Publishes the Full Text of the Memorandum of Agreement among the Housing and Urban Development Coordinating Council (HUDCC), Bureau of Internal Revenue (BIR) and National Housing Authority (NHA)

July 21, 2017 REVENUE MEMORANDUM CIRCULAR NO. 058-17 SUBJECT : Publishes the Full Text of the Memorandum of Agreement among the Housing and Urban Development Coordinating Council (HUDCC), Bureau of Internal Revenue (BIR) and National Housing Authority (NHA) TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all internal revenue officials and employees, attached herewith as Annex "A" is the full text of the Memorandum of Agreement among the Housing and Urban Development Coordinating Council (HUDCC), Bureau of Internal Revenue (BIR) and National Housing Authority (NHA) relative to the processing and issuance of Certificate of Tax Exemption for transfers of raw land to NHA intended for socialized housing projects of the national government under Republic Act (RA) No. 7279, otherwise known as the "Urban Development and Housing Act of 1992." All concerned are hereby enjoined to be guided accordingly and give this circular as wide a publicity as possible. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ANNEX A Memorandum of Agreement KNOW ALL MEN AND WOMEN BY THESE PRESENTS: This Memorandum of Agreement (MOA), made and entered into this 3rd day of November 2016 at the Office of the Vice President, by and between: The HOUSING AND URBAN DEVELOPMENT COORDINATING COUNCIL , with office address at 9th Floor BDO Plaza, 8737 Paseo De Roxas Street, Makati City, herein represented by the Honorable Vice President and HUDCC Chairperson MARIA LEONOR G. ROBREDO and hereinafter referred to as "HUDCC"; -and- The BUREAU OF INTERNAL REVENUE , a government agency duly organized and existing under Philippine Law, with office address at BIR National Office Bldg., BIR Road, Diliman, Quezon City, herein represented by the Commissioner of Internal Revenue CAESAR R. DULAY and hereinafter referred to as "BIR"; -and- The NATIONAL HOUSING AUTHORITY , with office address at Quezon Memorial, Elliptical Road, Quezon City, herein represented by its Acting General Manager MARCELINO P. ESCALADA, JR. and hereinafter referred to as "NHA"; WITNESSETH: WHEREAS, the HUDCC serves as the oversight, overall coordinator, initiator and facilitator of all government policies, plans and programs for the housing sector; sets the overall direction and targets for the sector; and determines strategies, formulates appropriate policies, monitors, and evaluates the programs, projects and performance of the implementing shelter agencies; WHEREAS, the National Internal Revenue Code of 1997 (Tax Code), as amended, mandates the BIR to administer and execute all internal revenue tax laws; WHEREAS, the NHA is mandated to provide decent, adequate, and affordable housing to low-income families, ensure the provision of community facilities, utilities, and access to social services and economic opportunities; WHEREAS, the BIR has issued Revenue Regulations (RR) No. 11-97, prescribing the guidelines and procedures for the availment of the tax incentives by government-owned and controlled corporations, local government units, and private sector participating in socialized housing of the national government; WHEREAS, the BIR commits to facilitate and expedite the processing and issuance of Certificate of Tax Exemption for transfers of raw land to NHA intended for socialized housing projects of the national government under Republic Act (RA) No. 7279, otherwise known as, the "Urban Development and Housing Act of 1992," intended for the families affected by calamities, clearing of waterways, esteros, infrastructure projects of the governments and those living in danger areas; WHEREAS, this MOA is entered into by the parties to attain the said objective and to agree on certain policies for the availment of tax incentives; NOW THEREFORE, for and in consideration of the above premises and their mutual covenants herein set forth, the Parties have mutually agreed to enter into this Agreement under the following terms and conditions: I. The BIR shall: a) Prioritize and expedite the processing and issuance of the Certificate of Tax Exemption for transfers of raw land to NHA intended for socialized housing projects of the national government under RA No. 7279, intended for the families affected by calamities, clearing of waterways, esteros, infrastructure projects of the governments and those living in danger areas; b) Streamline the processing for the issuance of Certificate of Tax Exemption by reducing and/or eliminating unnecessary documentary requirements. Request for the issuance of the Certificate of Tax Exemption shall be processed directly at the Office of the Commissioner. II. The HUDCC shall: Assist the BIR in identifying and monitoring socialized housing projects under RA No. 7279 qualified for tax incentives, by submitting to the BIR a regularly updated master list of socialized housing projects of the national government. III. The NHA shall: a) Indorse the application of the contractor for the issuance of Certificate of Tax Exemption; b) Assist the BIR in the evaluation & verification of documentary requirements to be attached to the application; c) Provide list of authorized officers to certify records from NHA. IV. The BIR, HUDCC and NHA shall hold regular consultations to monitor the effectiveness of procedures, and to address remaining bottlenecks. V. The BIR, HUDCC and NHA shall separately issue guidelines and procedures in order to implement this MOA. IN WITNESS HEREOF, the parties have hereunto affixed their signatures on the date and place herein above-mentioned. For the HOUSING AND URBAN DEVELOPMENT COORDINATING COUNCIL (SGD.) MARIA LEONOR G. ROBREDO Vice President and Chairperson For the BUREAU OF INTERNAL REVENUE (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue For the NATIONAL HOUSING AUTHORITY (SGD.) MARCELO P. ESCALADA, JR. Acting General Manager WITNESSETH: (SGD.) ATTY. ANGEL R. OJASTRO III Secretary General HUDCC (SGD.) MARISSA O. CABREROS Assistant Commissioner BIR (SGD.) GRACE R. GUEVARRA OIC-Visayas Management Office NHA