BIR Ruling No. 155-83

September 5, 1983 BIR RULING NO. 155-83 Gentlemen : This refers to your letter dated June 29, 1983 requesting a ruling of the tax consequence of the proposed sale of property of the New Zealand government located at Cambridge Circle, Forbes Park, Makati, Metro Manila. It is represented that in 1974, the New Zealand government purchased a parcel of land covered by TCT No. S-326 and with an area of 2,378 square meters more or less in Cambridge Circle, Forbes Park, Makati, Metro Manila for the purpose of building thereon an official residence for the New Zealand Ambassador; that it has decided, however, not to proceed with the plan to build a residence but to purchase an existing house; and so the New Zealand government now intends to sell the aforementioned property. In reply thereto, I have the honor to inform you that pursuant to Article 34 of the Vienna Convention on Diplomatic Relation adopted at Vienna on April 18, 1961, pertinent portion of which is quoted hereunder as follows: "Art. 34. A diplomatic agent shall be exempt from all dues and taxes, personal or real, national, regional or municipal, except : xxx xxx xxx "b. dues and taxes on private immovable property situated in the territory of the receiving State, unless he holds it on behalf of the sending State for the purpose of the mission ; xxx xxx xxx (Emphasis supplied) any gain to be derived by the New Zealand government from the proposed sale of its real property at Cambridge Circle, Forbes Park, Makati, Metro Manila is exempt from Philippine income tax. cdtech Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue