January 7, 2010
BIR RULING [DA-(JV-001) 002-10]
22 (B); DA-373-2008; DA-247-2001; DA 262-2001
Ms. Eufrocina B. Tarobal, CPA
20 Pinaglabanan Extension, San Juan City
Madam :
This refers to your letter dated August 18, 2009 requesting for confirmation of your opinion that:
1. The Joint Venture Agreement (JVA), copy of which will be annotated at the back of the title to the PROPERTY, executed by Moldex Realty, Inc., (hereinafter referred to as the "DEVELOPER") with PURIFICACION MANALON, widow of deceased Rogelio Manalon and EDGARDO MANALON, married to Natalie Manalon, both of legal age, Filipino citizens and with common residence and postal address at Loma de Gato, Meycauayan, Bulacan, collectively referred to herein as the OWNERS, does not give rise to a taxable joint venture within the meaning of Section 22 (B) of the Tax Code,as amended. The JVA is subject only to the documentary stamp tax of P15.00 imposed on the notarial acknowledgment of the JVA under Section 188 of the Tax Code,as amended.
2. The allocation of the saleable lots from the PROJECT to the DEVELOPER commensurate to and in consideration...
