Are association dues, etc of Condominium Corporations subject to business and income tax?

CONDOMINIUM CORPORATIONS: RMC 65-2012 – issued on October 31, 2012 clarifies the taxability of association dues, membership fees and other assessment/charges collected by condominium corporations from its members and tenants.  

For tax purposes, the association dues, membership fees and other assessment/charges collected by a condominium corporation constitute income payments or compensation for the beneficial services it provides to its members and tenants.  

Accordingly, the gross receipts of condominium corporations including association dues, membership fees and other assessment/charges are subject to VAT and Income Tax and income payments made to it are subject to applicable withholding taxes under existing regulations.

Bethuel V. Tanupan
CPA-Lawyer, CMA, MM, DipIFRS
Partner

Diaz Murillo Dalupan and Company is a member of HLB International.