Summary

RR No. 17-2001 implements the Community Mortgage Program (CMP) provisions of Republic Act No. 7279, the Urban Development and Housing Act of 1992.

Exemptions. Properties sold under the CMP are exempt from the Capital Gains Tax or ordinary Income Tax, and so from Creditable (expanded) Withholding Tax (CWT). This applies whether the seller is an individual, estate, trust or corporation.
Documentary Stamp Tax still due. DST is paid on every CMP sale, based on the higher of the actual consideration stated in the document or the fair market value. If the government is one of the contracting parties, DST is based on the actual consideration paid for the real property.
NHMFC certification. The certification of the President of the National Home Mortgage Finance Corporation (NHMFC) is enough basis for the BIR to exempt the transfer from Capital Gains Tax or Income Tax and CWT. It must include the Certified Duplicate Original of the Deed of Sale to the Community Association, the Community Association’s Articles of Incorporation, and the Masterlist of Qualified Beneficiaries. It must also include the TCT/OCT and latest Tax Declaration of the properties sold, and the Location Plan of the lot sold.
CAR or Tax Clearance. The concerned Revenue District Office issues the Certificate Authorizing Registration and/or Tax Clearance within five (5) days from compliance with the requirements in the Regulations.

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

RR No. 17-2001: Implements the provisions on Community Mortgage Program under Republic Act No. 7279, otherwise known as the “Urban Development and Housing Act of 1992”