May 27, 2009
BIR RULING [SH-(047) 352-09]
RA 7279; RMC 42-01; S20-024-06
Geospecialist, Inc.
No. 168 P. Faustino Street
Punturin, Valenzuela City
Attention: Ms. Flordeliza A. Uy
President
Gentlemen :
This refers to your letter dated May 15, 2009 requesting for a ruling on the tax consequence on the construction by Geospecialist, Inc. of housing units of the Northville 1-B Relocation Site, in line with the socialized housing program of the National Housing Authority (NHA), pursuant to Republic Act (R.A.) No. 7279, otherwise known as "Urban Development and Housing Act of 1992".
The facts as represented are as follows:
Pursuant to Executive Order No. 90 dated December 17, 1986, the NHA was mandated as the sole housing production agency to meet the housing needs of the low and marginal income families in the urban areas. In line with its mandate, the NHA was tasked in the relocation and resettlement of the families affected by the NLEX-PHASE 2 C-5, Northern Link Project of the North Luzon Railways Corp. (NLRC).
Geospecialist, Inc., a domestic corporation, has offered its services to the Northville 1-B Homeowners Association, Inc. (the "Association")...
