Taxability on the Sale of Real Properties

July 26, 1988 BIR RULING NO. 353-88 21 (e) 000-00 353-88 S i r : This refers to your letter dated July 12, 1988 requesting a ruling on the following facts involving the sale to you of real properties located at Binondo, Manila: cdt "1. On April 1984, the Administratrix of the late Benito H. Lopez of Iloilo City, owner of the property, sold to me under a Deed of Absolute Sale, executed before Notary Public Vicente G. Villamil of Manila; "2. I paid the corresponding taxes on this transaction as shown in the BIR Certification at the back of the documentary; "3. It turned out that the sale has yet to be approved by the Hon. Court of Iloilo City where the Intestate Proceeding of the late Benito H. Lopez is pending hearing. So the Administratrix had to file with the Hon. Court the necessary petition for authority to sale the property and for approval of the Deed of Absolute Sale of the property to me. But because the original copy of the Deed of Absolute Sale of property was already in my possession, having fully paid for it already, the Administratrix file a new Deed of Absolute Sale by merely copying the duplicate original in her possession, to obviate further delay of the transfer of ownership to me which I had been demanding for quite a long time; "4. The new Deed of Absolute Sale which was executed only on May 17, 1968 before Notary Public James J. Beltran of Iloilo City was submitted to the Hon. Court of Iloilo City for approval and the latter approved the sale; and "5. The Register of Deeds of the City of Manila would not register the Deed of Absolute Sale dated May 17, 1988 because of the absence of the Certification of the Bureau of Internal Revenue that the Corresponding taxes have been paid on the transaction, although I have presented to him the Certification to the BIR on the Deed of Sale in 1984, and explained to him the facts attending to the case". In reply, please be informed that since you have already paid the amount of P13,401.60 as capital gains tax under Confirmation Receipt No. B14432991 dated June 2, 1988 and the amount of P922.00 as documentary stamp tax under Confirmation Receipt No. B14432992 dated June 2, 1988 which was due on the Deed of Absolute Sale executed by Miss Lawaan H. Lopez as the Administratrix of the Intestate Estate of the late Benito H. Lopez in your favor on April 24, 1984 involving real properties covered by TCT No. 8314 and OCT No. 3685 situated at Binondo, Manila, you are no longer required to pay the capital gains tax and the corresponding documentary stamp tax on the Deed of Absolute Sale executed by Miss Lawaan H. Lopez in your favor on May 17, 1988 involving same properties for the same amount of consideration. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner