Request for Exemption from Capital Gains Tax for Sale of Public Land

August 26, 1985 BIR RULING NO. 139-85 34 (h) 000-00 139-85 M a d a m : This refers to your letter dated May 17, 1985 requesting exemption from the capital gains tax prescribed by Section 34(h) of the Tax Code as amended by Batas Pambansa Blg. 37. It appears that pursuant to the provision of Chapter IX of Commonwealth Act No. 141 as amended, and Republic Act No. 730 governing the sale of portions of public domain, there was on December 6, 1984, sold to you by the Ministry of Natural Resources, a residential lot No. 3718, TS-308 containing an area of 614 square meters more or less, situated in Olongapo City covered by Miscellaneous Sales Patent No. 10167; and that the Register of Deeds of Olongapo City would not register the title in your name without clearance from this Office on the payment of the capital gains tax. In reply, I have the honor to inform you that the aforementioned sale of public land to you is not subject to the capital gains tax imposed by Section 34(h) of the Tax Code, as amended by Batas Pambansa Blg. 37. cdtech Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner