Union Square One Condominium Corporation Should File ITR

May 5, 1993 BIR RULING NO. 193-93 UNION SQUARE ONE CONDOMINIUM CORPORATION SHOULD FILE ITR 26 (g) 000-00 193-93 Union Square One Condominium Corporation 145 15th Avenue, Cubao, Quezon City 1100 Attention: Ms . Angeles L . Lee Building Administrator This refers to your letter dated April 14, 1992, requesting for tax exemption pursuant to Section to Section 26 (g) of the Tax Code, as amended. It is represented that you are a non-stock, non-profit corporation organized for the purpose of holding title to and managing the common areas of the condominium building and "to contribute, assist and provide in whatever capacity or form to any to any social welfare program, such as the charity, for the purpose of aiding financially or in any other aid typhoon victims, fire and other natural calamities, and scholarship for son and daughter of poor but deserving student in high school and in college". In reply, please be informed that the services to be rendered by a condominium corporation benefit only the common areas of the condominium project as well as the members thereof who are the owners of the condominium units and services to be rendered do not benefit the community as a whole; and that the inclusion in the Articles of Incorporation of Union Square One Condominium Corporation of a social welfare purpose is merely incidental or secondary to its primary purpose as aforestated. Such being the case, the Union Square One Condominium Corporation, cannot be considered an organization operated exclusively for the promotion of social welfare as contemplated under Section 26(g) of the Tax Code, for the promotion of social welfare covers activities that advance the common good and general welfare of the people of the community (34 Am. Jur . 2d 1976 Ed.); and since the activities of Union Square One Condominium Corporation are primarily for the benefit of the unit owners of said corporation, it cannot be considered a civic league or social welfare organization. It has been held that an association formed by the unit owners of a condominium project to provide for the arrangement, maintenance and care of the common areas of the project is not a tax-exempt social welfare organization (34 Am. Jur . 2d, 1976 Ed., p. 586). Consequently, the Union Square One Condominium Corporation should file an income tax return and pay income tax. aisadc VICTOR A. DEOFERIO, JR. Deputy Commissioner of Internal Revenue