Exemption from the Coverage of RR No. 12-89, as amended by RR No. 1-90

February 9, 1990 BIR RULING NO. 017-90 50 (b) 00-000 017-90 Gentlemen : This refers to your letter dated January 11, 1990 requesting in effect a ruling that you and/or the Asset Privatization Trust (APT) are exempt from the payment of the 10% withholding tax imposed under Revenue Regulations No. 12-89 relative to the sale in your favor by APT of a parcel of land with improvements situated at La Union covered by a Deed of Absolute Sale executed January 8, 1990. It is represented that your aforesaid request is being sought in compliance with the requirement of the Register of Deeds in order to register and transfer the certificate of title over the property in your name. In reply, please be informed that Section 35 of Proclamation No. 50 provides, viz: "SEC. 35. Exemption from taxes, fees and other charges . The provisions of any law to the contrary notwithstanding, the Trust as well as the corporations and assets held by it, shall be exempt from all taxes, fees, charges, imposts, and assessments arising from or occasioned by the passing of title over such corporations or assets from the government institutions to the Trust and/or from the Trust to a private acquisitor or buyer imposed by the National Government or any subdivision thereof including but not limited to stock transfer taxes, capital gains taxes, documentary stamps, registration fees and the like: Provided, that in case the said government institutions acquired the said assets by foreclosure, the non-payment of similar taxes, fees, charges, imposts, and assessments shall not be a bar to the consolidation of title in the foreclosing institutions and the subsequent passing of title to the Trust or the corporations held by the Trust." Accordingly, and since Revenue Regulations No. 12-89, as amended, imposes a National Government tax arising from the passing of title over real property other than capital assets, this Office is of the opinion and so holds that the sale in your favor by APT or the Trust of a parcel of land with improvements situated at La Union covered by a Deed of Absolute Sale executed on January 8, 1990 is exempt from the coverage of Revenue Regulations No. 12-89, as amended by Revenue Regulations No. 1-90. cd Very truly yours, (SGD.) JOSE U. ONG Commissioner