DDC Land, Inc. (formerly Dry Dock Corporation)

April 10, 2008 BIR RULING [DA-228-08] DA 127-05 DDC Land, Inc. (formerly Dry Dock Corporation) Marbella 1 Condominium 14th Floor, Unit No. 6 2223 Roxas Boulevard Pasay City Attention: Ms. Rochel L. Baclao Credit & Collection Head and Engr. Edna R. Sutter Executive Vice President Gentlemen : This refers to your letter dated January 7, 2008 stating that DDC Land, Inc. is a domestic corporation duly registered with the Securities and Exchange Commission (SEC) engaged in the realty business; that Corazon Ambrocio purchased from DDC Land, Inc. a parcel of land described as Block 18, Lot 32 located at Santa Rosa Garden Villas I through the Home Development Mutual Fund (HDMF) Housing Loan Program; that as a requirement of the HDMF, DDC Land, Inc. transferred in trust the aforesaid property in favor of Corazon Ambrocio on the condition that she shall faithfully pay her amortization with the HDMF; that as a result of the non-payment of her monthly amortization with the HDMF, the latter has required DDC Land, Inc. to buy back the said property; and that on November 20, 2007, a Deed of Reconveyance was executed by Corazon Ambrocio in favor of DDC Land, Inc. Based on the foregoing representations, you now request for exemption from the payment of capital gains tax on the reconveyance by Corazon Ambrocio of the abovementioned property in favor of its previous owner, DDC Land, Inc. In reply thereto, please be informed that since the transaction is without any consideration, and considering further that the execution of the Deed of Reconveyance was not for monetary consideration, the same is not subject to the capital gains tax imposed under Section 24 (D) (1) of the Tax Code of 1997, nor to the withholding tax prescribed in Revenue Regulations No. 2-98, as amended. Furthermore, the said reconveyance of the real property is not likewise subject to the documentary stamp tax imposed under Section 196 of the Tax Code of 1997. However, the notarial acknowledgment to the said deed is subject to the documentary stamp tax of P15.00 pursuant to Section 188 of the said Code. TcIaHC 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.) JAMES H. ROLDAN Assistant Commissioner Legal Service