________________________________________________________
Property firms developing ‘student-friendly’ condos
[ bworldonline.com ]
MORE REAL estate companies are developing residential condominiums
near educational institutions, as they see growing demand for quality
housing for students.
DMCI Homes, Inc. will be launching a P2.8-billion condominium near
the St. Scholastica’s College in Malate, Manila in the second half of
this year.
“May bago kaming format. Karamihan kasi ng ginagawa namin designed for the family, ngayon ito
designed for students (We have a new format. Most of what we do are
designed for the family, but now this is designed for students),” DMCI
Homes Chairman Isidro A. Consunji said during an Aug. 13 briefing.
DMCI Homes President Alfredo R. Austria said the new project will be launched within two to three months.
“This is a dormitory designed for family and students… Para siyang condominium na i-bebenta sa property buyers pero ang features niya ay sa
dormitory (It’s like a condominium that we sell to property buyers but
the features are like that of a dormitory). We’re developing at a lower
price point,” he said during the same briefing.
Mr. Austria said the Malate condominium will stand 30 storeys tall
with unit sizes starting at 24 square meters each and prices starting at
P3 million.
The new project is part of the P40 billion worth of projects DMCI Homes targets to launch this year.
The Consunji-led property company also plans to unveil a 40-storey
building in Matina, Davao City within the second half. The residential
condominium will be a joint venture partnership with the developer of
New City Commercial Corp. (NCCC) Mall.
Meanwhile, the property unit of GT Capital Holdings, Inc. also
launched the first tower of Quantum Residences along Taft Avenue, Manila
this month.
Federal Land, Inc.’s new project is located near several schools such
as the De La Salle University, De La Salle College of Saint Benilde,
St. Scholastica’s College, Philippine Women’s University, and Arellano
University.
“The dormitory is for sale. It’s used as a dormitory, but it’s
actually units for sale that’s designed for students. That will mostly
be studio types,” GT Capital President Carmelo Maria Luza Bautista told
reporters after a media briefing in Makati last Aug. 13.
Mr. Bautista said the company will launch another tower for Quantum
Residences during the second half of the year, noting that 35% of units
in the first tower were sold within a month after its launch.
Quantum Residences will consist of three towers with 35 floors each
standing on a single podium. The first five floors are the podium
levels, while the remaining 30 floors will house the residential units.
The entire project stands on a 5,960-sq.m. property.
Unit sizes range from 21.5 sq.m. for studio units, 30.5 sq.m. for a
one-bedroom unit with balcony, and 49 sq.m. for a two-bedroom unit.
Amenities in the Quantum Residences include a hobby room, fitness
gym, conference room, study lounge, function room, and game room. — Arra B. Francia
___________________________________
EO prescribes uniform real property tax rates for power projects
Published
By Myrna M. Velasco
A new Executive Order (EO) issued by President Rodrigo R. Duterte
renders a uniform assessment rate on real property taxes (RPT) to be
levied to power plant projects; while also condoning interest charges on
unsettled real property taxes of project developers.
EO 60, which was issued by Malacañang on July 25 this year,
effectively reduced the assessment rate level of real property taxes of
power projects to 15-percent of the fair market value of specified
property, machinery and equipment.
That was basically trimmed down from the 40 to 80-percent assessment
rates that most local government unit-hosts of power projects have opted
to apply in their calculation of RPT dues of the generation companies
(GenCos) and independent power producers (IPPs).
For more than two decades, the RPT assessment levels and settlements
had been that “P40 billion to P80 billion unresolved headache” of almost
all players in the power industry – and it is just being addressed this
time by the Duterte administration.
In the Duterte-sanctioned EO, it was likewise prescribed that the RPT
payments of power companies be allowed a 2.0-percent depreciation rate
per annum, and “less any amounts already paid by the IPPs.”
The EO further directed that “all interests on deficiency real
property tax liabilities are also hereby condoned and the concerned IPPs
are hereby relieved from payment thereof.”
The Palace order similarly stated that “all real property tax
payments made by the IPPs over and above the reduced amount shall be
applied to their real property tax liabilities for the succeeding
years.”
