LA TRINIDAD, BENGUET – The Bureau of Internal Revenue issued amendments on real property transactions exempt from the value-added tax (VAT).
Revenue District Officer Joaquin Libardo, Jr. said these amendments were issued for implementation this year under Revenue Regulations No. 1-2005 issued December 28, 2004.
In a Kapihan sa Benguet forum held March 16, 2005 at Jack’s Restaurant, Revenue Officer I Rohannie Disangcopan discussed the details of the amendment.
The recent amendment indicates the revisions on sale of real property tax utilized for low-cost housing, sale of real property tax utilized for socialized housing, sale by real estate dealers and/or lessors of house and lot and other residential dwellings, sale or lease of goods or properties of the performance of services other than transactions mentioned, lease of residential units, and the provision on the submission of quarterly summary list of sales and purchases.
Adobe flex development company from United States.
Disangcopan said as to the sale of real property tax utilized for low-cost housing, under the Urban Housing Development Act of 1992 and other related laws has now an adjusted price ceiling of P750,000. Under RR 6-97, the original ceiling was P375,000.
As defined, low-cost housing refers to housing projects intended for homeless low-income family beneficiaries, undertaken by the government or private developer, and may either be a subdivision or a condominium registered and licensed by the Housing and Land Use Regulatory Board (HLURB).
On the sale of real property tax utilized for socialized housing, with a previous ceiling of P150,000 under RR 6-97, is now at P225,000.
Socialized housing refers to housing program and projects covering houses and lots or home lots only undertaken by the government or the private sector for the underprivileged and homeless citizens, and shall include sites and services development, long-term financing, liberalized terms on interest payments and other benefits in accordance with the provisions of RA No. 7279.
Sale by real estate dealers and/or lessors of houses and lots and other residential dwellings valued at P1.5 million and below are VAT exempt. The ceiling used to be P1 million under RR 6-97 and RA 9238.
The VAT exemption of P8,000 ceiling of lease of residential units has now increased to P10,000 monthly rental regardless of the amount of aggregate rentals received by the lessor during the year. An additional clause states that the exemption likewise applies to lease of residential units where the monthly rental per unit exceeds 10,000 but the aggregate rentals of the lessor during the year do not exceed P750,000.
On the sale of the lease of goods or properties or the performance of services other than those earlier mentioned, the gross annual sales and/or receipts does not exceed P750,000, originally at a lower ceiling of P550,000. As a condition, this shall be adjusted to its present value not later than January 31, 2006 using the consumer price index as published by the National Statistics Office.
As to the submission of quarterly summary list of sales and purchases, an amendment of which is that taxpayers under the jurisdiction of the Large Taxpayers Service and those enrolled under the Electronic Filing and Payment Service may submit their summary list of sales/purchases through electronic filing facility to the RDO, LTDO, or LTAD on or before the 30th day of the month following the close of their taxable quarter.
