BIR Ruling No. 190-11

June 23, 2011 BIR RULING NO. 190-11 Section 2 (t), Revenue Bulletin No. 01-03; BIR Ruling No. DA-394-04 dated July 21, 2004 Ms. Angelina A. Barrera 22 Sta. Rosa Magallanes Village Makati City 1232 Madam : This refers to your letter dated 8 April 2011 wherein it is represented that you are the registered owner of a 113 sq.m. lot with a 3-storey building located at 345 Dasmarias St., Sta. Cruz, Manila, covered by TCT 73817 of the Registry of Deeds, City of Manila; that subject property was acquired in 1964 and became vacant by 2000; that subject property was repaired sometime 2002-2003; that subject property remained unoccupied, and completely disconnected of all utilities (MERALCO, Maynilad, PLDT, etc.) since 2003; that subject property was recently intruded into and extensively vandalized/looted; that you now fully intend to sell the subject lot and building as is where is. HCaDET In connection with the foregoing, you are requesting for a ruling on whether the sale of your property is subject to capital gains tax and documentary stamp tax and not to a creditable withholding tax and value-added tax. In reply, please be informed that this Office cannot as yet issue a determinative ruling on the above matter considering that the issue is based on hypothetical situation, which is considered as a "No-Ruling Area" pursuant to Section 2 (t) of Revenue Bulletin 01-03. (BIR Ruling No. DA-394-04 dated July 21, 2004) Section 2 (t) of Revenue Bulletin 01-03 provides: "SECTION 2. List of No-Ruling Areas . The following shall hereby be construed and identified as "No-Ruling Areas": t) Request for rulings on issue/s or transactions based on hypothetical situations;" Be that as it may, we would be glad to assist you should you request for a ruling when the sale of the subject lot and building becomes final. Please be guided accordingly. IcHEaA Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue