81 Carbonel, Jayron T. 32 3 36 82 Arroyo, Gedeon C. 33 3 36 83 Masibag, Renato P. 34 3 36 84 Bernaldez, Sofronio Jr. P. 35 3 36 85 Gamboa, Jerry M. 36 3 36 86 Bernaldez, Nenita P. 37 3 36 87 Peaar, Jose M. 38 3 36 88 Peaar, Rafael M. 39 3 36 89 Andres, Bonifacio S. 40 3 36 90 Zaracena, Sherwin M. 41 3 28 91 Peaar, Mario M. 42 3 41 92 Delos Reyes, Benjamin S. 43 3 39 93 Resurreccion, Marie Anthonette C. 44 3 41 94 Tarrayo, Dolores A. 1 4 44 95 Pioquinto, Marivic C. 2 4 45 96 Daras, Jr., Victoriano L. 3 4 45 97 Masibag, Esencio A. 4 4 45 98 Cagadas, Anita N. 5 4 45 99 Mitante, Rogelio V. 6 4 45 100 Marcial, Jimmy H. 7 4 45 101 Ramos, Sr., Rex 8 4 45 102 Notarion, Jesus M. 9 4 45 103 Danao, Danilo F. 10 4 45 104 Badal, Edgar B. 11 4 45 105 Vilog, Henry Prisco 12 4 45 106 Notarion, Jorge O. 13 4 45 107 Prades, Matilde P. 14 4 45 108 Barcarse, Robert T. 15 4 45 109 Padilla, Norberto L. 16 4 45 110 Arambala, Ma. Cleofe S. 1 5 45 111 Garcia, Jr., Andres V. 2 5 45 112 Arboleda, Alberto R. 3 5 45 113 Marzan, Sarah E. 4 5 45 114 Dumrique, Teofilo L. 5 5 45 115 Lahoylahoy, Lucio R. 6 5 45 116 Blancia, Marlon B. 7 5 45 117 Madria, Rogelio Q. 8 5 45 118 Dalisay, Marilou B. 9 5 45 119 Ballenas, Lorna A. 10 5 45 120 Besana, Nelson M. 11 5 45 121 Ballenas, Irene A. 12 5 45 122 Cabangon, Milan M. 13 5 45 123 Leyva, Lorna C. 14 5 45 124 Cabangon, Milvyn M. 15 5 45 125 Bohol, Joel F. 16 5 45 126 Labrague, Wilfredo F. 1 6 45 127 Labrague, Emelinda C. 2 6 45 128 Floro, Myler L. 3 6 45 129 Bataller, Salvador A. 4 6 45 130 Bersamina, Eusebio D. 5 6 45 131 Rigonan, Edgar C. 6 6 45 132 Lapso, Romualdo L. 7 6 45 133 Vijar, Eduardo 8 6 45 134 Cai, Evangeline V. 9 6 45 135 Recabo, Magdalino E. 10 6 45 136 Sanchez, Dioscoro V. 11 6 45 137 Masibag, Perfecto L. 12 6 45 138 Lagonsin, Nelson A. 13 6 45 139 Romeroso, Alex C. 14 6 45 140 Dales, Francisco G. 2 7 45 141 Plaza, Fernando F. 3 7 45 142 Cuaterno, Gilbert Q. 4 7 45 143 Gomez, Eddie D. 5 7 45 144 Garcia, Rolando V. 6 7 45 145 Sanchez, Erlinda V. 7 7 45 146 Ballenas, Diness M. 8 7 45 147 Sanchez, Nelson V. 9 7 45 149 Ybaez, Romeo R. 10 7 45 149 Lapso, Jessie B. 11 7 45 150 Calagos, Aida B. 12 7 45 151 Ong, Charlie S. 13 7 45 152 Tubeo, Maurelio O. 1 8 45 153 Portugal, Jr., Luis B. 2 8 38 154 Aguirre, Honorina R. 3 8 45 155 Vallespin, Aurelio P. 4 8 38 156 Velasco, Nestor B. 5 8 48 157 Ebuenga, Jr., Herberto P. 6 8 38 158 Tulod, Edgar T. 1 9 39 159 Garferio, Percy G. 2 9 39 160 Campos, John M. 3 9 39 161 Segundera, Dorothy Joy F. 4 9 45 162 Arroyo, Leopoldo R. 5 9 42 163 Segundera, Luz F. 6 9 38 164 Sumayang, Rico E. 7 9 41 165 Ballao, Elvin D. 1 11 30 166 Agnote, Fernando Jr. R. 2 11 30 167 Tapel, Manuel T. 3 11 30 168 Landicho, Romulo A. 4 11 30 169 Ducay, Wilfredo B. 5 11 31 170 Ducay, Jerry B. 6 11 30 171 Meeza, Maite A. 7 11 30 172 Bataller, Michael C. 8 11 30 173 Agnote, Gener G. 9 11 30 174 Guevarra, Jerome D. 10 11 30 175 Guevarra, Agosto V. 11 11 31 176 Balanguit, Rodolfo P. 12 11 32 