Summary
RMC No. 65-2012 clarifies the taxability of association dues, membership fees and other assessments or charges collected by condominium corporations from members and tenants.
Key points
- Nature of the collections. For tax purposes, these amounts are income payments or compensation for the beneficial services the corporation provides to its members and tenants.
- Taxes that apply. The corporation’s gross receipts, including dues, fees and other charges, are subject to VAT and Income Tax. Income payments made to it are subject to applicable withholding taxes under existing regulations.
Who is affected
- Condominium corporations
- Members and tenants of condominium corporations
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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