BIR Ruling [DA-166-99]

March 19, 1999 BIR RULING [DA-166-99] Social Security System East Avenue, Diliman Quezon City Attention: Atty . Amador M . Monteiro Sr . Vice President Legal and Collection Gentlemen : This refers to your letters dated September 24, 1998 and February 25, 1999 requesting for a ruling that in the determination of the due date for both the capital gains tax and documentary stamp tax on mortgaged foreclosure sale, the date of sale to be considered shall be the date of release of the Certificate of Sale and not the date of the auction sale. It is represented that relative to the payment of the capital gains tax and documentary stamp tax on properties mortgaged with the Social Security System (SSS) which were foreclosed extrajudicially and wherein the SSS was also the buyer being the highest bidder, it is to your understanding that the due date for filing the capital gains tax is within 30 days from the date of auction while documentary stamp tax is due on or before the 10th day of the month following the month of auction sale, that much as you would like to pay the said taxes within the prescribed period, you cannot possibly meet the time frame due to delay beyond your control, and that the Certificate of Sale to be used or basis of payment were released to you by the Sheriff's Office beyond the said period. aisadc In reply, please be informed that a Certificate of Sale is an evidence of the perfection of a contract or a sale. The said Certificate comes after the actual sale or auction sale. Thus, in the determination of the due date for both capital gains tax and documentary stamp tax purposes, the date of sale to be considered shall be the date of release of the Certificate of Sale and not the date of auction sale. (BIR Ruling No. 050-96 dated April 11, 1996) Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)