BIR Ruling No. 580-12

September 21, 2012 BIR RULING NO. 580-12 RA 7279; BIR Ruling No. 005-11; BIR Ruling No. 367-11 Napico Homeowners Association I, Inc. 426 Taniman Avenue, NAPICO Pasig City Attention: Ms. Anitanida T. Montero President Gentlemen : This refers to your letter dated May 12, 2010 requesting exemption from the payment of documentary stamp tax relative to the transfer of title of land from Napico Homeowners Association I, Inc. in favor of its four hundred thirteen (413) qualified member-beneficiaries pursuant to Republic Act 7279 otherwise known as the "Urban Development and Housing Act of 1992". It is represented that Napico Homeowners Association I, Inc. with Taxpayer's Identification No. 003-980-137-000, is the registered owner of a parcel of land located at 426 Taniman Avenue, Napico, Pasig City and covered by Transfer Certificate of Title No. P-125301 issued by the Registry of Deeds for Quezon City; that it is a non-stock, non-profit organization duly registered with the Housing and Land Use Regulatory Board (HLURB);that the aforesaid lot was acquired through a loan under the Community Mortgage Program (CMP) of the Social Housing Finance Corporation (SHFC);that said project was taken-out/paid on June 23, 2003 in the amount of Php18,629,073.88; and that the Napico Homeowners Association I, Inc.,is now in the process of subdividing the purchased property to its member-beneficiaries (See Annex) . In support of its request, Napico Homeowners Association I, Inc. has completely submitted on April 12, 2012 the following documents: 1) Written Application for Exemption filed with the Law Division; 2) Certified True Copy of the Transfer Certificate of Title (TCT); 3) Certification from the Social Housing Finance Corporation (SHFC) that the property was acquired through CMP; 4) Certified true copy of the Articles of Incorporation of the community association; 5) Certified true copy of the Masterlist of qualified beneficiaries duly certified by the appropriate body (HLURB, NHA, LGU); SHAcID 6) BIR Certificate of Registration of the Homeowner Association; and 7) Other pertinent documents . In reply, please be informed that the transfer in favor of your individual member-beneficiaries of the said subdivided property is not subject to either the capital gains tax imposed under Section 27 (D) (5) of the Tax Code of 1997, as amended, or the creditable withholding tax imposed under Revenue Regulations No. 2-98, as amended, implementing Section 57 (B) of the same Code, considering that the said transfer of property is without any consideration since it is merely a formality to finally effect the transfer of the said property to its member-beneficiaries who actually bought the same from the former owner through your Association. In other words, the association is in fact transferring the ownership of the property to its member-beneficiaries who actually own the same. Furthermore, the said transfer is not subject to the donor's tax imposed under Section 99 of the Tax Code of 1997, since there is no donative intent or intention on your part to donate the said property to said member-beneficiaries, considering that you could not donate property the ownership of which belong to the donees (member-beneficiaries) themselves. (BIR Ruling No. 005-11 dated January 19, 2011 and BIR Ruling No. 367-11 dated October 5, 2011) It is noted that under Section 196 of the Tax Code of 1997, the deeds or documents subject to the documentary stamp tax imposed therein are those where the realty sold shall be granted, assigned, transferred, or otherwise conveyed to a purchaser or purchasers or to any other person or persons designated by such purchaser or purchasers, thereby excluding from its purview the instant case considering that the supposed purchasers are actually the owners thereof. Besides, no consideration is involved in said transaction upon which the tax imposed could be based. aEcHCD Accordingly, the transfer of title of the said property in favor of your member-beneficiaries is not subject to the documentary stamp tax imposed under Section 196 of the Tax Code of 1997. However, the notarial acknowledgment to said deed of conveyance is subject to the documentary stamp tax of P15.00 pursuant to Section 188 of the Tax Code of 1997. (BIR Ruling No. 005-11 dated January 19, 2011 and BIR Ruling No. 367-11 dated October 5, 2011) It is, however, understood that the Certificate Authorizing Registration (CAR) shall only be issued after the submission of the requirements provided under RMO 15-2003 and after it is established upon proper verification by the Revenue District Officer (RDO) concerned that, considering the rules on valuation of real property, the actual selling price per sale transaction of the house and lot packages in this case does not really exceed P400,000.00 and P160,000.00 for lot only. Thus, sale of a house and lot or lot only above the maximum amount shall be subject to the corresponding internal revenue taxes. (BIR Ruling No. 005-11 dated January 19, 2011 and BIR Ruling No. 367-11 dated October 5, 2011) 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. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ATTACHMENT Napico Homeowners Association I, Inc. 426 Taniman Avenue, NAPICO Pasig City Name of Beneficiary Blk. No. Lot No. Total Area (sq. m.) 1 Garcia, Godofredo Jr. 1 1 37 2 Quizzagan, Sebastian 1 3 21 3 Rosales, Iluminada 1 4 18 4 Pantonilla, Cynthia V. 1 5 67 5 NAHA 1 Office 1 6 75 6 Abuan, Caridad 1 7 70 7 Carlos, Luis Victor 1 9 69 8 Dilan, Rodolfo 1 10 69 9 Mendoza, Gildo 1 11 61 10 Pantonilla, Jesus 1 12 69 11 Quizzagan, Sebastian 1 13 78 12 Manuales, Ceferino 1 14 71 13 Celerina, Belen 1 15 61 14 Reyes, Teodora 1 16 48 15 Almadovar, Elena 1 17 74 16 Cerbito, Anastacia 1 19 63 17 Balais, Norma 1 20 47 18 Acosta, Romeo 1 21 31 19 Gacula, Danilo 