The EO thus stipulated that “all concerned departments, agencies and
instrumentalities of the government, including relevant government-owned
and controlled corporations (GOCCs) and LGUs are hereby ordered to
strictly comply with this Order.”
In the build-operate-transfer (BOT) deals with IPPs that have power
supply deals underwritten then by state-run National Power Corporation,
it was expressly provided that RPT payments shall be to its account or
its successor-firm Power Sector Assets and Liabilities Management
Corporation.
And while it was rendered under the Local Government Code that
GOCC-contracted IPPs be extended a special assessment rate of
10-percent, it had been manifest that many LGU-host communities had not
been adhering to that prescription.
Given the accumulation of such tax liabilities then, even the
national government fears that this will adversely affect the State’s
fiscal consolidation initiatives, hence, the Department of Finance (DOF)
batted for a uniform RPT assessment rates for power projects.
The EO chiefly acknowledged that “since a substantial portion of real
property taxes being charged have been contractually assumed by
NPC/PSALM and carry the full faith and credit of the national
government, the collection of the subject RPT by the LGUs concerned will
trigger massive direct liabilities on the part of such GOCCs, thereby
threatening their financial stability, the government’s fiscal
consolidation efforts, the stability of energy prices and may even
trigger further cross-defaults and significant economic losses across
all sectors.”
_____________________________________________
Tax bureau clarifies property valuation
By Elijah Joseph C. Tubayan
Reporter
THE BUREAU of Internal Revenue (BIR) recently amended rules on the
valuation of real property gifts for the computation of the donor’s tax
in order to ease compliance.
Revenue Regulation (RR) 17-2018, signed by Finance Secretary Carlos
G. Dominguez III on July 24 but published last week, said that “the
valuation of gifts in the form of property shall follow the rules set
forth in Section 5,” from Section 6 previously, provided that “the
reckoning point for valuation shall be the date when the donation is
made.”
This means that payment of tax on such properties are now based on
gross estate value according to their fair market value at the time of
the decedent’s death.
Previously under RR 12-2018 — the consolidated implementing rules and
regulations on imposing estate and donors taxes — the value of such
property was determined by deducting claims against the estate; claims
of the deceased against insolvent persons; unpaid mortgages, taxes and
casualty losses; property previously taxed; transfers for public use;
current fair market value of the decedent’s family home; amount received
by heirs and the net share of the surviving spouse in the conjugal
partnership or community property.
BIR Deputy Commissioner Marissa O. Cabreros said in a mobile phone
message yesterday that the new regulation “provided ease in compliance.”
Sought for comment, Tax Management Association of the Philippines
President Raymund S. Gallardo said the previous rule had “nothing to do
with valuation.”
“Under RR12 -2018, valuation of properties subject to Donor’s Tax
made reference to Sec. 6 which is about the computation of the net
estate, which has nothing to do with valuation. Sec. 5 of RR 12-2018 is
about valuation of properties included in the gross estate of a
decedent,” Mr. Gallardo explained in a mobile phone message over the
weekend.
“Valuation of properties subject of gratuitous transfers such as
donation and inheritance follow the same principle of valuation, such
that the valuation of real properties in computing the estate or donor’s
tax is the higher of the fair market value (FMV) as determined by the
Commissioner (which is normally the zonal value) or the FMV as shown in
the values fixed by provincial or city assessors at the time of death of
the decedent or date when the gift was made,” he added.
Republic Act No 10963, or the Tax Reform for Acceleration and
Inclusion law, simplified estate and donor’s taxes at fixed rate of six
percent.
“For the purposes of prescribing real property values, the
Commissioner is authorized to divide the Philippines into different
zones or areas shall, upon consultation with competent appraisers, both
from the private and public sectors, determine the fair market value of
real properties located in each zone or area,” read the regulation.
______________________________________________
Revised schedule of zonal values of real properties. 2018/2017
Revised schedule of zonal values of real properties.
Please click on link ZONAL VALUES above to go to BIR ZONAL VALUES
___________________________________________________________
Revised schedule of zonal values of real properties within Province of Benguet
Revised schedule of zonal values of real properties.
---------------------------------------------------------------------------------------------------
Subscribe to:
Posts (Atom)
KNOWING YOUR BIR REGULATIONS AND ISSUANCESRevenue 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.
