Aida Buenaventura

May 5, 2009 BIR RULING [DA-(C-016) 220-09] 24 (D) (1); DA-(I-002) 011-08 dtd. 7/08/2008 Aida Buenaventura Pleasantville Subdivision Kaybiga, Caloocan City Madam : This refers to your letter dated March 12, 2009 requesting for exemption from the payment of capital gains tax and documentary stamp tax on the swapping of real properties to correct a mistake and without consideration. It appears that Aida Buenaventura is the registered owner of a parcel of land located at Caloocan City covered by Transfer Certificate of Title (TCT) No. 276875 containing an area of 96 sq.m., more or less, issued by the Registry of Deeds for Caloocan City; that Spouses Vicente J. Angeles and Elvira S. Angeles are the registered owners of a parcel of land located at Caloocan City covered by Transfer Certificate of Title (TCT) No. 270860 containing an area of 96 sq.m. more or less, issued by the Registry of Deeds for Caloocan City; that due to clerical error, the lot that is occupied by Aida Buenaventura is the lot that belongs to Spouses Vicente J. Angeles and Elvira S. Angeles; and that both parties agreed upon to rectify the error and effect changes in their respective lot numbers through a Deed of Exchange, thus, TCT No. 276875 shall be registered in the name of Spouses Vicente J. Angeles and Elvira S. Angeles and TCT No. 270860 shall be registered in the name of Aida Buenaventura. SCHIcT In reply, please be informed that since the exchange transaction is without any monetary consideration, and considering further that the execution of the Deed of Exchange is merely for the purpose of correcting the mistake above-described, the exchange of realties by and among Aida Buenaventura and Spouses Vicente J. Angeles and Elvira S. Angeles is not subject to the capital gain tax imposed under Section 24 (D) (1) of the Tax Code of 1997, as amended, nor to the Withholding Tax imposed under Revenue Regulations No. 2-93, as amended. Furthermore, the said swapping of real properties is not likewise subject to the documentary stamp tax imposed under Section 196 of the Tax Code of 1997, as amended. However, the notarial acknowledgment of the said deed is subject to the documentary stamp tax of P15.00 only pursuant to Section 188 of the Tax Code of 1997, as amended. 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. HIACEa Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service