May 14 deadline for SPV Act tax exemptions

May 14 deadline for availment of SPV Act tax exemptions (BSP Memorandum No. M-2008-14, March 17, 2008)

Banks are reminded that to be entitled to the tax and fee exemption privileges under the amended Special Purpose Vehicle (SPV) Act, the following transactions must occur on or before May 14, 2008.

1. Transfer of the non-performing by the financial institution (FI) to the SPV
2. Transfer of the real and other properties acquired (ROPA) by the FI to an SPV
3. Dacion in payment of the NPL by the borrower to the FI
4. Dacion in payment of the NPL by a third party, on behalf of the borrower, to the FI
5. Transfer of the NPL by the FI to an individual
6. Transfer of the ROPA (single family residential unit) by the FI to an individual

The BSP will accept applications for Certificate of Eligibility (COE) only until June 13 or 30 days after the deadline. For the purpose of determining whether a transaction occurred within the May 14, 2008 deadline, relevant documents to support the application (Asset Sale and Purchase Agreement, Deed of Assignment, Deed of Dacion, etc.) should be notarized not later than May 14, 2008.

Please find attached a copy of the BSP Memorandum for your reference.