BIR Ruling No. 107-65

September 14, 1965 BIR RULING NO. 107-65 The Principal Laguna School of Arts & Trades Santa Cruz, Laguna S i r : This has reference to your letter to the Auditor General dated June 3, 1965, requesting exemption from the payment of registration and Bureau of Internal Revenue fees on the lots to be acquired by your school for school site purposes which was referred to this Office for comment and recommendation. In this connection, please be informed that a deed of sale of real property in favor of the government for an amount exceeding P200.00 is subject to the documentary stamp tax prescribed in Section 233 of the National Internal Revenue Code. Pursuant to Section 210 of the same Code the documentary stamp tax shall be due from the person making or signing the document. Article 1487 of the New Civil Code provides that "the expenses for the execution and registration of the sale shall be borne by the vendor unless there is a stipulation to the contrary." Therefore, the documentary stamp tax on a deed of sale in favor of the government should be paid by the vendor. In case of a stipulation in the contract that the government assumes the obligation of paying the tax, such agreement shall be given due course and the government shall pay the tax for the account of the vendor. The amount paid therefor shall be considered part of the purchase price of the property. (BIR Ruling No. 249, s. 1960) As regards your request for exemption from the payment of registration fees, you are advised to file said request with the Land Registration Commission which administers the registration of land and other real property. casia Very truly yours, (SGD.) MISAEL P. VERA Acting Commissioner of Internal Revenue