BIR Ruling No. 204-13

June 13, 2013 BIR RULING NO. 204-13 Carreno P. Mismisen No. 106 Purok 11, Upper Pinget Baguio City Sir : This refers to your letter dated February 12, 2013 wherein you requested for exemption from payment of Capital Gains Tax and Documentary Stamp Tax on the registration of a Voluntary Partition between you (Mismisen) and the other co-owners of a parcel of land. TCaSAH It is represented that Mismisen together with other individuals agreed to buy a land registered in the names of Arturo Calubad and Antonio Keh which is covered by Transfer Certificate of Title (TCT) No. 016-2011001015, their respective individual shares are as follows: Names Address Area (in sq. m.) Salvador M. Lacad T. Alonzo St., Malabanias, Angeles City 200 Veronica B. Dadsa-ag Irisan, Baguio City 200 Winston S. Sapdoy Pinget, Baguio City 200 Roldan L. Marcelino Pinget, Baguio City 200 Marlon M. Pagedped Marcos Highway, Baguio City 200 Danilo D. Mangigil, Jr. Pinget, Baguio City 200 Mariano A. Gorio Bun-ayan, Sabangan, Mt. Prov. 200 Frankie D. Suvilla Km. 3 La Trinidad, Benguet 200 Luzviminda B. Cabforo Irisan, Baguio City 200 Crispin B. Moc-eng Lagaw, Bauko, Mt. Prov. 200 Nida L. Sapdoy Pinget, Baguio City 200 Felimon B. Cacap Quezon Hill, Baguio City 200 Alfredo M. Padsoyan Pinget, Baguio City 200 Roger M. Padsoyan Pinget, Baguio City 200 Junifer M. Tingay Sabangan, Mt. Prov. 200 Joel K. Bacani Pinget, Baguio City 200 Haidee M. Tengay Pinget, Baguio City 200 Anesita P. Luis Pinget, Baguio City 200 Nida L. Sapdoy Pinget, Baguio City 200 Joseph C. Sapdoy Pinget, Baguio City 200 Jonalyn B. Cangyas Bangad, Tinglayan, Kalinga 200 Elvis L. Danglose Pinget, Baguio City 200 Jovelyn A. Racraquin Pinget, Baguio City 200 Sharon B. Samidan Camatagan, Sabangan, Mt. Prov. 200 Lino B. Domngal Pinget, Baguio City 200 Jenny Claire G. Mangacheo Pinget, Baguio City 200 Reginald M. Balidoc Pinget, Baguio City 200 Severino G. Khita Pinget, Baguio City 400 Gaspar L. Tingga-an Pinget, Baguio City 200 Hamilton G. Khita Pinget, Baguio City 200 Miller B. Edwas, Jr. Abatan, Buguias, Benguet 200 Tomas L. Tingga-an Pinget, Baguio City 200 Albert C. Mangigil Pinget, Baguio City 200 Carreno P. Mismisen Pinget, Baguio City 400 Robert L. Tingga-an Dizon Subdivision, Baguio City 200 Dalmacio C. Mangigil Pinget, Baguio City 200 Carfer B. Esden Pinget, Baguio City 200 Victoriano G. Balidoc Pinget, Baguio City 106 Jerry M. Tengay Pinget, Baguio City 200 It is further represented that for their convenience in transacting with the vendors, the aforementioned individuals (trustors) agreed to appoint one of them in the person of Mismisen (trustee) to be named as the vendee in deed of sale so as to avoid inconvenience and expenses for the others to be travelling to Manila just to sign the deed of sale and other pertinent documents. On December 6, 2011, a Deed of Absolute Sale covering the same TCT was executed with Mismisen as vendee. As a consequence, a new title, TCT 016-2012000220 was issued to Mismisen. The agreement between the trustors and the trustee was registered with the Registry of Deeds after the new Transfer Certificate of Title was issued in the name of Mismisen. On January 28, 2013, a contract of voluntary partition was executed by the co-owners. In reply thereto, please be informed as follows: The transfer of title over the aforesaid property by Mismisen (trustee), in favor of the other co-owners (trustors), the beneficial owners thereof, to be effected through a Deed of Voluntary Partition is not subject to capital gains tax imposed under Section 24 (D) (1) of the National Internal Revenue Code of 1997, as amended, (NIRC) considering that the transfer is not for monetary consideration but merely acknowledges and confirms the title and ownership over the above-mentioned properties of the trustors. Finally, the Deed of Voluntary Partition executed by and between Mismisen and the other co-owners, whereby the former will convey to the latter the above-mentioned property without monetary consideration is likewise not subject to the documentary stamp tax imposed under Section 196 of the NIRC. However, the notarial acknowledgment is subject to the documentary stamp tax of P15.00 under Section 188, supra . 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. TIcAaH Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue