BIR Ruling [DA-058-05]

February 22, 2005 BIR RULING [DA-058-05] P.D. 69; #011-2004 Mrs . Aurelia L . Lavilla Ma. Leonora Subdivision Mayapa, Calamba City M a d a m : This refers to your letter dated February 18, 2005 stating as follows: "In relation to the requirements of the Register of Deeds of Las Pias, for segregation of Lot 4-(LRC) Psd No. 247329, I am requesting for an exemption certification of Capital Gains on a Deed of Absolute Sale dated 1976 with an amount of P85,000.00 having an area of 197 square meters, located at Manuyo Uno, Las Pias City. Your immediate compliance is highly appreciated." In reply, please be informed that the imposition of final tax on capital gains related by individuals from the sale or other disposition of real property started only on September 7, 1979, in accordance with Batas Pambansa Blg. 37, as implemented by Revenue Regulations (RR) No. 8-79. Accordingly, the sale or transfer of properties whose deeds of conveyance were executed and acknowledged before a notary public prior to such date are not subject to the final tax on capital gains. ( BIR Ruling No . 148-84 dated September 5, 1984 ) Such being the case, the deed of absolute sale executed between Ricardo Razal as the seller and Cecilio G. Rodriguez as the buyer dated December 17, 1976 is not subject to the capital gains tax. ( BIR Ruling No . 011-2004 dated September 13, 2004 ) caDTSE 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 as null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal & Inspection Group