BIR Ruling [DA-073-00]

February 2, 2000 BIR RULING [DA-073-00] 24 (D), 40 (A) 174-90 Ms. Rebecca Marie C. Yatco 2137 Zamora St. Pasay City M a d a m : This refers to your letter dated August 13, 1999 requesting in effect for exemption from the payment of the capital gains and documentary stamp taxes in connection with your intention to assign your right over a condominium unit (Unit No. 1411) at Cityland Pioneer located at Pioneer St., Mandaluyong City, in favor of Mr. Jose Manuel B. Feliciano. In reply, please be informed that assignment of rights in real property is not subject to the capital gains tax under Section 24(D)(1) of the Tax Code of 1997 because in assignment of rights, the assignee merely steps into the shoes of the assignor without acquiring a better right than what the assignor had in the property to which the right assigned pertain while the title or ownership thereof still remains, in this particular case, with the developer . However, any gain realized by you from and as a consequence of such assignment is subject to income tax. EADSIa The Deed of Assignment, however, is subject to the P15.00 documentary stamp tax imposed under Section 188 of the Tax Code of 1997. 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 from that as represented, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)