BIR Ruling No. 072-82

March 10, 1982 BIR RULING NO. 072-82 34-h 79-81 072-82 Guaranteed Homes, Inc. 3267 V. Mapa Street Sta. Mesa, Manila Attention: Ms . Alicia V . Pantig Vice-President Gentlemen : This refers to your letter dated January 4, 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 you derive from the sale of subdivision lots are considered ordinary gains, the same being profits derived from the sale of property held primarily to customers in the ordinary course of trade or business under Sec. 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 8-79 implementing Section 34(h) of the Tax Code, as amended by Batas Pambansa Blg. 37 is explicit that only natural persons or individuals are liable to the final capital gains tax rates prescribed therein. Very truly yours, RUBEN B. ANCHETA Acting Commissioner