Request for Exemption from Documentary Stamp Tax on the Deed of Sale Covering a Condominium Unit

February 21, 1985 BIR RULING NO. 026-85 222 00-77 026-85 Gentlemen : This refers to your letter dated November 18, 1982 requesting exemption from the documentary stamp tax on the deed of sale covering a condominium unit sold to that corporation by Alakor Corporation. It is represented that a Coal Operating Contract was executed on July 11, 1977 by and between the Ministry of Energy thru the Bureau of Energy Development on one hand and Vulcan Industrial and Mining Corporation and Sulu Sea Oil Development Corporation (now known as the Energy Corporation) on the other, later on joined by Seafront Petroleum and Mineral Resources, Inc., as operators and predecessors in interest of Semirara Coal Corporation, for the exploration, development, mining and utilization of coal over Semirara Island, Antique, under the terms and conditions provided in the contract and pursuant to the provisions of Presidential Decree No. 972, otherwise known as the Coal Development Act of 1976 dated July 27, 1976; that on March 12, 1982 a contract of sale of a condominium unit, was executed by and between Alakor Corporation and Semirara Coal Corporation, whereby the latter corporation is being required to pay the documentary stamp tax due on the deed of sale. In reply, I regret to inform you that your request cannot be granted for lack of legal basis. The exemption from all taxes, except income tax under Section 16 of Presidential Decree No. 972 is given to the operator of a coal mine in connection with a coal contract entered into by him with the Government. In other words, the exemptions are in connection with the operation of a coal mine under a coal operating contract. In the instant case, the sales of a condominium by Alakor Corporation to you, although you are an operator of a coal mine, is not connected with the said operation of a coal mine. Hence, P.D. No. 972 cannot be invoked by you for purposes of the exemption from documentary stamp tax on the aforesaid contract of sale of condominium unit. aisadc Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner