Request for Exemption from the Payment of Capital Gains Tax on the Voluntary Sale of Agricultural Land to the Republic of the Philippines

October 27, 1992 BIR RULING NO. 314-92 21 (e) 239-91 314-92 Mr. Efren A. Zerrudo 1235 Apreu, San Miguel Quiapo, Manila S i r : This refers to your letter dated Sept. 9, 1992 requesting exemption from the payment of capital gains tax on the voluntary sale of your agricultural land consisting of 160 hectares located in Ajuy, Iloilo, covered by the Original Certificate of Title No. 4806, issued by the Register of Deeds of Iloilo, in favor of the Republic of the Philippines pursuant to Section 9 of the 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 farmer 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 property 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. prll Very truly yours, JOSE U. ONG Commissioner of Internal Revenue