177 Lagbo, Rolando A. 13 11 32 178 Agnote, Eduardo H. 14 11 32 179 Bocaya, Salvador B. 15 11 32 180 Luzon, Carmelito P. 16 11 32 181 Castro, Annabel B. 17 11 30 182 Bognalos, Jr., Martin B. 18 11 29 183 Daras, Ariel L. 19 11 29 184 Orogo, Ricardo A. 1 12 46 185 Sacapao, Charny T. 2 12 33 186 Villena, Fred S. 3 12 36 187 Dela Cruz, Jeffrey 4 12 45 188 Ballao, Regolo D. 5 12 36 189 Leyno, Marilou L. 6 12 40 190 Ballao, Melina A. 7 12 36 191 Cortezano, Romeo B. 8 12 32 192 Felizarte, Ronie A. 9 12 32 193 Baylon, Rommel G. 10 12 32 194 Roxas, Joselito E. 11 12 32 195 Cortezano, Luzviminda B. 12 12 32 196 Hamor, Benito D. 14 12 32 197 Agnote, Rosalio Jr. H 15 12 32 198 Agnote, Ramon H. 16 12 32 199 Gumal, Edgardo B. 17 12 32 200 Beriso, Domingo P. 18 12 37 201 Villarosa, Rowena G. 19 12 37 202 Ballesteros, Rewel De Guzman 20 12 37 203 Avellana, Norma A. 21 12 37 204 Floresca, Joselita A. 22 12 37 205 Arriola, Rodolfo M. 23 12 37 206 Cortina, Alvin G. 24 12 37 207 Obias, Verlina A. 25 12 41 208 Tabay, Virgilio B. 26 12 32 209 Rendon, Emily A. 27 12 32 210 Frayres, Rogelio C. 28 12 32 211 Martin, Miguel B. 29 12 32 212 Magpali, Jessie M. 30 12 32 213 Pancho, Jr., Ricardo A. 31 12 32 214 Reyes, Gerardo E. 32 12 32 215 Habalita, Shirley C. 33 12 32 216 Lazarte, Vicente T. 34 12 32 217 Pagui, William T. 35 12 32 218 Calong, Loreta L. 36 12 32 219 Lazarte, Teofanes N. 37 12 32 220 Juan, Dante A. 38 12 32 221 Capaycapay, Manuel F. 39 12 32 222 Torrejas, Armando M. 40 12 32 223 Lapis, Maria S. 41 12 32 224 Mallari, Mitchelle B. 42 12 32 225 Bongato, Victoria L. 43 12 32 226 Torrejas, Alejandro M. 44 12 32 227 Pinoy, Lorenzo C. 45 12 32 228 Reyes, Abelito E. 46 12 32 229 Bermillo, Nonito B. 47 12 32 230 Vallarta, Alexander P. 48 12 32 231 Vallarta, Melchor P. 49 12 32 232 Caspi, Julio R. 50 12 32 233 Rodriguez, Manuel V. 51 12 32 234 Rodriguez, Benjamin S. 52 12 32 235 Geli, Ariel A. 53 12 32 236 Peero, Soccoro B. 54 12 32 237 Torrejas, Alicia M. 55 12 32 238 Lopez, Rowena C. 56 12 32 239 Batomalaque, Julito M. 57 12 31 240 Sevilla, Felipe M. 58 12 31 241 Diao, Miguel V. 59 12 31 242 Bautista, Salvacion E. 60 12 32 243 Cabo, Perlito Escoton 61 12 32 244 Hermosa, Camilo M. 63 12 32 245 Imus, Evangeline O. 64 12 32 246 Medina, Loreto E. 66 12 39 247 Madriaga, Charito E. 67 12 32 248 Angustia, Daisy A. 68 12 32 249 Escoton, Pedro A. 69 12 32 250 Peero, Dante N. 1 13 35 251 Iglesias, Rigardo H. 2 13 36 252 Real, Mario A. 3 13 32 253 Arroyo, Ernesto 4 13 32 254 Genelazo, Vicente P. 5 13 33 255 Ebuenga, Nilo G. 1 14 32 256 Sunga, Jonathan S. 2 14 31 257 San Pedro, Martin L. 3 14 32 258 Belmonte, Rodel C. 4 14 32 259 Alvarez, Donato R. 5 14 37 260 Daffon, Rodolfo M. 6 14 37 261 Competente, Arlene E. 7 14 37 262 Manzo, Eduardo P. 1 15 31 263 Sacsi, Edwin D. 2 15 32 264 Navarra, Evelyn N. 3 15 32 265 Espigol, Wenifrido C. 4 15 32 266 San Pedro, Jennifer L. 5 15 32 267 San Pedro, Marites S. 6 15 32 268 Del Agua, Ferdinand B. 7 15 27 269 