BIR Ruling

August 9, 1976 Pilar Development Corporation Intramuros BF Condominium Building Manila Attention: Mr . Antonio P . Andaya President Gentlemen : This refers to your letter dated November 12, 1975 requesting a ruling whether a Deed of Confirmation of Sale is subject to documentary and science stamp taxes under Section 233 of the Tax Code. It appears that you purchased a parcel of unregistered land (not covered by a certificate of title) sometime in February, 1972; that the Deed of Sale of this unregistered land was accordingly registered with the Register of Deeds of Rizal under Act No. 3344; and that you paid the corresponding documentary and science stamp taxes due on said document pursuant to Section 233 of the Tax Code. It appears further that a certificate of title under Act No. 496 covering the aforesaid land was issued for which reason, the vendor executed a Deed of Confirmation of Sale in your favor, which you are now registering under Act No. 496 for the purpose of transferring the certificate of title over the aforesaid property in your name; that in the process of registering the said Deed of Confirmation of sale, the Register of Deeds of Rizal (Makati Branch Registry) required, among others, that documentary and science stamps in an amount equivalent to that affixed to the Deed of Sale of Unregistered Land be affixed to the Deed of Confirmation of Sale, pursuant to the opinion of the Land Registration Commissioner contained in the letter-reply to the Philippine Shares Corporation dated October 20, 1975, the dispositive portion of said opinion reads as follows: "Since the registration sought involves a second registration under Act No. 496 which is a different system of registration the necessary documentary and science stamps should be affixed on said document of confirmation of sale in order to comply with the legal requirement." In reply, I have the honor to inform you that it appearing that the documentary and science stamp taxes due on the deed of sale had already been paid, the Deed of Confirmation of Sale is no longer subject to the documentary and science stamp taxes. The documentary stamp tax, being an excise tax is paid only once. (Commissioner of Internal Revenue vs. Heald Lumber Company, G.R. No. L-16340, February 22, 1964). However, the Notarial Acknowledgment forming part of the Deed of Confirmation of Sale is subject to the thirty-centavo documentary stamp tax. (Section 225 of Tax Code). It is not, however, subject to an equal amount of science stamp tax pursuant to Section 4, of Republic Act No. 5448. aisa dc Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."