Bureau of Local Government Finance Opinion

June 25, 2001 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully returned to the Provincial Assessor of Albay, Legaspi City, his within letter dated February 1, 2001 requesting opinion/ruling concerning the taxability of the real property owned by Philippine Postal Corporation (PPC) and Bayan Telecommunication, Inc. (BAYANTEL). In this connection, please be informed that in a letter dated April 16, 2001, copy enclosed, this Bureau ruled that PPC shall be liable to pay real property taxes beginning January 1, 1993 until December 3, 1997, and shall be exempt effective January 1, 1998 and thereafter, pursuant to R.A. No. 7354 and the withdrawal of exemption provision of R.A. No. 7160; and also Article III(B)(2) of the Manual on Real Property Tax Administration. As regards the taxability of the real properties owned by BAYANTEL, attention is invited to the 2nd Indorsement dated May 8, 1998, copy also enclosed, of this Bureau, treating on a similar subject matter, the dispositive portion of which provides as follows: "On the basis of the aforequoted Section 23 of RA 7925, RCPI/Bayantel as telecommunications franchise holder becomes automatically covered by the tax exemption provisions of RA 7925, which took effect on March 16, 1995." EASIHa ". . . Likewise, all other real properties of RCPI/Bayantel not used in connection with the operation of its franchise shall remain taxable, or subject to the real property taxes imposed by the LGU of LGU's where such properties are located." Be guided accordingly. (SGD.) BENJAMIN A. GERONIMO Executive Director