November 17, 1993

BIR RULING NO. 440-93

TRANSFER OF PROPERTY BY HOMEOWNERS ASSN. TO ITS

MEMBERS NOT SUBJECT TO DONOR'S TAX

50 (b) 398-93 440-93

Christ the King Center

CCF Homeowners Association, Inc.
Christ the King Parian Rectory
Cadlan, Pili, Camarines Sur
Attention: Fr. Renato Y . Ruelos, C . M .
Project Director

This refers to your letter dated August 10, 1993 in effect requesting for a ruling
that the transfer of property by the Christ the King Center CCF Homeowners
Association, Inc. to its members be exempt from donor's tax in accordance with the
Socialized Housing Program and pursuant to Section 20(d)(5) of R.A. 7279 which
was approved on March 24, 1992 and published in the March 28, 1992 issue of the
Philippine Times Journal and Malaya, newspapers of general circulation. LLjur

It appears that Christ the King Center CCF Homeowners Association, Inc., a
non-stock, non-profit corporation duly registered with the Securities and Exchange
Commission received aid from the Christian Children's Fund; that it bought forty
thousand (40,000) square meters of raw land in Cadlan, Pili, Camarines Sur from the
spouses Delfin J. Rodriguez and Ester L. Rodriguez covered by Transfer Certificate of
Title No. 14543 issued by the Register of Deeds of Camarines Sur; that the
aforementioned lot was subsequently subdivided and raffled among the members who
now want to have their shares titled; and that the Municipality of Pili, Camarines Sur,
issued a certification that the said lot was donated to 247 squatter families for
socialized housing purposes.

In reply, please be informed that pursuant to Section 20 of R.A. No. 7279,

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 pertinent portion of which reads:

"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: cd i

xxx xxx xxx

(d) Exemption from the payment of the following:

xxx xxx xxx

(5) Donor's tax for lands certified by the local government units to
have been donated for socialized housing purposes.

xxx xxx xxx

the association which donates to its underprivileged and homeless members property
certified to by the local government unit concerned to be used for socialized housing
project shall be exempt from the payment of the donor's tax (Revenue Regulations No.
9-93). Upon issuance of this letter of exemption, and registration of the document of
donation, a lien upon the Certificate of Title of the lands to be issued in the name of
the members shall be caused to be annotated by the Register of Deeds having
jurisdiction over the property, to the effect, that the said property shall be used for
socialized housing project pursuant to R.A. No. 7279.

However, the deed of donation shall be subject to the documentary stamp tax
of P3.00 imposed under Section 188 of the Tax Code, as amended. cdpr

LIWAYWAY VINZONS-CHATO
Commissioner of Internal Revenue

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