BIR eases on condo dues

Manila, Philippines – The Bureau of Internal Revenue (BIR) has softened its stand on the collection of income and value-added taxes out of the association dues, membership fees and other charges paid by condominium and homeowners associations.
BIR Commissioner Kim S. Jacinto-Henares said tax payments may be waived under certain conditions as prescribed under her new Revenue Memorandum Circular No. 9-2013.

The BIR chief said dues and membership fees will not be taxed if the local government having jurisdiction over the homeowner associations will certify that it has no, or insufficient funds to cover basic services rendered by the homeowners to their members.

She said condominium, or homeowner associations must present proof that the dues and fees are used “for cleanliness, safety, security and other basic services needed by members,“ 

The homeowners organization, she said, must also be duly constituted as “association“ as defined under Republic Act No. 9904 (Magna Carta for Homeowners Association) which grants tax incentives to homeowners associations.

Informed sources said the BIR relaxed its stand on the controversial ruling after many homeowners associations in Metro Manila and elsewhere protested it.

Two solons sponsored a bill in the House of Representatives seeking the abolition of the said taxes. (Jun Ramirez)