OFFICEMETRO PHILIPPINES, INC. (formerly REGUS CENTRES, INC.) v. COMMISSIONER OF INTERNAL REVENUE, CTA Case No. 8382, June 3, 2014

Taxation; Association/condominium dues and other fees and charges collected from members that are used solely for administrative purposes are not subject to income tax and withholding tax. The BIR in its various rulings, held that association/condominium dues, membership fees and other assessment/charges collected from the members, which are merely held in trust and which are to be used solely for administrative expenses in implementing their purpose(s), viz., to protect and safeguard the welfare of the owners, lessees and occupants; provide utilities and amenities for their members, and from which the corporation could not realize any gain or profit as a result of their receipt thereof, must not be included in said corporation’s gross income. This means that the same are not subject to income tax and to withholding tax.

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