Request for Tax Clearance in Order that the Title to a Parcel of Land Bought from Inter-Asian Pacific (Phil) Realty Development Corporation may be Registered

October 25, 1995 BIR RULING NO. 168-95 50 (b) 000-00 268-95 Mrs. Leonides E. Paano Lot 2, Block 2, Kimco Village Subdivision, Tandang Sora District Quezon City M a d a m : This refers to your letter dated April 19, 1995 requesting for a tax clearance in order that the title to a parcel of land which you bought from Inter-Asian Pacific (Phil) Realty Development Corporation may be registered in your name. cdta It appears that on September 8, 1980, a contract to sell was executed by and between Inter-Asian Pacific (Phil) Realty Development Corporation and you covering Lot No. 2, Block No. 2, Kimco Village Subdivision containing an area of 423 square meters covered by TCT No. 260929 of the Registry of Deeds for the Metro-Manila District II situated at Mindanao Avenue, Quezon City for a consideration of One Hundred Twenty Six Thousand Nine Hundred Pesos (P126,900.00); and that in 1994 a Deed of Absolute Sale was executed in your favor by Inter-Asian Pacific (Phil) Realty Development Corporation covering the aforesaid property. In reply, please be informed that the aforementioned sale transaction is subject to the creditable withholding tax of One and One-Half Percent (1.5%) under Section 1(i)(1) of Revenue Regulations No. 12-94, amending Revenue Regulations No. 6-85, as amended, otherwise known as the Revised Expanded Withholding Tax Regulations and documentary stamp tax when the final Deed of Sale is executed by Inter-Asian Pacific (Phil) Realty Development Corporation in your favor. As the individual buyer, you are constituted as the withholding agent for purposes of creditable withholding tax on the sale (Section 2, R.R. No. 12-94, supra). Moreover, no certificate authorizing registration (CAR) shall be issued by the appropriate internal revenue official, unless the Confirmation Receipt or official receipt evidencing payment of the creditable withholding tax and documentary stamp tax on the particular transaction is presented to him (Section 7, Revenue Memorandum Circular 7-90) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. cdti Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue