Dividends Received by a Duly-Registered Labor Organization from the PLDT Company are Exempt from the 10% Withholding Tax

June 27, 1980 BIR RULING NO. 085-80 The Sangguniang Bayan Miag-ao, Iloilo Gentlemen : This refers to your Resolution No. 48, Series of 1979, captioned "REQUESTING EXEMPTION FROM PAYMENT OF TAXES ON CAPITAL GAINS THE SALE OF REAL PROPERTIES IN FAVOR OF THE UNIVERSITY OF THE PHILIPPINES FOR THE ESTABLISHMENT OF THE 'UNIVERSITY OF THE PHILIPPINES IN THE VISAYAS' IN MIAGAO, ILOILO", which was forwarded by the Office of the President, University of the Philippines, Quezon City, for favorable action. In reply, please be informed that in the absence of a law expressly granting exemption to that effect, the capital gains that the selling landowners would derive from the sale of their parcels of real property to the University of the Philippines to become the 1,250-hectare site of the University of the Philippines in the Visayas, shall be subject to the schedular rates of capital gains tax prescribed by Revenue Regulations No. 8-79 implementing Section 34(h) of the Tax Code of 1977, as amended by Batas Pambansa Blg. 37. Very truly yours, RUBEN B. ANCHETA Acting Commissioner