Exemption from Capital Gains Tax on Capital Gains Derived from Yearly Installments on Sale of Land
BIR Ruling No. 152-87 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jun 5, 1987
Full text
June 5, 1987 BIR RULING NO. 152-87 34-h 112-83 152-87 S i r : In reply to your letter dated April 13, 1987, please be informed that you are exempt from the capital gains tax on the gains derived from the yearly installments paid by your tenant-purchaser as a result of the sale of your land covered by Transfer Certificate of Title No. RT-184 (T-15297) of the Register of Deeds of Oriental Mindoro located at Nag-iba I, Naiyan, said province being under the Land Reform Program of the Government pursuant to Presidential Decree No. 57, amending Presidential Decree No. 27, which reads as follows: "1. The landowner shall be exempt from the capital gains tax on the proceeds of the amortizations paid him by the tenant-purchaser and likewise from income tax due on the accruing interests paid as an addition to the total cost of the land." Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner
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