National Housing Authority

February 4, 2009 BIR RULING [SH-(004) 070-09] R.A. No. 7279; SH(043) 260-2008 dtd. 10/30/08 National Housing Authority Quezon Memorial Elliptical Road Diliman, Quezon City Attention: Ma. Theresa L. Siat District Manager Pasig/Marikina/Manggahan, National Capital Region Gentlemen : This refers to the Memorandum dated January 18, 2006 of the Chief, Legal Division, BIR Revenue Region No. 7 (Quezon City), for the Revenue District Officer, RDO #46 (Cainta-Taytay), clarifying the issue on whether the sale of real property of the National Housing Authority (NHA) to Iglesia Ni Cristo (INC) is subject to withholding tax (WT) and documentary stamp tax (DST). In the said Memorandum, the Chief, Legal Division, opined that the transfer of the property of the NHA to INC for the use of the latter for the site of its church building and not for housing project in accordance with RA 7279 shall not be exempted from the payment of withholding tax, capital gains tax and documentary stamp tax. That in disagreement with the said opinion, NHA issued a certification to the effect that INC is one of the community facilities of the Manggahan Socialized Housing Project (MSHP) of the NHA and further stating that community facilities such as churches, centers, police stations and schools are part and components of a socialized housing project of the government besides circulations and open spaces. In reply, please be informed that inasmuch as the church (Iglesia Ni Cristo) is intended for beneficiaries of the Manggahan Socialized Housing Project, said Iglesia Ni Cristo church is but a part and component of the Socialized Housing Project, as the other facilities do, like the centers, police stations and schools. As such, it is exempt from the imposition of the corresponding taxes, pursuant to RA 7279. SCaEcD 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.) JAMES H. ROLDAN Assistant Commissioner Legal Service