Tax Imposed on the Deed of Sale of Mining Claims

July 8, 1959 BIR RULING NO. 333-59 The Regional Director Regional District No. 7 Cebu City S i r : This is in connection with your 1st Indorsement dated June 5, 1959 requesting the opinion of this Office on the question of whether or not the deed of sale of mining claims is subject to the documentary stamp tax prescribed in section 233 of the National Internal Revenue Code. LLjur Section 233 of the Tax Code provides in part as follows: "SEC. 233. Stamp tax on deeds of sale and conveyances of real property . On all conveyances, deeds, instruments or writings, other than grants, patents, or original certificates of adjudication issued by the Government, whereby any lands, tenements, or other realty sold shall be granted, assigned, transferred or otherwise conveyed to the purchaser or purchasers, or to any other person or persons designated by such purchaser or purchasers, there shall be collected a documentary stamp tax at the following rates: . . ." Pursuant to the above quoted provision of the Tax Code, any document conveying real property sold is subject to the documentary stamp tax prescribed therein. The question now is Is the mining claim a real or personal property? Article 415 of our Civil Code enumerates those that may be considered immovable or real property. Amount these enumerated are "mines, quarries, and slag dumps, while the matter thereof forms part of the bed." Mines are, therefore, real property while they still form part of the land. The instant case, however, does not involve the sale of the mines or mineral land but only the right to extract the minerals therefrom. Rights are neither real nor personal property. Their classification, however, follows that of the things or objects over which they are exercised. Since the instant case involves the sale of mining claims or of rights over mineral lands which are real property, the same is a sale of real property. Hence, the document evidencing the sale thereof is subject to the documentary stamp tax prescribed in section 233 of the Tax Code. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue