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BIR eyes tax exemptions on land sale for housing

By Mary Grace Padin (The Philippine Star) | Updated March 12, 2017 - 12:00am


BIR commissioner Caesar Dulay and SHFC president Ma. Ana Oliveros signed an agreement that seeks to ease the processing of the capital gains tax exemption for the transfer of raw lands intended for government socialized housing from a landowner to a community or homeowners association. File photo

MANILA, Philippines -  The Bureau of Internal Revenue (BIR) is working with the Socialized Housing Finance Corp. (SHFC) to facilitate the processing of tax exemptions for the government’s socialized housing projects.

BIR commissioner Caesar Dulay and SHFC president Ma. Ana Oliveros signed an agreement that seeks to ease the processing of the capital gains tax exemption for the transfer of raw lands intended for government socialized housing from a landowner to a community or homeowners association.

 The tax exemption is compliant with the provisions of the Community Mortgage Program under Republic Act 7279, also known as the Urban Development and and Housing Act of 1992.

 Under the agreement, the BIR will streamline, facilitate and prioritize the processing and issuance of the BIR certificate of tax exemption for the transfer of raw lands.

The BIR shall also provide the corresponding assessment for the documentary tax stamps of the CMP projects.

SHFC, for its part, will endorse the community or homeowner association tax exemption application for CMP projects to the BIR and assist in the evaluation, verification and certification of documentary requirements through its authorized officers.

 Both parties also agreed to hold regular consultations, monitor the effectiveness of procedures and address possible bottlenecks in the processing of the tax exemption.


 Oliveros said the MOA signing was timely as March is the Women’s and Urban Development Housing Act Month.
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KNOWING YOUR BIR REGULATIONS AND ISSUANCES

Revenue Regulations (RRs)
are issuances signed by the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, that specify, prescribe or define rules and regulations for the effective enforcement of the provisions of the National Internal Revenue Code (NIRC) and related statutes

Revenue Memorandum Orders (RMOs) are issuances that provide directives or instructions; prescribe guidelines; and outline processes, operations, activities, workflows, methods and procedures necessary in the implementation of stated policies, goals, objectives, plans and programs of the Bureau in all areas of operations, except auditing.

Revenue Memorandum Rulings (RMRs) are rulings, opinions and interpretations of the Commissioner of Internal Revenue with respect to the provisions of the Tax Code and other tax laws, as applied to a specific set of facts, with or without established precedents, and which the Commissioner may issue from time to time for the purpose of providing taxpayers guidance on the tax consequences in specific situations. BIR Rulings, therefore, cannot contravene duly issued RMRs; otherwise, the Rulings are null and void ab initio

Revenue Memorandum Circular (RMCs) are issuances that publish pertinent and applicable portions, as well as amplifications, of laws, rules, regulations and precedents issued by the BIR and other agencies/offices.

Revenue Bulletins (RB) refer to periodic issuances, notices and official announcements of the Commissioner of Internal Revenue that consolidate the Bureau of Internal Revenue's position on certain specific issues of law or administration in relation to the provisions of the Tax Code, relevant tax laws and other issuances for the guidance of the public.

BIR Rulings are official position of the Bureau to queries raised by taxpayers and other stakeholders relative to clarification and interpretation of tax laws.