Deed of Land Transfer to Government No Doc. Stamp Tax

January 14, 1993 BIR RULING NO. 008-93 DEED OF LAND TRANSFER TO GOVERNMENT NO DOC. STAMP TAX 196 000-00 008-93 Alonto Victoriano & Cresencio Law Offices Second Floor, Spade Bldg., 1438 Quezon Ave. Quezon City Attention: Atty . Elias N . Cresencio This refers to your letter dated February 21, 1992 requesting in behalf of your client, Ellice Agro-Industrial Corporation, a ruling as to whether or not the Deed of Transfer of parcel of land executed by your said client in favor of the Republic of the Philippines for distribution to beneficiaries under Republic Act No. 6657, otherwise known as the Comprehensive Agrarian Reform Law of 1989 is subject to documentary stamp tax. It is represented that your client owns several parcels of land in Tiaong, Quezon Province, which the Republic of the Philippines, through the Department of Agrarian Reform, acquired pursuant to R.A. No. 6657; that after the Deed of Transfer in favor of the Republic of the Philippines was executed, your said client attempted to have the same registered with the Registry of Deeds of Quezon Province, this being one of the requirements for the release of the compensation of the land; that the Register of Deeds, however refused to register the transfer due to lack of Certificate Authorizing Registration (CAR) from the Revenue District Office in Quezon Province; that the Revenue District Officer for Lucena City, on the other hand, refused to issue the CAR without your client paying first the documentary stamp tax; that the Revenue District Officer is of the opinion that Section 66 of R.A. No. 6657 is vague as to the exemption of the said document from the payment of documentary stamp tax; and that the Revenue District Officer will issue the CAR without your client paying the documentary stamp tax only when a ruling to this effect is had from this Office. In reply, please be informed that Section 66 of R.A. No. 6657 provides, viz.: "Sec. 66. Exemptions from Taxes and Fees of Land Transfer. Transactions under this Act involving a transfer of ownership, whether from natural or juridical persons, shall be exempted from taxes arising from capital gains. These transactions shall also be exempted from the payment of registration fee, and all other taxes and fees for the conveyance or transfer thereof; Provided that all arrearages in real property taxes, without penalty or interest shall be deductible from the compensation to which the owner may be entitled." From the foregoing provision of Section 66 of R.A. No. 6657 it is clear that the exemption from taxes being referred to are those being imposed on the transfer of realty and therefore, it follows that the same includes the documentary stamp tax imposed on the document evidencing such transfer of realty considering that there could be on conveyance without a deed of sale or conveyance. Accordingly, this Office is of the opinion as it hereby holds that the aforesaid transfer of your client of its realty in favor of the Republic of the Philippines through the Department of Agrarian Reform is not subject to the documentary stamp tax imposed under Section 196 of the Tax Code, as amended. cd JOSE U. ONG Commissioner of Internal Revenue