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RMO No. 12-2017: Prescribes the guidelines and procedure to streamline the process and issuance of Certificate of Tax Exemption (CTE) and Electronic Certificate Authorizing Registration (eCAR) for transfers of raw lands to community/ homeowners associations for socialized housing projects under RA No. 7279 (Urban Development and Housing Act of 1992)

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Summary

RMO No. 12-2017 prescribes guidelines to streamline issuing the Certificate of Tax Exemption (CTE) and Electronic Certificate Authorizing Registration (eCAR) for transfers of raw lands to community/homeowners associations for socialized housing projects under RA No. 7279.

Key points

  1. Where to file. Applications for the CTE are filed directly with the Office of the Commissioner. None is processed until all documentary requirements are complied with.
  2. Required documents. These include the original Certification of the Social Housing Finance Corporation President that the property is a Community Mortgage Program (CMP) Project, the Deed of Sale, the Master List of Beneficiaries, the title and latest Tax Declaration, and an Extrajudicial Settlement of Estate with proof of tax payment if the title is in the name of a deceased landowner. The Deed of Sale, Master List, and title with Tax Declaration are submitted as certified true copies.
  3. eCAR issuance. The Revenue District Officer processes, approves and issues the eCAR within five (5) working days from submission of the CTE. The CTE is a sufficient basis, and no other documents are required from the taxpayer or landowner.
  4. Contents of the eCAR. The eCAR states that the raw land is intended for a CMP under RA No. 7279. A lien on the title is annotated by the Register of Deeds to show that the land is applied to a socialized housing project.
  5. Post-audit. The BIR may at any time conduct a post-audit evaluation and verification on whether the raw land is actually covered under the CMP.

Who is affected

  • Community/homeowners associations
  • Landowners transferring raw lands for socialized housing projects

Deadlines and effectivity

  • eCAR issued within five (5) working days from submission of the CTE

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Related issuances

CitesRR No. 17-2001

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.