Tax on the Gain Derived from the Sale of Its Property

May 28, 1980 BIR RULING NO. 066-80 * Society of Catholic Medical Missionaries, Inc. 7 Fabian de la Rosa, Loyola Heights, Quezon City Attention: Sister Lina Santiago, SCMM Gentlemen : This refers to your letter dated July 26, 1978 requesting a ruling on whether or not the gain to be derived from the sale of your property is subject to capital gains tax. You have represented that you are a religious corporation which acquired a parcel of land situated at Lipa City, with an area of 88,800.24 sq. meters (right of way 47.76 sq. meters excluded) for your mission and formation work; that you plan to sell the said parcel of land including the improvements thereon, the proceeds of which will be used for the acquisition of a new site and for other purposes in furtherance of your work. In reply thereto, I have the honor to inform you that while a corporation or association organized and operated exclusively for religious, charitable, scientific, athletic, or cultural purposes, or for the rehabilitation of veterans, no part of the net income of which inures to the benefit of any private stockholder or individual, is exempt from tax on income received by them as such, nevertheless, the income of whatever kind and character of the organization from any of its properties, real or personal , or from any of its activities conducted for profit, regardless of the disposition made of such income shall be subject to tax pursuant to Section 27 of the Tax Code, as amended. Such being the case, the gain derived by your client from the aforesaid sale of its property shall be subject to tax. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner Footnotes * revoked by BIR Ruling No. 569-88 dated Nov. 29, 1988.