BIR Ruling No. 483-2021

iikpubi.k:OF fhe Philippines DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City Sees. 2& 10 of RA No.4726; Sec. of the Tax Code of 1997,is amended; Sec. 1^5 ofRegulation No.26; BIR Rililing No.474-19 OT - M 3 - 2 I) 2 ^ 13EC I j 2021 HOTEL AURELIO,INC. Roxas Boulevard, Padre Faura. Ermita, Manila AttentUm Atty. Neil L.Salcedio Counsel Gentlemen: 1 This refers to your reques:for.i ruling that the transfer or coriveyance ofreal properties with Transfer Certilicate ofTitle(TCT)Nos. and . by Aurelio Hotel,Inc.(AHI) in favor ot Aurelio Condominium CoDoration(ACC),is exemptfrom paymentofcapital gains tax (COT), documentary stamp tax (DST) and any .)ther taxes under the National Internalj Revenue Code(Tax Code)of1997.ae amended. It is represented that AHI is a corporation dulv organized arid existing under the laws ofthe Philippines, with principal office address at Roxas Blvd., P. pliura, Ermita, Manila;that it is the registered owner/developerofan Eighty-One(81)unitcondcjminium project known as the "Plaza Tower Condominium",lcc�ted at#1175 Guerrero St., Ermita, Manila and is covered by TCT Nos. i and that the Master Deed with Declaration of Restrictions of ACC, which was executed on Februa y 10, 1982, stales that the common areas of the project shall include the parcels ofland coveied by TCT Nos. and j ;and that AHI and ACC executed a Deed of Conveyanct dated October 1, 2021 transfi^rring the ownership over the aforesaid parcels ofland iVom AW.to ACC. In reply,please be informed Lh.it since the conveyance is withdutconsideration to ACC, no taxable income will be generated ind therefore, no CGT oi credjitable withholding tax is payable and collectible. The purpose ofthe conveyan-:e to ACC is lor the management ofthe project for the common benefit cf the unit owners pursuant to Sections 2 and 10 of Republic Act No.4726,to wit: Section 2. A condominium is u.i interest in reai property consi,^sting qfsepaniie interest in a unit in a residendal, industrial or commercial building and an undivided interest in common, directly or indirectly, in the land on which it is located and in other cottimtri areas of the building. ,1 condotniniiun may include, in addition, aseparaii irnerest in other p(}rtions ofsuch realproperty. Title to thecommon areas,ifuInu'mg theland,or the appurtenantinterests in such areas, may be held by ii corpv,r(iti()n sfiecially formed for the purpose (hereinafter known as the "ccndominiiuu corporation")in wl^tich the holders of sepatate itUetest shall atticmut.'ccdly he itietnhers or siiareholders, to the exclusion ofothers, in profuw.'i'm the appurtenant interest of their respective units in the common areas.