BIR Ruling No. 259-82

October 13, 1982 BIR RULING NO. 259-82 34-g 000-00 259-82 Mr. Rodrigo T. Janeo, Jr. 16 G.E. Antonio St. BF Homes Subdivision Bo. San Dionisio Paraaque, Metro Manila Dear Mr. Janeo : This refers to your letter dated November 16, 1981, requesting certification that the capital gains realized by your client, Mr. Cheng Yung-Li is exempt from capital gains tax imposed by Section 34(g) of the Tax Code, as amended in accordance with BIR Ruling No. 34-g-083-81-102-81 dated July 1, 1981. It is represented that your client is a citizen of the United Kingdom and a resident of Kowloon, HongKong; that he owns 2,168 shares of stock of the Hawaiian Phil. Co., covered by certificates of stocks Nos. N2111, N2168, N2248, N2338, N2411, N2566, N2674 and N2777, acquired at par value of P10.00 per share between the period from May 27, 1970 to December 20, 1979; that he intends to sell the above shares of stock at P15.00 per share. In reply, I have the honor to inform you that in the above-mentioned ruling, this Office held that under Section 4, Art. 12 of the RP-UK Tax Treaty, residents of the United Kingdom of Great Britain and Ireland are not subject to the capital gains tax imposed by Section 34(g) of the Tax Code. Considering that under Art. 3 of the said Tax Treaty, the term "United Kingdom" means Great Britain and Northern Ireland, and since HongKong is not a part of Great Britain and Northern Ireland, it follows that residents of HongKong are not considered residents of the United Kingdom. In view thereof, this Office believes and so holds, that your client who is a resident of HongKong is not exempt from the capital gains tax in question under the RP-UK Tax Treaty. cdtech Very truly yours, RUBEN B. ANCHETA Acting Commissioner