Requirements for Coop Housing Tax Exemptions
APPLICATIONS FOR tax exemptions are free of charge. The cooperative just needs to go to the local Revenue District Office of the BIR in their area, apply for general tax exemption and for exemptions related to the socialized housing project, and submit all the documentary requirements asked by the BIR.
Some of the important documents that the BIR would request to facilitate the application for tax exemption are the following:
Formal letter to the BIR commissioner;
CDA Registration of the cooperative;
Articles and By-laws of the cooperative; and
Endorsement letter and certification from NHA that the cooperative is involved in housing project.
In summary, cooperatives are required to produce the following documentary requirements for their housing cooperative projects:
During Project Planning and Design
1. Land Title (TCT or OCT) and Zoning Certification
2. Local Clearance (PALC) and Land Use Conversion Clearance
3. ECC and EGGAR
During Project Implementation (Pre-Construction Preparation)
1. Development Permit and Building Permit
2. Water Permit and Electrical Permit
3. Sanitary Permit
During Project Implementation (Land Development & House Construction)
For subdivision of title
1. Certificate of Registration
2. License to Sell
Source: National Confederation of Cooperatives (NATCCO), “Cooperatives in Housing – Regulatory & Technical Plans: A Guide for Cooperatives on Regulatory & Technical Requirements”, 2004.