BIR Ruling [DA-095-00]

February 10, 2000 BIR RULING [DA-095-00] 24 (D), 40 (A); 174-90 Ms. Mary Grace G. Castaeda 3180 F. Roxas St., Sta. Ana Manila M a d a m : This refers to your letter dated November 8, 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. 514) 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 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 pertains and considering that the title or ownership over the property in this case, still remains with the developer . However, any gain realized by you from and as a consequence of such assignment is subject to income tax. The Deed of Assignment, is likewise 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. HCSAIa Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)