Quezon Agro Farms - Exempt from Capital Gains Tax

January 14, 1993 BIR RULING NO. 012-93 QUEZON AGRO FARMS EXEMPT FROM CAPITAL GAINS TAX 21 (e) 314-92 012-93 Limqueco-Macaraeg Law Office Suite 405, Federation Center Bldg. Muelle de Binondo Manila Attention: Atty . William C . Limqueco This refers to your letter dated August 27, 1992 requesting exemption in behalf of your client, Quezon Agro Farms Inc., from the payment of capital gains tax and documentary stamp tax on the voluntary transfer/sale of their agricultural land consisting of 110.7 hectares located at Dolores, Quezon Province, covered by the Transfer Certificate of Title No. T-175910, issued by the Registry of Deeds of Quezon Province, in favor of the Republic of the Philippines pursuant to Section of R.A. 6657, otherwise known as the Comprehensive Agrarian Reform law of 1989. cdta In reply, please be informed that Section 66 of R.A. 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." Accordingly, Quezon Agro Farms Inc. is exempt from the payment of capital gains tax and documentary stamp tax on the sale/transfer of their agricultural land in favor of the Republic of the Philippines. Moreover, this Office shall issue the certification authorizing the transfer of title to the purchaser thru the Revenue District Officer having jurisdiction over the place where the real property sold or disposed of is located. cd JOSE U. ONG Commissioner of Internal Revenue