August 24, 2009
BIR RULING [SH-(078) 518-09]
27 & 196; DA-032-01; SH(003) 020-2008
Poyohon Neighborhood Homeowners Association Inc.
Purok 3 & 6, Port Poyohon, Barangay 17
Butuan City
Attention: Mr. Moises R. Calope
President
Gentlemen :
This refers to your letter dated May 8, 2009 requesting exemption from the payment of capital gains tax on the individualization/subdivision and distribution to the concerned members-beneficiaries, the actual property-owners, of the eleven (11) parcels of land registered in the name of Poyohon Neighborhood Homeowners Association, Inc. (PNHAI), an organized community availing the Community Mortgage Program (CMP) with the City Government of Butuan as Project Originator and financed by the Social Housing Finance Corporation (SHFC), a subsidiary of the National Home Mortgage and Finance Corporation (NHFMC).
It is represented that PNHAI is a homeowners association duly organized and registered with the Home Insurance and Guaranty Corporation under Registration No. 10-346 dated August 18, 1992; that PNHAI members availed of a housing loan through the Community Mortgage Program of the City Government of Butuan in acquiring eleven (11) parcels of land to be eventually subdivided to them (the members-beneficiaries);...
