BIR Ruling No. 054-80

November 19, 1980 BIR RULING NO. 054-80 34-b 000-00 54-80 Mr. Damaso B. Dahino Deputy Sheriff Office of the Provincial Sheriff Cagayan de Oro City S i r : In reply to your letter seeking the opinion of this Office on the applicability of the capital gains tax on the sale of real property executed by the Sheriff in favor of a credit pursuant to a judgment order, please be informed that under Section 34(h) of the Tax Code of 1977, as amended by Batas Pambansa Blg. 37, gains realized from sale of real property which took place beginning September 7, 1979 are subject to the final schedular capital gains tax of 10% on the first P100,000 and 20% on the excess over P100,000.00. This particular tax applies even in involuntary sales as in the sale of property to satisfy a judgment debt. Such being the case, registration of the certificate of sale cannot be effected unless proof of payment of the capital gains tax, if any be due in the particular case, has been shown before the Register of Deeds of the place where the property subject of the sale is located. cdti Very truly yours, RUBEN B. ANCHETA Acting Commissioner