BIR Ruling No. 200-11

June 29, 2011 BIR RULING NO. 200-11 Section 32 (B) (6) (a) of NIRC of 1997, as amended; Section 27 (D) (5) of NIRC of 1997, as amended; Section 2 (t) of Revenue Bulletin 01-03 Private Education Retirement Annuity Association 16th Floor Multinational Bancorporation Centre 6805 Ayala Avenue, Salcedo Village Makati City Attention: Ms. Bernadette M. Nepomoceno President Gentlemen : This refers to your letter dated September 9, 2009 requesting for a general certification/ruling that income to be derived by the Private Education Retirement Annuity Association (PERAA) from the sale of its condominium units in Alabang and Makati are exempt from the payment of capital gains tax pursuant to Section 27 (D) (5) of the Tax Code of 1997. It is represented that PERAA is an employees' trust and retirement fund established under Section 32 (B) (6) (a) of the Tax Code of 1997; that it is the registered owner of various condominium units; and that PERAA proposes to sell these units, hence this request. In reply, this Office is of the opinion that the request for ruling is based on a hypothetical situation, PERAA is securing a "general certification of exemption" from capital gains tax which it can use "should there be an interested buyer" of its Alabang/Makati properties. The request is a no-ruling area and it is hereby DENIED based on Section 2 (t) of Revenue Bulletin 01-03. THaDAE Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue