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BIR Rulings on Socialized Housing under Republic Act No. 7279 - REVENUE MEMORANDUM CIRCULAR RMC NO. 36-2011

REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE
Quezon City
August 26, 2011

REVENUE MEMORANDUM CIRCULAR NO. 36-2011

SUBJECT: BIR Rulings on Socialized Housing under Republic Act No. 7279

TO              : All Internal Revenue Officials, Employees and Others Concerned 
 This Circular is issued to clarify BIR rulings on  socialized housing which include a
statement on the price ceiling for socialized housing units without provision as to the
distinction of the price ceiling for house and lot  packages and lots only. The definition of
socialized housing was provided in Revenue Regulations (RR) No. 11-97 and reiterated in
RR17-01 to wit:

“Socialized Housing — refers to housing programs and projects covering houses
and lots or homelots only that are undertaken by the government or the private
sector for the underprivileged and homeless citizens, which shall include sites and
services development, long-term financing, liberalized terms on interest payments,
and as such other benefits in accordance with the provisions of Republic Act 7279.

A socialized housing unit shall not exceed P150,000.00 (now P400,000.00 per
issuance of HUDCC Memorandum Circular No. 1, Series of 2008 promulgated on
December 11, 2008, as implemented by Revenue Memorandum Circular No. 30-
2009 dated May 14, 2009) for a house and lot package, subject to periodic
adjustment or increase as the Housing and Land Use  Regulatory Board (HLURB)
may effect from time to time. In the case of sale of homelots only, the price shall
not exceed forty percent (40%) of the maximum limit prescribed for the house and
lot package. (underscoring supplied)”

 From the foregoing, the P400,000.00 price ceiling applies to house and lot packages, and that
if only lots are sold, the price ceiling should only be P160,000.00/lot (40% of P400,000.00).
 All concerned are hereby enjoined to be guided accordingly and to give this Circular
as wide publicity as possible.   
    
      (Original Signed)
      KIM S. JACINTO-HENARES
  Commissioner of Internal Revenue
                                     005364

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