66019RMC No 65-2012

In addition the same rulings exempted association

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Unformatted text preview: ition, the same rulings exempted association dues from value-added tax for the reason that a condominium corporation does not sell, barter, exchange, nor lease any goods or property and neither does it render any service for a fee, but merely implements the administration of the required services to collect the association dues from the unit owners pursuant to its corporate purpose(s) as trustee of the fund thereof. CLARIFICATION The taxability of association dues, membership fees, and other assessments/charges collected by a condominium corporation from its members, tenants and other entities are discussed hereunder. I. Income Tax -- The amounts paid in as dues or fees by members and tenants of a condominium corporation form part of the gross income of the latter subject to income tax. This is because a condominium corporation furnishes its members and tenants with benefits, advantages, and privileges in return for such payments. For tax purposes, the association dues, membership fees, and other assessments/charges collected by a condominium corporation constitute income payments or compensation for beneficial services it provides to its members and tenants. The prev...
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This document was uploaded on 02/09/2014.

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