GSIS Not Subject to Final Capital Gains Tax

December 19, 1986 BIR RULING NO. 279-86 21 (e) 159-85 279-86 Gentlemen : In reply to your letter dated July 14, 1986, I have the honor to inform you that Section 21(e) [formerly Section 34(h)] of the Tax Code, as amended by Executive Order No. 37 is explicit that only natural persons or individuals are liable to the final capital gains tax prescribed therein. Such being the case, the GSIS is not subject to the final capital gains tax prescribed by said Section 21(e) of the Tax Code, as amended. Moreover, the GSIS, its assets, revenues including all accruals thereto, and benefits paid shall remain exempt from all taxes, assessments, fees charges or duties of all kinds. (BIR Ruling No. 062-86 dated May 16, 1986). Likewise, pursuant to Memorandum Order No. 42 dated September 26, 1986, the GSIS is exempt from the payment of tax on its taxable income. Finally, in view of the foregoing tax exemption of the GSIS, the requirement prescribed in the last paragraph of Section 50(a)(4) [formerly Section 34(h)] of the Tax Code, as amended, quoted as follows: "No registration of any document transferring real property shall be effected by the Register of Deeds unless the Commissioner of Internal Revenue or his duly authorized representative has certified that such transfer has been reported and the tax herein imposed, if any, has been paid." need not be followed as regards the deed of sale and consolidation of title executed by the GSIS which are submitted for registration with the Register of Deeds concerned. aisadc Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue