Bureau of Local Government Finance Opinion

July 21, 2000 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION The City Treasurer and The City Assessor Manila M a d a m : This refers to the request of the Intramuros Administration (IA), for a certification for exemption from payment of real property taxes due on its real property involving a parcel of land with an area of 5,432 sq.m., including an endorsement for waiver on the payment of . . . transfer tax (among others) . . . so that the property be titled to Intramuros Administration." It appears that IA was created pursuant to Presidential Decree No. 1616, which falls under the Category of a regular agency of the National Government formerly attached to the then Ministry of Human Settlements and now attached to the Department of Tourism. As regards the request for exemption from payment of real property taxes, attention is invited to the 1st Indorsement dated August 24, 1994 of the Department of Finance, copy attached, which clarified that: "the burden of the payment of the real property taxes on the subject real property ceases at the date the same was actually transferred or taken over by the government, particularly the Bureau of Treasury, notwithstanding the pendency of the transfer of the said CCTs to the aforementioned government agency." As regards the issue on the payment of transfer tax, the same is likewise deemed meritorious considering that PD 231, the Local Tax Code, as amended (the law in force when the Deed of Transfer was executed) provides that the transferee is liable to pay the said tax. In this case, however, IA being the transferee, is exempt from payment of all taxes being a regular agency of the government. CIAHaT Be guided accordingly. Very truly yours, (SGD.) ANGELINA M. MAGSINO Deputy Executive Director Officer-In-Charge