BIR eyes tax exemptions on land sale for housing

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.