June 19, 2002
REGIONAL REVENUE MEMORANDUM CIRCULAR NO. 02-02 *
| TO | : | All Internal Revenue Officers and Others Concerned |
| SUBJECT | : | Condominium Corporations Are Not Exempt from Corporate Income Tax Under Section 30 of The Code, Hence, Subject to Income Tax; Sale of Service, Also Subject to 10% VAT |
SECTION 1. Scope. — Some of our revenue officers have verbally consulted the undersigned whether or not a "condominium corporation" may be treated exempt from corporate income tax under Section 30, NIRC of 1997 and, also, whether its sale of service is subject to the value added tax under Section 108 of the said Code.
SECTION 2. A Condominium Corporation is Not a Civic League for the Promotion of Social Welfare; Not Exempt from Corporate Income Tax. — For the information and guidance of all concerned, a condominium corporation has been held not entitled to exemption from corporate income tax. Its claim for exemption from corporate income tax, allegedly as a "Civic league or organization not organized for profit but operated exclusively for the promotion of social welfare," even if...