1 22 70 20 Elera, Francisco 1 23 70 21 Parana, Irene 1 25 71 22 Jumao-as, Milagros 1 26 84 23 Mangarun, Pagayukan 1 27 63 24 Rico, Flora 1 28 74 25 Bantao, Jeratol 1 29 31 26 Constantino, Zenaida 1 30 34 27 Andula, Gina 1 31 70 28 Nicolas, Lorna 1 32 73 29 Cabili, Simaco M. 1 33 37 30 Calderon, Norberto 1 34 38 31 Hebras, Louie Angelo 1 36 72 32 Bagay, Mejole M. 1 37 67 33 Leonidas, Rolando A. 1 38 70 34 Bautista, Catalina T. 1 39 71 35 Azul, Jerson 1 41 67 36 Makinano, Francia 1 42 31 37 Gonzales, Felicitas 1 43 33 38 Laboguen, Evangeline 1 44 72 39 Sonido, Cayetana S. 1 45 65 40 Magalona, Sofia 1 46 36 41 Sonido, Arturo 1 47 41 42 Jimenez, Robert 1 48 82 43 Abayon, Larry 1 50 70 44 Racines, Peter 1 51 33 45 Repayo, Alejandro 1 52 33 46 Membrado, Domingo 1 53 41 47 Rempillo, Emma 1 54 36 48 Abayon, Rene 1 55 73 49 Nadores, Cesar 1 56 72 50 Tanamor, Consolacion 1 57 42 51 Ibo, Concordia L. 1 58 38 52 Payno, Noli 1 60 66 53 Rendon, Rolando 1 61 69 54 Javier, Alicia 1 62 76 55 Sales, Elenita N. 1 63 79 56 Darca, Tessie B. 1 64 74 57 Ayroso, Ricardo C. 1 65 84 58 Abayon, Noel R. 1 67 63 59 Esposo, Jose D. 1 68 68 60 Manaois, Cesar 1 69 66 61 Vanzuela, Bernardita 1 70 61 62 Caspe, Jose 1 71 68 63 Roxas, Delia 1 72 69 64 Paguia, Rosalinda 1 73 81 65 De Claro, Mercedes F. 1 74 78 66 Furio, Beato G. 1 76 42 67 Fuentes, Lino G. 1 77 36 68 Asma, Victorino 1 78 55 69 Buldock, Solenia 1 79 79 70 Oba, Herminda R. 1 80 34 71 Sol, Dolores R. 1 81 35 72 Burce, Ma. Nelly 1 83 65 73 Echada, Romeo H. 1 84 74 74 Borja, Marilou C. 1 85 72 75 Rabino, Jose 1 86 63 76 Sevilla, Rosalinda 1 87 76 77 Velasco, Domingo 1 88 74 78 Cerdena, Elnor 1 90 70 79 Salva, Gerardo G. 1 91 77 80 Tenerife, Susan 1 92 47 81 Pacificar, Concepcion 1 93 72 82 Rodrigo, Wilson R. 1 94 79 83 Juliales, Florencio Jr. 1 95 99 84 Mensola, Levelina 1 97 70 85 Pastor, Zenaida 1 98 73 86 Requiero, Barriz 1 99 73 87 Prado, Manuel 1 100 71 88 Fernandez, Roldan 1 101 69 89 Sta. Cruz, Sonia A. 1 102 64 90 Mingoy, Ave 1 103 70 91 Lazaro, Edna S. 1 104 76 92 Soriano, Felisa S. 1 106 61 93 Quiapos, Reynaldo B. 1 107 77 94 Amarillo, Bermie 1 108 73 95 Nacario, Pilar 1 109 72 96 Trigo, Rommel L. 1 111 73 97 Pacificar, Ferdinand 1 112 72 98 Monterroyo, Emeterio 1 113 66 99 Mina, Dionita M. 1 114 71 100 Garcia, Jenneth A. 1 115 70 101 Sapian, Jose A. 1 116 64 102 Reblando, Christopher 1 118 71 103 Reblando, Lourdes 1 119 75 104 Mallorca, Emily E. 1 120 70 105 Cuartero, Wilmaflor 1 121 70 106 Boco, Estela V. 1 122 64 107 Bueno, Purita 1 123 65 108 Calaje, Marieta 1 124 67 109 Nantes, Araceli L. 1 125 67 110 Abellar, Casiana R. 1 127 64 111 Berbedel, Ester 1 128 61 112 Pradia, Ella Jeanice 1 129 36 113 Bo, Yolanda 1 130 71 114 Flores, Raul 1 131 70 115 Cojardo, Julieta M. 1 132 70 116 Manzano, Liberty 1 134 73 117 Santos, Ruby 1 135 73 118 Rapsing, Dante 1 136 79 119 Reyta, Melba 1 137 92 120 Luna, Erlinda 1 139 32 121 Reyta, Giovanni Jr. 1 140 