Rey, Arturo R. 8 15 27 270 Benavides, Domingo A. 9 15 29 271 Pelicano, Wilfredo S. 1 16 31 272 Tabuquilde, Adolfo J. 2 16 32 273 Benavides, Jr., Nazario A. 3 16 38 274 Lacsa, Jr., Lucio A. 4 16 32 275 Ecaldre, Julie T. 1 17 32 276 Autor, Violeta A. 2 17 40 277 Anaya, Eduardo R. 4 17 32 278 Diche, Adelaida V. 5 17 40 279 Tentia, Gaveluz G. 1 18 32 280 Basquinez, Helen N. 2 18 32 281 Cofino, Berulo A. 3 18 32 282 Asadon, Florencio D. 4 18 32 283 Ebuenga, Guadencio G. 5 18 36 284 Manalaysay, Ismael S. 6 18 51 285 Manaloto, Emelita A. 1 19 40 286 Salvane, Virginia A. 2 19 32 287 Morales, Romulo Partible 3 19 32 288 Solano, Jovylyn Dela Cruz 4 19 32 289 Ramos, Jesus G. 5 19 31 290 Baladjay, Sherly A. 6 19 27 291 Parias, Jr., Danilo M. 1 20 49 292 Tan, Ricardo D. 2 20 32 293 Novis, Marolyn P. 3 20 32 294 Gubangco, Enrico M. 1 21 32 295 Sayde, Elena B. 2 21 32 296 Marahay, Eddieto M. 3 21 32 297 Fernandez, Corazon L. 4 21 32 298 Deinla, Robert A. 5 21 34 299 Domingo, Cyrine T. 6 21 32 300 Tan, Ma. Joana D. 1 22 32 301 Sarza, Daniel B. 2 22 40 302 Montaez, Rey A. 1 23 36 303 Serote, Carmelita V. 2 23 35 304 Amam, Lucio A. 3 23 32 305 Cagampang, Jimmy E. 4 23 32 306 Baylosis, Vilma G. 5 23 32 307 Bajamonde, Restituto S. 6 23 32 308 Launio, Jaimelito L. 7 23 32 309 Lalo, Lauro S. 8 23 45 310 Garbin, Antonio J. 9 23 32 311 David, Carlito P. 10 23 32 312 Sabellina, Joseph B. 11 23 32 313 Imus, Wenceslao L. 12 23 32 314 Labrador, Rodolfo P. 13 23 29 315 Marao Jr., Antonio S. 1 24 32 316 Agustia, Rowena A. 2 24 32 317 Lacaba, Eulogio E. 3 24 32 318 Gibe, Macario N. 4 24 32 319 Moloboco, Alfredo A. 5 24 32 320 Angustia, Ricky B. 6 24 32 321 Torejas, Aniceto M. 8 24 32 322 Alagon, Roger G. 9 24 32 323 Escoton, Gether S. 10 24 51 324 Imus, Julio L. 1 25 32 325 Alagon, Socorro R. 2 25 32 326 Suaring, Julian A. 3 25 32 327 Geron, Richard M. 4 25 32 328 Imus, Orlando L. 5 25 48 329 Marcos, Eduardo C. 1 26 32 330 Imus, Jr., Enrique L. 2 26 32 331 Marao, Floriza C. 3 26 32 332 Imus, Ernany L. 4 26 32 333 Cataduanes, Shirley D. 5 26 32 334 Tuyo, Marites L. 6 26 32 335 Deinla, Ruby D. 7 26 32 336 Rabaja, Rufo R. 8 26 32 337 Deinla, Lorna R. 9 26 32 338 Dagdag, Marina L. 10 26 31 339 Lalaguna, Ruben A. 1 27 34 340 Atencio, Jacinto Q. 2 27 37 341 Nadela, Carlito E. 3 27 34 342 Bautista, Consolita 4 27 34 343 Sarion, Ramon M. 5 27 34 344 Aquino, Rolando De Guzman 6 27 34 345 Olarte, Antonino R. 1 28 34 346 Lapiz, Ricardo S. 2 28 34 347 Sandoy, Rolando E. 3 28 35 Footnotes 1. See Annex (Partial List of Beneficiaries). 2. Altered from 335 to 359 as approved by SP-1299, S-2003. 3. A RESOLUTION AUTHORIZING HIS HONOR, CITY MAYOR FELICIANO R. BELMONTE, JR., TO ENTER INTO A MEMORANDUM OF AGREEMENT WITH THE SAMAHANG TAWID SAPA DOS PHASE I HOMEOWNERS ASSOCIATION FOR THE DIRECT SALE OF SEVERAL PARCELS OF LAND WITH A TOTAL AREA OF TWENTY THOUSAND SIX HUNDRED FORTY-TWO SQUARE METERS (20,642 SQ.M.) SITUATED IN SITIO TAWID SAPA I BARANGAY KALIGAYAHAN, QUEZON CITY.