Requests for Tax Exemption of Private Contractors for Socialized Housing Projects Under Section 20 of Republic Act (R.A.) No. 7279 or the "Urban Development and Housing Act of 1992"
Revenue Memorandum Circular No. 032-12 clarifies tax exemptions for private contractors engaged in socialized housing projects under Section 20 of Republic Act No. 7279, the Urban Development and Housing Act of 1992. It specifies that these exemptions, including relief from income and value-added taxes (VAT), are strictly applicable to the construction and development of housing units for underprivileged and homeless citizens. The circular also emphasizes that projects such as classrooms, school buildings, and livelihood centers do not qualify for these tax incentives. Stakeholders are urged to adhere to these guidelines and to disseminate the information widely.
Quick Answers
- What is Requests for Tax Exemption of Private Contractors for Socialized Housing Projects Under Section 20 of Republic Act (R.A.) No. 7279 or the "Urban Development and Housing Act of 1992" about?
- Revenue Memorandum Circular No. 032-12 clarifies tax exemptions for private contractors engaged in socialized housing projects under Section 20 of Republic Act No. 7279, the Urban Development and Housing Act of 1992. It specifies that these exemptions, including relief from income and value-added taxes (VAT), are strictly applicable to the construction and development of housing units for underprivileged and homeless citizens. The circular also emphasizes that projects such as classrooms, school buildings, and livelihood centers do not qualify for these tax incentives. Stakeholders are urged to adhere to these guidelines and to disseminate the information widely.
- What type of law is Revenue Memorandum Circular No. 032-12?
- Requests for Tax Exemption of Private Contractors for Socialized Housing Projects Under Section 20 of Republic Act (R.A.) No. 7279 or the "Urban Development and Housing Act of 1992" (Revenue Memorandum Circular No. 032-12) is a Philippine Other Rules and Procedures enacted by the Congress of the Philippines.
- When was Requests for Tax Exemption of Private Contractors for Socialized Housing Projects Under Section 20 of Republic Act (R.A.) No. 7279 or the "Urban Development and Housing Act of 1992" enacted?
- Requests for Tax Exemption of Private Contractors for Socialized Housing Projects Under Section 20 of Republic Act (R.A.) No. 7279 or the "Urban Development and Housing Act of 1992" (Revenue Memorandum Circular No. 032-12) was enacted on Jul 16, 2012.
- What is the citation for Requests for Tax Exemption of Private Contractors for Socialized Housing Projects Under Section 20 of Republic Act (R.A.) No. 7279 or the "Urban Development and Housing Act of 1992"?
- Requests for Tax Exemption of Private Contractors for Socialized Housing Projects Under Section 20 of Republic Act (R.A.) No. 7279 or the "Urban Development and Housing Act of 1992", Revenue Memorandum Circular No. 032-12, Jul 16, 2012 (Philippines)
Law Information
- Reference Number
- Revenue Memorandum Circular No. 032-12
- Date Enacted
- Category
- Other Rules and Procedures
- Subcategory
- Taxation
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
July 16, 2012
REVENUE MEMORANDUM CIRCULAR NO. 032-12
| SUBJECT | : | Requests for Tax Exemption of Private Contractors for Socialized Housing Projects Under Section 20 of Republic Act (R.A.) No. 7279 or the "Urban Development and Housing Act of 1992" |
| TO | : | All Internal Revenue Officials, Employees and Others Concerned |
This Circular is issued to clarify the incentives of the private sector participating in socialized housing under Section 20 of Republic Act (R.A.) No. 7279 or the "Urban Development and Housing Act of 1992", particularly the exemption from project-related income and value-added taxes (VAT).
Section 3 (r) of R.A. 7279 defines "socialized housing" as follows:
"(r) "Socialized housing" refers to housing programs and projects covering houses and lots or homelots only undertaken by the Government or the private sector for the underprivileged and homeless citizens which shall include sites and services development, long-term financing, liberalized terms on interest payments, and such other benefits in accordance with the provisions of this Act;" (Underscoring n supplied)
The definition of socialized housing was reiterated in Revenue Regulations (RR) No. 11-97 and in RR No. 17-01.
From the foregoing, the tax incentive provision, granting exemption from project-related taxes and VAT to project contractors/developers, is limited to the construction and development of houses and lots or homelots only with a view to reduce the cost of housing units for the benefit of the underprivileged and homeless and to encourage greater private sector participation in socialized housing. DAEaTS
Therefore, the development and/or construction of classrooms, school buildings, multi-purpose halls/covered courts, and livelihood centers falls outside the definition of the term "socialized housing" and cannot qualify for the tax incentives granted under Section 20 of R.A. No. 7279.
All concerned are hereby enjoined to be guided accordingly and to give this Circular as wide publicity as possible.
(SGD.) KIM S. JACINTO-HENARESCommissioner of Internal Revenue
ftp://ftp.bir.gov.ph/webadmin1/pdf/64506RMC%20No%2032-2012.pdf
n Note from the Publisher: Copied verbatim from the official copy.
Cite This Law
Requests for Tax Exemption of Private Contractors for Socialized Housing Projects Under Section 20 of Republic Act (R.A.) No. 7279 or the "Urban Development and Housing Act of 1992", Revenue Memorandum Circular No. 032-12, Jul 16, 2012 (Philippines)
Requests for Tax Exemption of Private Contractors for Socialized Housing Projects Under Section 20 of Republic Act (R.A.) No. 7279 or the "Urban Development and Housing Act of 1992", Revenue Memorandum Circular No. 032-12 (Phil. 2012)
Related Laws
- Rules and Regulations to Implement Section 18 of RA 7279 or Otherwise Known as the Urban Development and Housing Act of 1992HLURB Administrative Order No. 05-92 • Jul 14, 1992 • Other Rules and Procedures
- Guidelines Providing for Incentives and Uniform Procedures for Developers Complying with Section 18 of Republic Act No. 7279, or the Urban Development and Housing Act of 1992, to Benefit Areas Affected by CalamitiesHLURB Memorandum Circular No. 001-14 • Feb 12, 2014 • Other Rules and Procedures
- Resolution No. R-843, s. 2009 Re: Period for the Utilization of Existing Inventories of Socialized Housing Units as Advanced CreditHLURB Administrative Order No. 11-09 • Sep 10, 2009 • Other Rules and Procedures
- Revised Implementing Rules and Regulations to Govern Section 18 of Republic Act No. 7279HLURB Board Resolution No. 888-12 • May 23, 2012 • Other Rules and Procedures
- Guidelines for the Accreditation of Developers of Socialized Housing ProjectsHLURB Memorandum Circular No. 06-13 • Jan 2, 2013 • Other Rules and Procedures
- Revised IRR to Govern Sections 3, 18 and 20 of Republic Act No. 7279, as Amended by Republic Act No. 10884HLURB Board Resolution No. 965-17 • Dec 7, 2017 • Other Rules and Procedures
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