67 122 Delfin, Basilio 1 141 69 123 Trigo, Lucas 1 142 63 124 Garcia, Constancia 1 143 57 125 Delfin, Nancy 1 144 60 126 Espinosa, Jessie 1 145 71 127 Fernandez, Amacita 1 146 64 128 Cabalse, Valeriano 1 147 61 129 Paulo, Pacita 1 149 69 130 Mejos, Samuel 1 150 71 131 Delfin, Alberto 1 151 69 132 Rapiz, Mylene S. 1 153 95 133 Caballero, Aiza Cyril 1 154 81 134 Mananquil, Purificacion 1 155 36 135 Bersabe, Lourdes 1 156 35 136 Rocha, Benedicto 1 157 79 137 Rocha, Victorio 1 158 90 138 Vina, Amy G. 1 160 94 139 Caballero, Wilfredo 1 161 94 140 Mappala, Vanessa T. 1 162 75 141 Murillo, Herminio 1 163 72 142 Calixtro, Roland 1 164 36 143 Racundo, Virginia 1 165 42 144 Reanzares, Imelda 1 166 35 145 Ibe, Lea 1 167 33 146 Sanoria, Rosita 2 1 47 147 Moreno, Briccio 2 2 69 148 Sapo, Ma. Joanna 2 3 59 149 Villanueva, Alma 2 4 61 150 Incognito, Florencio 2 5 52 151 Llarena, Rogelio L 2 6 69 152 Montero, Anitanida 2 7 73 153 Serenio, Celso P. 2 8 70 154 Jimenez, Leonardo P. 2 9 65 155 Bagadiong, Ma. Luisa 2 11 67 156 Parocha, Cesar B. 2 12 71 157 Antonio, Gloria 2 13 61 158 Martinez, Norma 2 14 81 159 Bernal, Marisa 2 15 85 160 Dela Cruz, Marcos 2 16 37 161 Serenio, Nerissa 2 17 29 162 Velasco, Violeta S. 2 19 66 163 Dypueco, Nora M. 2 20 72 164 Capua, Lea 2 21 61 165 Mascardo, Ranito 2 22 64 166 Elera, Carmelo 2 23 70 167 Navat, Rebecca A. 2 24 32 168 Tee, Anicia D. 2 151 30 169 Capanpan, Ricardo M. 2 25 64 170 Cervantes, Bernardo M. 2 26 76 171 Bugarin, Cornelia L. 2 28 70 172 Zapatero, Florenda 2 29 77 173 Malong, Herminigildo 2 30 42 174 Mendoza, Jorge 2 31 74 175 Tibi, Teresita Z. 2 32 72 176 Enverga, Feliciana 2 34 47 177 Magtibay, Gertrudes V. 2 35 94 178 Leonin, Ofelia C. 2 36 66 179 Egonio, Joseph L. 2 37 42 180 Rizate, Risalie L. 2 38 77 181 Singson, Francia A. 2 39 78 182 Sanoria, William 2 41 65 183 Santos, Antonina A. 2 42 71 184 Dela Cruz, Ligaya D. 2 43 35 185 Ambrocio, Remegio T. 2 44 31 186 Navarro, Ramon S. 2 45 61 187 Hicap, Violeta 2 46 72 188 Cabaero, Jovita 2 47 34 189 Celeste, Mirme Grace 2 48 37 190 Decena, Susan B. 2 50 63 191 Condong, Amador 2 51 77 192 Bautista, Manuel 2 52 74 193 Bataller, Bibiana 2 53 69 194 Santos, Teresita 2 54 72 195 Mangaoil, Rosita 2 55 75 196 Bruno, Edgar 2 56 72 197 Parungao, Maura 2 57 53 198 Valenzuela, Luzviminda 2 59 59 199 Velayo, Raquel 2 60 61 200 Niepes, Ceferino 2 61 26 201 Saligumba, Vicente 2 62 33 202 Sta. Ana, Josefina 2 63 28 203 Boncato, Dominador 2 64 49 204 Fernandez, Danilo C. 2 65 62 205 Velayo, Hilario F. 2 66 82 206 Babela, Marjorie 2 67 85 207 Cusi, Raul 2 68 52 208 Maddara, Thomas Alden 2 69 62 209 Salasibar, Nora 2 70 63 210 Aballe, Delia 2 71 74 211 Yu, Henry 2 73 83 212 Manansala, Lucerio I. 2 74 84 213 Viernes, Juvy 2 75 75 214 Fenequito, Divina O. 2 76 75 215 Arcellana, Estefanio Jr. 2 77 74 216 Asis, Gaspar A. 2 79 73 217 Funtinilla, Edwin 2 80 74 218 Santileces, Josephine 2 81 73 219 Espartero, Blas Jerry 2 82 53 220 Angala, Eugenio 2 83 72 221 Alon, Gina 2 84 69 222 Barnedo, Concepcion B. 2 86 59 223 Sulangon, Alicia 2 87 78 224 Hassan, Normina 2 88 68 225 Beraquit, Domingo A. 2 89 87 226 Lagmay, Antonio A. 2 90 80 227 Caande, Shirley P. 2 91 73 228 Beraquit, Lorna 2 92 81 229 Relano, Genoveva 2 93 70 230 Matullano, Amancio 2 94 60 231 Naranjo, Julian D. 2 96 83 232 Velchez, Ely 2 97 69 233 Beren, Gliceria 2 98 72 234 Naranjo, Cesar D. 2 99 101 235 Dela Cruz, Flordeliza 2 100 72 236 Vargas, Jaime 2 101 62 237 Tud, Alejandro T. 2 103 85 238 Magullado, Alicia M. 2 104 87 239 Dala, Purificacion 2 105 78 240 Ubalde, Edgar 2 106 68 241 Germedia, Romero 2 107 71 242 Flor Generosa 2 108 74 243 Gasga, Fe 2 110 76 244 Ubalde, Mateo 2 111 72 245 Sande, Desmond 2 112 68 246 Lucin, Gary 2 113 62 247 Aballe, Minerva 2 114 67 248 Unera, Lucina 2 115 80 249 Servillon, Paquito 2 117 68 250 Resurreccion, Romeo 2 118 79 251 Calibara, Mardario 2 119 91 252 Jose, Roberto 2 120 71 253 Baustista, Primitiva 2 121 66 254 Carino, Jimmy B. 2 122 70 255 Fernandez, Alfredo R. 2 124 68 256 Cambal, Consolacion L. 2 125 71 257 Silava, Dexter 2 126 73 258 Abing, Helena 2 127 63 259 Malubay, Sesinio 2 128 66 260 Tabarangao, Clemente 2 129 66 261 Fernandez, Rodolfo 2 130 65 262 Siera, Ernesto A. 2 131 75 263 Tacder, Virgie 2 133 66 264 Oltiveros, Myrna 2 134 72 265 Saligao, Avelina 2 135 72 266 Paulo, Larry 2 136 65 267 Paturara, Milagrina H. 2 137 59 268 Lustre, Alfredo 2 138 38 269 Lustre, Adoracion 2 140 97 270 Malinao, Loreta 2 141 67 271 Espaldon, Danilo F. 2 142 76 272 Baldoza, Lilibeth 2 143 67 273 Tusi, Rosalio 2 144 63 274 Ebio, Gerardo 2 145 72 275 Ballesca, Josebeth 2 147 61 276 Tusi, Juanito T. 2 148 75 277 Tutanes, Arsenio Jr. 2 149 85 278 Ballesca, Josephine C. 2 150 73 279 Campo, Roberto C. 3 1 41 280 Anda, Manuelito U. 3 2 15 281 Canega, Reynaldo B. 3 3 33 282 Sanoria, Dionisio 3 4 42 283 Bien, Corazon N. 3 5 59 284 Perez, Senen 3 6 37 285 Centeno, Corazon A. 3 7 42 286 Caymo, Allan 3 8 65 287 Maranga, Lydia 3 10 33 288 Abendanio, Rowena 3 11 28 289 Acedera, Leanea 3 12 34 290 Santelices, Karl Anthony 3 13 35 291 Mandalihan, Menina M. 3 14 63 292 Banu, Perpetua S. 3 15 61 293 Santos, Abelardo M. 3 16 72 294 Ma. Teresita T. Dauz 3 17 47 295 Gonzales, Ricardo 3 19 62 296 Adona, Julieta S. 3 20 72 297 Celeste, Remedios T. 3 21 85 298 Canada, Jocelyn O. 3 22 73 299 Zubiaga, Marcelino N. 3 23 74 300 Bayoca, Antonio I. 3 24 69 301 Arancillo, Mari Joy 3 26 75 302 Arancillo, Floripis 3 27 64 303 Castaneda, Juan 3 152 35 304 Sentelices, Martin O. 3 28 58 305 Mosende, Randy 3 29 57 306 Aspa, Artemia 3 153 38 307 Montero, Susan 3 30 33 308 Joves, Ofelia 3 31 63 309 Toyoken, Cynthia C. 3 33 72 310 Jose, Josephine 3 34 80 311 Suyat, Gloria J. 3 35 65 312 Carolino, Eugenio M. 3 36 63 313 Marbella, Gelita S. 3 37 72 314 Siena, Peter 3 38 63 315 Requerme, Emma 3 39 69 316 Conquez, Ligaya L. 3 40 76 317 Belgado, Nympha 3 42 59 318 Alonzo, Evelyn 3 43 74 319 Jalmasco, Roger L. 3 44 85 320 Jalmasco, Analyn 3 45 65 321 Juera, Virgilio 3 47 70 322 Pacit, Renato 3 48 75 323 Pena, Perpetua 3 49 68 324 Morillo, Fe 3 50 74 325 Santos, Benita 3 51 70 326 Padrigano, Jimmy 3 52 71 327 Dy, Ariel A. 3 53 63 328 Pradia, Norieta P. 3 54 34 329 Austria, Wilfredo 3 55 34 330 Buen, Susan 3 57 60 331 Morillo, Miriam 3 58 71 332 Pradia, Reymundo 3 59 36 333 Pradia, Lydia P. 3 60 33 334 Pradia, Silvestre 3 61 28 335 Olid, Editha P. 3 62 40 336 Dolotina, Isabelo T. 3 64 41 337 Tangalin, Warlito C. 3 65 69 338 Cuesta, Rodolfo 3 66 66 339 Diocson, Loreto M. 3 67 37 340 Daya, Dinia 3 68 63 341 Valiente, Rodolfo 3 69 60 342 Jose, Milagrina T. 3 71 57 343 Du, Allan 3 72 76 344 Bayon-on, Ernesto Z. 3 73 73 345 Merelos, Teresita T. 3 74 80 346 Acacio, Lilia R. 3 76 62 347 San Juan, Teresita 3 77 60 348 Esposa, Reynaldo A. 3 78 68 349 Estacio, Isabel R. 3 79 66 350 Judilla, Teresita 3 80 69 351 Amarillo, Normita 3 81 68 352 Manjares, Emmanuel 3 83 75 353 Palabao, Mark Rommel 3 84 67 354 Villapando, Zona 3 85 65 355 Abundo, Lea 3 86 60 356 Judilla, Francisca C. 3 87 70 357 Leopango, Minerva C. 3 88 66 358 Espinosa, Mary Jean 3 90 73 359 Flores, Angelina 3 91 76 360 Morillo, Maria G. 3 92 70 361 Escolano, Delia N. 3 93 69 362 Relente, Trinidad C. 3 94 77 363 Santos, Virginia 3 95 39 364 Santos, Lilia 3 155 36 365 Labayo, Jasmin 3 97 64 366 Burce, Marcelino B. 3 98 70 367 Burce, Demetrio 3 99 53 368 Queja, Luzviminda 3 100 70 369 Lelina, Zocimo B. 3 101 72 370 Calibara, Jerry 3 102 59 371 Bitos, Alfredo G. 3 103 69 372 Domingo, Luzviminda E. 3 104 78 373 Reyes, Gavino 3 106 61 374 Amon, Marcelo O. 3 107 60 375 Cortes, Leopoldo D. 3 108 78 376 Asis, Virginia B. 3 109 66 377 Almario, Josefina A. 3 111 62 378 Aringo, Nilo E. 3 112 72 379 Cannaoay, Anita 3 113 69 380 Bantiling, Herbert O. 3 114 68 381 Gobris, Gilbert 3 115 73 382 Josef, Jessie E. 3 116 67 383 Palabao, Ebenezer M. 3 117 61 384 Maulit, Milagros R. 3 118 36 385 Merelos, Archie Jay 3 120 68 386 Caneta, Inocencio C. 3 121 68 387 Niegas, Salvacion H. 3 122 82 388 Todoc, Aurelio B. 3 123 68 389 Aleman, Don 3 124 72 390 Centeno, Letecia P. 3 125 73 391 Trigo, Madelaine 3 127 69 392 Sureta, Ma. Lorna 3 128 64 393 Manulat, Rodrigo O. 3 129 79 394 Balicasmaya, Nemesio Jr. 3 130 63 395 Habla, Emerlita D. 3 132 30 396 Labasbas, Rosalio 3 133 38 397 Madriaga, Marissa N. 3 134 62 398 Madriaga, Rebecca N. 3 135 78 399 Tanalgo, Modesto Jr. 3 136 69 400 Gelsano, Jocelyn I. 3 137 60 401 Gelsano, Ma. Mildred 3 138 74 402 Rocio, Edwin T. 3 140 65 403 Reminal, Soledad 3 141 73 404 Rabino, Jessie 3 142 78 405 Perez, Armando 3 143 72 406 Francisco, Teresita 3 144 86 407 Calibara, Myla 3 145 34 408 Calibara, Kevin Angelo 3 147 26 409 Basco, Efren 3 148 117 410 Delos Reyes, Augusto 3 149 74 411 Dasmarinas, Zaida 3 150 71 412 Paras, Liza Delos Reyes 3 151 74 413 Inocelda, Rosario 3 154 41