BIR Ruling

October 1, 1973 Messrs. Meer, Meer & Meer 9th Floor, PLDT Building Legaspi St., Makati, Rizal S i r : In reply to your letter dated September 28, 1973, I have the honor to inform you that where a capital asset of an individual is sold on the installment basis during period of effectivity of Presidential Decree No. 16, as amended by Presidential Decree No. 16-A, the gains corresponding to the installment payments received thereafter, that is after October 5, 1973, which are invested in qualified investments within the scope and purview of the Decree, as amplified by Revenue Regulations No. 7-72, as amended by Revenue Regulations No. 7A-72, remain exempt from income tax. Your query, therefore, with respect to the capital asset projected in your letter which will be sold on installment basis, as to whether or not the installment payments to be received after October 5, 1973 are covered by Presidential Decree No. 16, as amended by Presidential Decree No. 16-A, is hereby answered in the affirmative. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5