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
