BIR Ruling No. 035-65

May 7, 1965 BIR RULING NO. 035-65 The Investment Managers, Inc. Grepalife Building 221 Buendia, Avenue Makati, Rizal Attention : Mr . Jose C . Aguilar Legal Assistant Gentlemen : This refers to your letter dated June 26, 1964, requesting our opinion as to whether or not the deed of sale covering mining rights is subject to the documentary stamp tax prescribed in Section 233 of the Tax Code. cdt In reply, I have the honor to inform you that pursuant to Section 233 of the Tax Code as amplified by Section 174 of Regulations No. 26, deeds conveying mines are taxable. Mining right is defined as follows: "A mining right is a right to enter upon and occupy ground for the purpose of working it, either by underground excavation or open working, to obtain from it the minerals or ores which may be deposited thereunder. By implication, the grant of such a right carries with it whatever is incident to it and necessary to its beneficial enjoyment. The term may also include licenses and the rights of the owner of the minerals." 27 Words and Phrases, 247. "The position is not tenable that a 'mining right' is a mere easement in realty, and therefore not the subject of taxation. An estate in fee in the mineral or ores beneath the surface of a tract of land may be vested in one person and an estate in fee in the surface in another." (Ibid) In view of all the foregoing, it is the opinion of this Office and so holds that a deed of sale covering mining rights is subject to the documentary stamp tax prescribed in Section 233 of the Tax Code. Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue