BIR Ruling [UN-194-95]

May 23, 1995 BIR RULING [UN-194-95] Metropolitan Manila Development Authority MMA Building, EDSA cor. Oronse St. Guadalupe, Makati City Attention: Mr . Prospero T . Oreta Chairman Gentlemen : This refers to your letters both dated May 17, 1995 stating that you are intending to sell your two (2) parcels of land situated along Doa Julia Vargas Avenue, Pasig City thru public bidding; and that you are exempt from the payment of real property taxes. Based on the foregoing representations, you are now requesting in effect for a ruling as to whether or not you are subject to the capital gains tax and/or other taxes in connection with the said sale of your properties; and information relative to the creditable withholding tax under Revenue Regulations No. 12-94 on income payments paid to government corporation/entities. In reply, please be informed that Presidential Decree No. 1931 dated June 11, 1984 has withdrawn the tax and duty exemption privileges, including the preferential tax treatment of all units of government, i.e., the National Government, its agencies and political subdivisions, as well as the government-owned or controlled corporations. Corollary to this, Executive Order No. 93 effective March 10, 1987 withdrew all tax and duty incentives granted to government and private entities subject to certain exceptions. In view thereof this Office is of the opinion as it hereby holds that while you are not subject to the creditable expanded withholding tax under Revenue Regulations No. 12-94, you are still subject to the tax on the net gain realized from the sale pursuant to Section 24 of the Tax Code, as amended. (BIR Rulings No. 034 94 dated February 7, 1994) cdt Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)