BIR Ruling [DA-240-96]

July 11, 1996 BIR RULING [DA-240-96] Kuok Philippine Properties, Inc. 10th Floor, Doa Salustiana D. Ty Tower 104 Paseo de Roxas cor. Perea Street Makati 1200, Metro Manila Attention: Ms. Cynthia M. Laureta Corporate Secretary Gentlemen : This refers to your letter dated July 10, 1996 requesting for the modification of BIR Ruling No. S-34-276-96 dated July 3, 1996 with the deletion of the following paragraph. "Finally, the certificate of stocks to be issued by Gipsey are, in all probability original issues, which are subject to the documentary stamp tax imposed by Section 175 of the Tax Code, as amended." since the certificate of stocks to be issued to KPPI by Gipsey, a foreign corporation organized and existing under the laws of and having its registered offices in the British Virgin Islands are not subject to Philippine documentary stamp tax. TcIAHS After a restudy of the aforesaid ruling, this Office is of the opinion as it hereby holds that the certificate of stocks to be issued by Gipsey to KPPI relative to the transfer by KPPI of its shares of stock in Shangri-la Asia Limited (SAL) solely in exchange for the shares of stock of Gipsey under Section 34 (c) (2) and (6) (c) of the Tax Code, as amended are not subject to the documentary stamp tax imposed by Section 175 of the Tax Code, as amended. This modifies BIR Ruling No. S-34-276-96 dated July 3, 1996 insofar as the certificates of stock to be issued by Gipsey to KPPI are concerned which are not subject to the documentary stamp tax imposed by Section 175 of the Tax Code, as amended. Very truly yours, (SGD.) ALICIA P. CLEMENO Assistant Commissioner Legal Service