Tax Consequence of the Transfer of an Agricultural Landholdings

August 9, 1988 BIR RULING NO. 380-88 21 (a) 1 100-88 380-88 S i r : This refers to your letter dated August 8, 1988 requesting exemption from the payment of capital gains tax on the transfer of your agricultural landholdings in favor of the Republic of the Philippines pursuant to Section 9 of 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 and your wife Marilou Z. Tarun are exempt from the payment of capital gains tax and documentary stamp tax on the sale of your agricultural landholdings located at Fugu-Casibarag Sur, Cabagan, Isabela covered by TCT No. 149086 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. cdt Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner