BIR Ruling No. 163-83

September 22, 1983 BIR RULING NO. 163-83 Gentlemen : This refers to your letter dated December 21, 1982 requesting exemption from the capital gains tax under Section 34(h) of the Tax Code as amended by Batas Pambansa Blg. 37 on gains realized by Victoria Poultry Farms, Inc. arising out of the sale of its three (3) parcels of land i.e., Lot 13565-C with an area of 920 square meters, Lot 13571-B with an area of 163 square meters, Lot 13565-I with an area of 134 square meters all situated in Barrio San Rafael, San Pablo City, to the spouses Raul D. Alcantara and Angelita T. Alcantara for the amount of P60,000.00. In reply, I have the honor to inform you that Revenue Regulations 8-79 implementing Section 34(h) of the Tax Code, as amended by Batas Pambansa Blg. 37 is explicit that only natural persons or individuals are liable to the final capital gains tax prescribed therein. Such being the case, the gains derived by Victoria Poultry Farms, Inc., from the aforesaid sale of its real properties are not subject to the final capital gains tax prescribed by Section 34(h) of the Tax Code, as amended, but to the ordinary corporate income tax prescribed under Section 24(a) of the same Code, as amended. cdtech Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue