BIR Ruling No. 048-83

March 24, 1983 BIR RULING NO. 048-83 Gentlemen : This refers to your letter dated June 8, 1982 requesting exemption from the capital gains tax under Section 34(h) of the Tax Code as amended by Batas Pambansa Blg. 37. In reply, I have the honor to inform you that the gains that you derive from the sale of subdivision lots are considered ordinary gains, the same being profits derived from the sale of property held primarily for sale to customers in the ordinary course of trade or business under Section 34(a)(1) of the Tax Code of 1977, as amended. Such being the case, said gains are not subject to the capital gains tax under Section 34(h) of the Tax Code, as amended by Batas Pambansa Blg. 37, as implemented by Revenue Regulations No. 8-79, but to the ordinary corporate income tax prescribed under Section 24 of the Tax Code, as amended. Moreover, Revenue Regulations No. 8-79 implementing Section 34(h) of the Tax Code, as amended by Batas Pambansa Blg. 37 is explicit that only natural persons or individual are liable to the final capital gains tax rates prescribed therein. cdta Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue