Applicable Rate of Tax on the Gains Derived from the Sale of a Parcel of Land

April 7, 1988 BIR RULING NO. 128-88 21 (c) 000-00 128-88 S i r : This refers to your letter dated March 21, 1988 requesting a ruling as to the applicable rate of tax on the gains derived from the sale of a parcel of land situated at Tandang Sora, Quezon City for a consideration of P36,200.00 made by Mr. Wenceslao Cajuigan in your favor on April 3, 1984. In reply, please be informed that pursuant to then Section 34(h) of the Tax Code, as amended by Batas Pambansa Blg. 37, net capital gains from the sale or other disposition of real property by citizens of the Philippine or resident alien individuals shall be subject to the final schedular income tax rates prescribed as follows: NET CAPITAL GAINS RATES on the first P100,000 or less 10% on any amount over P100,000 20% such tax shall be in lieu of the tax imposed under then Section 21 of the same Code. Accordingly, and inasmuch as Mr. Wenceslao Cajuigan sold his aforementioned property to you on April 3, 1984 for a consideration of the sum of P36,200.00, the applicable rate of tax is 10% on the net capital gains derived from said transaction pursuant to then Section 34(h) of the Tax Code as amended by Batas Pambansa Blg. 37. aisadc Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner