8box Solutions Inc.


Contact Number: 09369340340
Email: sales@8box.solutions

REVENUE REGULATIONS NO. 17-2001 issued November 14, 2001 implements the provisions on Community Mortgage Program (CMP) under Republic Act No. 7279, otherwise known as the “Urban Development and Housing Act of 1992”. Properties sold under the CMP shall be exempt from the Capital Gains Tax or ordinary Income Tax, and consequently from the Creditable (expanded) Withholding Tax (CWT), whether sold by an individual, estate or trust, or by a corporation. However, the Documentary Stamp Tax (DST) shall be paid on every sale of property under the CMP, based on the higher of the actual consideration of sale stated in the document or of the fair market value. When one of the contracting parties is the government, the DST shall be based on the actual consideration paid for the real property. The certification issued by the President of the National Home Mortgage Finance Corporation (NHMFC) shall be sufficient basis for the BIR to exempt the transfer or conveyance from the Capital Gains Tax or Income Tax, and consequently from the CWT, if any. Such certification shall include the following documents as integral parts thereof: a) Certified Duplicate Original of the Deed of Sale to the Community Association; b) Certified True Copy of the Articles of Incorporation of the Community Association; c) Masterlist of Qualified Beneficiaries; d) Certified True Copy of the TCT/OCT and Latest Tax Declaration of the Property/ies Sold to the Community Association; and e) Location Plan of the Lot Sold to the Community Association. The concerned Revenue District Office shall issue the corresponding Certificate Authorizing Registration and/or Tax Clearance within five (5) days from compliance with the requirements provided in the Regulations.