Sale of Agricultural Land to the Government is Exempt from Capital Gains Tax and Documentary Stamp Tax

November 8, 1991 BIR RULING NO. 239-91 21 (e) 380-88 239-91 S i r : This refers to your letter dated October 25, 1991 requesting exemption from the payment of capital gains tax on the voluntary sale of your agricultural land consisting of 207,174 hectares located in Tallag, Cabagan, Isabela, covered by Transfer of Certificate of Title No. T-118560, issued by the Register of Deeds of Isabela, in favor of the Republic of the Philippines pursuant to Section 9 of Executive Order No. 229. In reply, I have the honor to inform you that pursuant to Section 9 of Executive Order No. 229, the government shall purchase all agricultural lands it deems productive and suitable to former cultivation voluntarily offered for sale to it at a valuation determined in accordance with Section 6 of the said Executive Order. Such transaction shall be exempt from the payment of capital gains tax and other taxes and fees. Accordingly, you are exempt from the payment of capital gains tax and documentary stamp tax on the sale of your said agricultural land in favor of the Republic of the Philippines. Moreover, this Office shall issue the certification authorizing the transfer of title to the purchaser thru the Revenue District Officer having jurisdiction over the place where the real property sold or disposed of is located. Very truly yours, (SGD.) JOSE U. ONG Commissioner