BIR Ruling

June 8, 1966 Messrs. Ross, Selph, Salcedo Del Rosario, Bito & Misa P.O. Box 781 Manila Gentlemen : This has reference to your letter dated January 15, 1966 requesting a ruling as to whether or not the deed of sale conveying leasehold rights to mining claims is subject to documentary stamp tax prescribed in Section 233 of the National Internal Revenue Code. In reply thereto, I have the honor to inform you that Section 233 of the National Internal Revenue Code provides that any document conveying real property sold is subject to documentary stamp tax prescribed in said provision. Article 415 of the New Civil Code, which enumerates what are considered as immovable or real property, mentions, among others, "contracts for public works, and servitudes and other real rights over immovable property " (Emphasis supplied). By analogy, leasehold rights to mining claims are real property, it being exercised over immovable properties. (1 Castan, 8th Ed., Part II, p. 382, cited in E.P. Caguioa, Comments and Cases on Civil Law). Such being the case, the sale of leasehold rights to mining claims may be considered sale of real property, and, therefore, the document evidencing the sale thereof is subject to the documentary stamp tax prescribed in the aforementioned section of the Tax Code. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue