REVENUE MEMORANDUM ORDER NO. 12-2017 issued on May 16, 2017 prescribes
the guidelines and procedures to streamline the process and issuance of Certificate of
Tax Exemption (CTE) and Electronic Certificate Authorizing Registration (eCAR) for
transfers of raw lands to community/homeowners associations for socialized housing
projects pursuant to Republic Act (RA) No. 7279, otherwise known as the “Urban
Development and Housing Act of 1992”.
The application for the issuance of CTE shall be filed directly with the Office of the
Commissioner. No application shall be processed unless the following documentary
requirements are fully complied with by the requesting party:
a. Original Certification signed by the President of the Social Housing Finance
Corporation that the subject property qualifies and is actually a Community
Mortgage Program (CMP) Project. Such Certification shall be sufficient
guarantee of the validity, authenticity and due diligence in the review of CMP
Project loan application of the Homeowners Association;
b. Certified true copy of the Deed of Sale executed by the landowner in favor of
the Community/Homeowners Association;
c. Certified true copy of the Master List of Beneficiaries;
d. Certified true copy of the Transfer Certificate of Title/Original Certificate of Title
and latest Tax Declaration of the property; and
e. Extrajudicial Settlement of Estate, in case the title of the property is still in the
name of a deceased landowner and evidence of payment of appropriate taxes.
The Revenue District Officer (RDO) concerned shall process, approve and issue
the necessary eCAR within five (5) working days from the date of submission of the CTE.
The CTE shall be a sufficient basis for the RDO concerned to issue the eCAR and no
other documents shall be required from the taxpayer/landowner requesting for the eCAR.
The eCAR shall particularly state that the raw land is intended for a CMP pursuant
to RA No. 7279, with a lien on the title of the land annotated by the Register of Deeds
having jurisdiction over the properties, to the effect that the same is to be applied or is
being applied to socialized housing project pursuant to RA No. 7279.
The BIR may, at anytime, conduct a post-audit evaluation and verification on
whether or not the raw land is actually covered under the CMP.