Taxability of the Proceeds from Sale of One's Land to the Land Tenure Administration

November 5, 1958 BIR RULING NO. 675-58 Mr. Jose V. Guanzon 82 Rodriguez Avenue Bacolod City S i r : In reply to your letter requesting information as to the taxability of the proceeds from sale of one's land to the Land Tenure Administration, I have the honor to inform you as follows: aisadc The pertinent portion of Section 22 of Republic Act No. 1400, otherwise known as the Land Reform Act of 1955 which created the Land Tenure Administration reads as follows: "Section 22. Exemption from tax . . . . The purchase price paid by the Government for any agricultural land acquired for resale to tenants under the authority of this Act, whether through negotiation or expropriation, shall not be considered as income of the landowner concerned for purposes of the income tax." Accordingly, the proceeds from the sale of agricultural land, received by the owners thereof, the sale having been executed in accordance with the provisions of the aforesaid Act, are exempt from the income tax. LLphil Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue