BIR Ruling [UN-021-96]

1996 BIR RULING [UN-021-96] Lolita Heights Realty Development Corporation 81 P. Burgos Street Tacloban City Attention: Ms . Lolita O . Chu Treasurer Gentlemen : This refers to your letter dated January 8, 1995 requesting for a ruling that the sale of house and lot packages by the Lolita Heights Realty Development Corporation located in the Apitong Ville, Barangay Apitong, Tacloban City, under the socialized housing project, are exempt from the 1.5% creditable expanded withholding tax. It is represented that the Apitong Ville, located in Barangay Apitong, Tacloban City is a socialized housing project owned and developed by the Lolita Heights Realty Corporation; that the corporation is the owner of the said lots (raw lands) used for the socialized housing project; that the Apitong Ville in Barangay Apitong, Tacloban City is listed as one of the locations for the socialized housing projects of the government; that the corporation possessed a License To Sell issued by the Housing and Land Use Regulatory Board (HLURB); and that the house and lot packages in the socialized housing project to be sold at a price of not more than P150,000.00 per house and lot package, are now the subject of the sale and transfer to individual purchasers-beneficiaries of the packages, the purchasers-beneficiaries are identified by the HLURB as qualified beneficiaries for the socialized housing program of the government. In reply, please be informed that Section 3(b)(1) of Revenue Regulations No. 12-94, dated June 27, 1994, amending Revenue Regulations No. 6-85, provides, viz: cdtech "SEC. 3. Section 4 of Revenue Regulations No. 6-85 is hereby amended to read as follows: 'SEC. 4. Exemption from Withholding . The withholding of tax prescribed in these regulations shall not apply to income payments in the following cases: '(a) . . . '(b) Income payments to person enjoying exemption from payment of income taxes pursuant to the provisions of any law, general or special, such as but not limited to the following: '1. Sales of real property by a corporation which is registered with and certified by the Housing and Land Use Regulatory Board (HLURB) as engaged in socialized housing projects pursuant to Republic Act No. 7279 and its implementing regulations and whereby the selling price of the house and lot or only the lot does not exceed P150,000.00 or at such adjusted amount of selling price for socialized housing as may later be determined and adopted by the HLURB, pursuant to the aforesaid law; xxx xxx xxx" Such being the case, since the Lolita Heights Realty Development Corporation is registered with and certified to as engaged in socialized housing projects under Republic Act No. 7279 by the HLURB, and the selling price of the house and lot packages does not exceed P150,000.00 per package, it is exempt from the 1.5% creditable expanded withholding tax on the sale of the house and lot packages in the Apitong Ville socialized housing projects located in Barangay Apitong, Tacloban City. (BIR Ruling No. 132-94 dated August 31, 1994) This ruling shall serve as an authority for the Revenue District Officer of Revenue District No. 88, Tacloban City to issue the corresponding Certificate Authorizing Registration (CAR) on said transactions. cdt This ruling is issued on the basis of the foregoing representations. 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, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)