Exemption from the Payment of DST and Transfer Tax

November 16, 1989 BIR RULING NO. 230-89 196 000-00 230-89 S i r : This refers to your letter dated September 6, 1989 stating that the Municipality of Mandaluyong is now in the process of transferring title of ownership over Lot No. 2-G-1 of the Paraiso Estate located at Mandaluyong which it acquired from the Roman Catholic Archbishop of Manila for and in consideration of P1,500,000.00 relative to its ongoing Land for the Landless Project; that said lot has an area of 9,943 square meters and was distributed to qualified tenants/occupants last February 1987 at a price of P183.60 per square meter; that the distribution of the individual Certificate of Title to each of the 112 awardees is projected to be implemented before December 25, 1989 with the presence of Her Excellency President Corazon C. Aquino; and that the Municipality of Mandaluyong has no budget for said transaction. cdt Based on the foregoing representations, you now request exemption from the payment of the documentary stamp tax and transfer tax on the aforesaid sale transaction. In reply, please be informed that your request for exemption from the payment of the documentary stamp tax cannot be granted for lack of legal basis. Moreover, assuming that you are exempt from tax, the other party which is not exempt shall be directly liable for the payment of the tax. (Sec. 173, Tax Code) As regards your request of exemption from the payment of transfer tax on the aforementioned sale transaction, it is informed that this Office has no jurisdiction on this matter. cdta Very truly yours, (SGD.) VICTOR A. DEOFERIO, JR. Deputy Commissioner