Revised Association Dues in relation to Train Law

TO                          :               OUR VALUED RESIDENTS

DATE                     :               FEBRUARY 23, 2018

SUBJECT               :               REVISED ASSOCIATION DUES AS PER TRAIN LAW

 

Kindly be informed that in line with the new Tax Reform for Acceleration and Inclusion Law or the TRAIN Law, condominium dues are now exempted from the Value Added Tax or VAT effective January 1, 2018.

 

Please note that Revenue Memorandum Circular 65-2012 which was also released by BIR last 2012 states that association dues are vatable and requires us to deduct the VAT imposed on us by suppliers (Input VAT) from the VAT we collect from the members (Output VAT). 

 

With the TRAIN law, the VAT will no longer be collected from the members, however, we still have the responsibility to pay VAT to our suppliers which they are charging to us.  Computations were done on this effect and we are adjusting the association dues starting January 2018 by reducing it to Php 4.90 per square meter or from Php 78.40 to Php 73.50  per square meter per month.  Please see below table that shows the revised association dues computation:

 

New Association Dues

Sample

Unit Size

Monthly Dues

Annual Dues

Discounted Dues

Php 73.50

59.56

Php 4,377.66

Php 52,531.92

Php 49,905.32

Php 73.50

114.11

Php 8,387.09

Php 100,645.02

Php 95,612.77

 

This reduction though not for the full 12% is necessary in order to compensate for the VAT expense that could affect the association’s finances negatively.  We hope to be able to maintain the same level of service that we render to our residents.

 

We are pleased to inform you that the Board has also approved to extend the deadline for the 5% discount privilege for those who wish to settle their 2018 annual association dues in full.  The new deadline of payment will now be on March 15, 2018.

 

For those who paid in advance and have paid VAT, may we request to please send back the Official Receipt that was issued to you for replacement.  You have the option to refund or apply the VAT paid as your advances or credit in your succeeding billings.

 

For your kind information.

 

Yours sincerely,

 

For and on behalf of

The Address at WackWack Condominium Corporation

 

 

 

Luisa Joven

Building Manager