BIR Ruling [DA-552-99]

September 23, 1999 BIR RULING [DA-552-99] Atty. Maria Portia E. Rosell 19F PDCP Bank Building 8737 Paseo de Roxas Makati City M a d a m : This refers to your letter dated September 13, 1999 requesting in effect for exemption from the payment of capital gains and documentary stamp taxes in connection with the intention of Edgar Lucas I. Aclan to assign his right over a condominium unit (Unit No. 731) at Cityland Pioneer located at Pioneer Street, Mandaluyong City, in favor of Atty. Rosario Abigail M. Dris. 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 pertain while the title or ownership thereof still remains with the developer. LexLib However, any gain realized by Edgar Lucas I. Aclan 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. Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)