BIR Ruling [DA-072-97]

February 20, 1997 BIR RULING [DA-072-97] Hon. Neptali A. Gonzales Senate Room 404, Executive House P. Burgos Drive cor. Finance St. and Taft Avenue, Manila S i r : This refers to your letter dated December 12, 1996 stating that on March 15, 1967, spouses Enrique de Guzman and Veronica Guevarra, owners of a parcel of land in Bo. Molino, Bacoor, Cavite, covered by TCT No. T-24193 sold the same to the Welfareville Evangelical Church, a local church then represented by its Vice-Chairman, Mr. Sesenio C. Rivera; that on June 30, 1968, the Welfareville Evangelical Church merged with the United Church of the Good Shepherd; and that pursuant to the "Basis of Union between the Church of the Good Shepherd and the Welfareville Evangelical Church", a Deed of Assignment covering the aforementioned property was executed in 1992 by the Welfareville Evangelical Church represented by Mr. Sesenio Rivera, Jr. in favor of the United Church of the Good Shepherd, Inc., a non-stock, non-profit religious corporation duly organized and existing under and by virtue of the laws of the Philippines. In connection therewith you are requesting exemption from the payment of whatever taxes arising from the said transaction. In reply thereto, please be informed that since the aforementioned assignment of the parcel of land covered by TCT No. T-24193 from the Welfareville Evangelical Church to the United Church of the Good Shepherd is without consideration and the conveyance is not in connection with a sale, the same is not subject to the creditable withholding tax on sale, exchange or transfer of real property pursuant to Revenue Regulations No. 6-85 as amended, otherwise known as the Expanded Withholding Tax Regulations. Moreover, the assignment and/or transfer of the said property is not subject to the Value-Added Tax (VAT) under Section 100 of the Tax Code, as amended. Furthermore, the aforesaid Deed of Assignment is not subject to the documentary stamp tax prescribed under Section 196 of the Tax Code, as amended but only to the documentary stamp tax of P15.00 imposed under Section 188 of the same Code, as amended by R.A. No. 7660. (BIR Ruling No. 041-92 dated January 27, 1992). Very truly yours, ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)