COMMUNITY MORTGAGE
PROGRAM (CMP)
Description.
The Community Mortgage Program (CMP) is a
mortgage financing program of the National Home Mortgage Finance
Corporation (NHMFC) which assists legally organized associations
of underprivileged and homeless citizens to purchase and develop
a tract of land under the concept of community ownership. The
primary objective of the program is to assist residents of blighted
areas to own the lots they occupy, or where they choose to relocate
to and eventually improve their neighborhood and homes to the
extent of their affordability.
Republic Act (RA) No. 7279, known as the Urban
Development and Housing Act of 1992, exempts from the Capital
Gains Tax or ordinary Income Tax and its corresponding creditable
withholding tax, the properties sold under the CMP. Documentary
Stamp Tax (DST) on the transaction must be paid, however.
In general, the certification to be issued
by the NHMFC shall be sufficient basis for the issuance of the
Tax Clearance and Certificate Authorizing Registration by the
appropriate Revenue District Officer (RDO). Significantly, there
is no longer a need for the taxpayer to submit with the Legal
Division of the regional offices a request for a ruling on its/his
tax exemption.
Codal Reference.
Section 32(b) of RA 7279;
Section 196 of the Tax Code of 1997.
Procedures and Compliance Requirements.
In general, the NHMFC shall execute a certification
that the subject property is a CMP project. On this basis, the
RDO shall issue the Tax Clearance and Certificate Authorizing
Registration (CAR/TCL) within 5 days from fulfillment of compliance
requirements under Revenue Regulations No. 17-2001. The payment
of the DST is a necessary requirement.
Tax Forms.
BIR Tax Form 2000
for the DST.
NHMFC
Certification duly signed by its President with attachments
Related Revenue and Other Issuances.
Revenue Regulations
No. 17-2001 Revenue Regulations (RR) No. 17-2001 (implementing
the provisions on Community Mortgage Program of RA No. 7279,
otherwise known as the "Urban Development and Housing Act
of 1992"), specifically repealed Section 4.C.2 and Section
5.I of RR No. 9-93 and Section 4.C(b) and Section 5.F and G
of RR No. 11-97.
See also Revenue Memorandum Circular (RMC)
No. 42-2001 and RMC No. 43-2001.
