BIR Ruling

September 3, 1968 The President & General Manager Acoje Mining Company, Inc. P. O. Box 622 Manila S i r : In reply to your letter dated August 9, 1968, I have the honor to confirm the ruling contained in our letter to Mr. Domingo Racracquin of Basol, Pangasinan, holding that as the surface owner of the land where the Acoje Mining Company is operating and mining copper and other mineral ores, he should be paid by the Company the 5% of the royalty due on the value of the output of said mines. If a person, natural or artificial, has acquired an option on the surface rights after a mining location has been made on the minerals found in private land, the owner of the land and not the owner of the option, is entitled to the 5% share in the royalty. (BIR Ruling 195.02, July 19, 1939, Bul., 3rd Qtr., 1939). atdc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue