BIR Ruling No. 122-84

July 19, 1984 BIR RULING NO. 122-84 245-56-84-122-84 Gentlemen : This refers to your letter dated March 19, 1984 stating that the Philippine Convention Bureau (PCB), is a government owned and controlled corporation created by virtue of Presidential Decree No. 867 as amended by Presidential Decree No. 1448; that it has purchased from Carruf Development Corporation condominium units 7 and 10-17 at the Legaspi Towers 300 Building, Roxas Blvd., Manila; and that PCB is registering said units at the Registry of Deeds of the City of Manila. Under the Deed of Absolute Sale executed by and between Carruf Development Corporation, as vendor and PCB as vendee, payment among others, of the documentary stamp tax due on the aforesaid sale shall be for the vendee's sole and exclusive account. You now request exemption from documentary stamp tax on the said deed of sale. In reply, I have the honor to inform you that Section 222 of the Tax Code which reads: "Sec. 222. Stamp taxes upon documents, instruments, and papers . Upon documents, instruments, and papers, and upon acceptances, assignments, sales, and transfers of the obligation, right, or property incident thereto, there shall be levied, collected and paid, for and in respect of the transaction so had or accomplished, the corresponding documentary stamp taxes prescribed in the following sections of this Title, by the person making, signing, issuing, accepting, or transferring the same, and at the time such act is done or transaction had." places the burden of paying the tax upon the parties to the contract and leaves the tax to be paid indifferently by either party, and accordingly, the party assuming payment of said taxes becomes directly liable therefor. (Sta. Clara Lumber Company Inc. vs. Jose Araas, CTA case No. 502, June 12, 1959) adc In the instant case, the vendee PCB has become directly liable for the tax; however, since Section 20 of P.D. No. 1448 which was promulgated on June 11, 1978, provides that the PCB, its assets, property, income and transactions shall be exempted from all taxes, impost, fees and charges the PCB is, therefore, exempt from paying documentary stamp tax on the aforementioned deed of sale. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner