BIR Ruling [UN-192-94]

June 29, 1994 BIR RULING [UN-192-94] National Housing Authority Quezon Memorial Elliptical Road Diliman, Quezon City Attention: Mr . Epifanio P . Recana OIC, Legal Department Gentlemen : This refers to your letter dated April 18, 1994 requesting in effect, a confirmation of your opinion that the conveyance of property by private individuals in your favor pursuant to the Order of the Court (RTC, Branch 20, Imus, Cavite) dated November 18, 1993 in Civil Cases Nos. 921-76, 922-76 and 926-76 entitled "National Housing Authority (NHA) vs. Iluminada Bautista, et al.", to be used in your Socialized Housing Projects is exempt from the payment of capital gains tax and documentary stamp tax under Sections 19 & 20 of R.A. 7279, otherwise known as the "Urban Development and Housing Act of 1992". Records disclosed that a property (raw land) located at Bo. Burol, Dasmarias, Cavite with an area of 3,600 square meters, covered by Transfer Certificate of Title No. T-299425 issued by the Register of Deeds of the Province of Cavite, and owned by Edgardo Bautista, et al., is the subject of the Compromise Agreement approved by the Regional Trial Court, Branch 20, Imus, Cavite dated November 18, 1993 (Civil Cases Nos. 921-76, 922-76 & 926-76," NHA vs. Iluminada Bautista, et al".) whereby the latter conveyed to the former the aforesaid property to be utilized and developed as component part of its Dasmarias Bagong Bayan Resettlement Project, a socialized housing project as resettlement site for marginal income families. cdtech In reply, please be informed that pursuant to Sections 19 & 20 of R.A. No. 7279, the pertinent portions of which read: "SEC. 19. Incentives for the National Housing Authority The National Housing Authority, being the primary government agency in charge of providing housing for the underprivileged and homeless, shall be exempted from the payment of all fees and charges of any kind, whether local or national, such as income and real taxes. All documents or contracts executed by and in favor of the National Housing Authority shall also be exempt from the payment of documentary stamp tax and registration fees, including fees required for the issuance of transfer certificates of titles. (Emphasis supplied) "SEC. 20. Incentives for Private Sector Participating in Socialized Housing To encourage greater private sector participation in socialized housing and further reduce the cost of housing units for the benefit of the underprivileged and homeless, the following incentives shall be extended to the private sector; xxx xxx xxx (d) Exemption from the payment of the following: (1) Project-related income taxes; (2) Capital gains tax on raw lands used for the project; xxx xxx xxx" the conveyance of the aforesaid property, covered by Transfer Certificate of Title No. 299425 in the name of Edgardo Bautista, et. al., in favor of the National Housing Authority by virtue of the aforesaid Compromise Agreement approved by the Regional Trial Court, Branch 20, Imus, Cavite in its Order dated November 19, 1993, supra is exempt from the payment of capital gains tax and documentary stamp tax (BIR Ruling 367-93 dated September 8, 1993). cdi Very truly yours, ALICIA P. CLEMENO Acting Assistant Commissioner (Legal Service)