BIR Ruling [DA-021-03]

January 27, 2003 BIR RULING [DA-021-03] 27 (D) (5); 196 Department of Finance Roxas Boulevard Corner Pablo Ocampo, Sr. Street Manila Attention: Nieves L. Osorio Undersecretary and Officer-In-Charge Gentlemen : This refers to your letter dated October 1, 2002 requesting for the assistance of this Office on the issuance of the requisite Certificate Authorizing Registration on the real estate property to be conveyed by the Bangko Sentral ng Pilipinas to the National Government through the Department of Finance as property dividend pursuant to the provisions of Section 132 of Republic Act No. 7653. The facts, as represented, are as follows: The Bangko Sentral ng Pilipinas (BSP) is conveying a real property located at Sta. Lucia Street corner Victoria Street, Intramuros, City of Manila as payment of property dividend to the National Government (NG) for the year 2001. The 3,658.60 square meter property, which is also known as the "Allied Warehouse," is covered by TCT No. 244913 issued by the Register of Deeds of Manila. The property being conveyed came in the light of NG's request to develop the said property as a possible venue for a Light and Sound Museum of Philippine History. The BSP is required under Section 132 of R.A. 7653 (BSP Charter) to remit to the National Government, by way of dividends, at least seventy-five percent (75%) of its profits. Likewise, R.A. 7656 (Dividend Law) authorizes Government-Owned and/or Controlled Corporations (GOCCs) to remit to NG a portion of their net earnings in the form of cash dividends, stock, dividends, or property dividends. In order to comply with these provisions, the BSP has proposed to declare the "Allied Warehouse" as property dividend for the year 2001. EIaDHS To facilitate the transfer of the said property, the BSP and NG, through the Department of Finance (DOF), have executed a "Deed of Conveyance". You now wish to secure the Certificate Authorizing Registration from the BIR. In reply, this Office rules that in light of the applicable provisions of the Code, the Certificate Authorizing Registration (CAR) may be issued by the Revenue District Officer of the Revenue District where the property is located so that title to the indicated property may be transferred from the corporation to the Republic of the Philippines (w/ DOF as agent thereof) at book value without payment of capital gains and documentary stamp taxes. However, the documentary stamp tax on the notarial acknowledgment in the document shall be paid at P15.00 under Section 188 of the Tax Code. ITScHa This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group