October 9, 2009
BIR RULING [SH-(095) 632-09]
20 (d) RA 7279; S-20-020-2007
National Housing Authority
Quezon Memorial Elliptical Road
Diliman, Quezon City
Attention: Ms. Lorna M. Seraspe
Officer-in-Charge
Visayas Management Office
Gentlemen :
This refers to your letter dated October 5, 2009 requesting on behalf of your contractor, ISH Construction, Inc., for exemption from project-related income taxes, expanded withholding tax and value-added tax (VAT) pursuant to the provisions of Republic Act (RA) No. 7279, otherwise known as the "Urban Development and Housing Act of 1992".
It is represented that a Contract for the Land Development of the San Isidro Resettlement Project was executed between the National Housing Authority and ISH Construction, Inc., as the contractor; that the Land Development of the San Isidro Resettlement Project, located in Barangay San Isidro, Jaro, Iloilo City involves the following works: survey works, general roadworks, drainage works and water supplies; and that the Land Development of the San Isidro Resettlement Project was certified by the National Housing Authority as a socialized housing project.
In reply, please be informed that pertinent portion of Section 20 of RA No. 7279 reads:
"Sec. 20....
