BIR Ruling [DA-185-98]

May 8, 1998 BIR RULING [DA-185-98] Atlanta Land Corporation Suite 204, Goldhill Tower No. 5 Annapolis St., Greenhills San Juan, Metro Manila Attention: Ms . Susana S . Chan General Manager Gentlemen : This refers to your letter dated April 3, 1998 requesting that the conveyance of the common areas of your subdivision project be exempted from the payment of creditable withholding and documentary stamp taxes. It appears that the Atlanta Land Corporation is the registered/lawful owner of Lot 2M, Block Right of Way; that said lot is the common driveway of Chateau Victoria Subdivision located at Barangay Damayang Lagi, Quezon City; that said property is specifically covered by Transfer Certificate of Title No. N-164279 issued by the Registry of Deeds for Quezon City; that Chateau Victoria Homeowners Association, Inc. (Association) is the management body of the homeowners of the said subdivision; and that a Deed of Conveyance was executed by and between Atlanta Land Corporation and the Association on March 30, 1998 whereby the former conveys in favor of the latter the above-described property who shall in turn manage, administer and/or maintain the same. In reply, please be informed that the conveyance of the common driveway by Atlanta Land Corporation to the Association is not subject to capital gains and withholding taxes since the conveyance of the common driveway is not for a monetary consideration. Likewise, since there is no monetary consideration for the conveyance of the amenities/facilities, the Deed of Conveyance is not subject to the documentary stamp tax under Section 196 of the Tax Code, as amended, but only to the documentary stamp tax of P15.00 on certification under Section 188 of the Tax Code, as amended. (BIR Ruling No. 115-94 dated July 1, 1994). 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 null and void. Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)