BIR Ruling [DA-302-00]

August 11, 2000 BIR RULING [DA-302-00] Secs. 24 (D), 40 (A); 174-90, DA 073-2000; DA-302-2000 Mrs . Elisa B . Naval No. 41-B Malumanay Street Sikatuna Village, Quezon City M a d a m : This refers to your letter dated June 13, 2000 requesting in effect for exemption from the payment of the capital gains and documentary stamp in connection with your intention to assign your right over a condominium unit (Unit No. 0623) with a parking slot identified as unit P45-E at Cityland Wack Wack Royal Mansion located at Wack Wack Road, Mandaluyong City, in favor of your daughter Katherine Naval del Castillo. 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 in assignment of rights, 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 while the title or ownership thereof still remains, in this particular case 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, however, is 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. (BIR Ruling No. DA 073-2000 dated February 2, 2000). TaCEHA Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group