Sale/Transfer of Property With Total Value of Less Than

December 29, 1993 BIR RULING NO. 548-93 SALE/TRANSFER OF PROPERTY WITH TOTAL VALUE OF LESS THAN P500,000.00 REQUIREMENTS FOR 0% 2.5% CWT 50 (b) 275-92 548-93 Mr. Ramon P. Tioseco R.P. Tioseco Realty Corporation Suite 214 Bank of PI Building Aurora Boulevard, Quezon City This refers to your letters dated March 4 and 6, 1993 to Atty. Estrella Martinez, Asst. RDO, Marikina, Metro Manila, and to Atty. Eulogio H. Natividad, Chief, Assessment Performance Control Division, requesting clarification on Revenue Regulations No. 12-89 and Revenue Memorandum Circular No. 80-89, as amended by Revenue Regulations No. 1-90 and Revenue Memorandum Circular No. 7-90, relative to the creditable withholding tax on sales, exchanges, or transfers of real property when the consideration for the sale of the lot or house and lot per transaction does not exceed P500,000.00. LLpr In reply thereto, please be informed that under paragraph Nos. 2 and 3, Revenue Memorandum Circular No. 7-90, as amended by Revenue Memorandum Circular No. 16-90 clarifying some pertinent provisions of Revenue Regulations No. 12-89, as amended by Revenue Regulations No. 1-90, implementing Section 50(b) of the Tax Code, as amended, in order to remove the bias against low-cost housing projects registered under P.D. No. 957 (open market housing law) and to simplify tax administration, all sales, exchanges or transfers of real property on or after March 1, 1990 shall be subject to zero (0%) percent , regardless of the law under which the project is registered, i.e., Batas Pambansa Blg. 220 (socialized housing law) or P.D. No. 957 (open market housing law) provided that the consideration does not exceed P500,000.00. In other words, the project must be registered under P.D. 957 or Batas Pambansa Blg. 220 "as a low-cost housing project" and the consideration does not exceed P500,000.00, subject to verification by the Revenue District Officer where the property or project is located. However, projects registered under R.A. 7279 as implemented by Rev. Reg. No. 9-93 for socialized housing for the benefit of underprivileged and homeless Filipino citizens shall be qualified for the tax incentives provided therein. Furthermore, to be entitled to the lower withholding tax rate of 0% or 2.5%, the presentation of the Certificate of Registration and License to Sell for a subdivision on condominium project issued by the Housing and Land Use Regulatory Board (HLURB) shall be sufficient proof for purposes of the required Housing and Urban Development Coordinating Council (HUCC/HLURB) Certification in the regulations (Revenue Regulations No. 12-89, as amended by Revenue Regulations No. 1-90). prll LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue