BIR Ruling No. 552-2017

BUREAU OF INTERNAEREVENUE REPUBLIC OF THE PHH IPPINES DEPARIMENT OF FINANCE

RA 3844,as amended by RA 6657 BIR Ruling No. 288-14

t 552-2017

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Brgy. Sulivan, Baliuag MARIANO D. SALAZAR Bulacan

Dear Mr. Salazar,

saie of a parcel of land executed on 14 May 2012 by the Land Bank of the Philippines ("LBP") in your favor pursuant to Republic Act (R.A.) 3844, otherwise known as the "Agricultural Land Reform Code." This refers to your request for exemption from capital gains tax ("CGT") on the

Based on the documents submitted. it is shown that Mr. Salazar was awarded a

Bulacan, more particularly described as follows: parcel of land as farmer-beneficiary under R.A. 3844 through the Department of assignment in favor of Mr. Salazar of Lot No. 330. Plan No. Transfer Certificate of Title No. Agrarian Reform (DAR) Order dated 5 July 2010 confirming the designation and (T of the Register of Deeds of and covered by

plan (LRC) Pcs-11324, Sheet 2. being a portion of the consolidation of Lots 2662. 2766, 4061 and 2672. Baliuag Cadastre. LRC Cad. Rec. No. 787) situated in the Barrios of Tilapayong and Sullivan, Municipality of Baliuag, Province o Bulacan containing an area of Five Hundred Twenty (520) sq. m. "A parcel of land (Lot 330, of the consolidation-subdivision

the total amount of Five Hundred Twenty Pesos (Php520.00). Philippines and Mr. Salazar executed a Deed of Sale dated 14 May 2012 whereby the former conveyed to the latter the above-described property for and in consideration of To effect the transfer of the subject parcel of land, the Land Bank of the

Section 66 of Republic Act (RA) No. 6657, otherwise known as, the "Comprehensive Agrarian Reform Law of 1988" which provides. viz: In reply, please be informed that the transfer is exempt from CGT pursuant to

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Page 2 of 2 Maiano D. Salazar 11-24-2017

"Sec. 66. Exemption from Taxes and Fees of Land Transfers Transactions under this Act involving a transfer of ownership, whether

capital gains. These transactions shall also be exempted from the payment of registration fees, and all other taxes and fees for the comveyance or from natural or juridical persons,shall be exempted from taxes arising from transfer thereof. Provided, that all arrearages in real property taxes,

which the owner may be entitled. " without penalty or interest, shall be deductible from the compensation to

area of 520 sq.m.covered by TCT No. Mariano D.Salazar is the actual occupant of Lot 330,Pcs-11324,with an aggregate The records include a Certification dated August 27,2013 certifying that Mr I located at Tilapayong

Philippines. and Sulivan, Baliuag, Bulacan. The Certification further states that said property is covered under RA 3844 and acquired by the government through Land Bank of the

square meters (520 sq.m.) property covered by TCT No. transfer of land to a qualified farmer beneficiary is still considered one of the transactions contemplated under Section 66 of RA 6657.Accordingly,the transfer by Land Bank of the Philippines to Mr. Mariano D.Salazar of the five hundred twenty Only Section 35 of RA 3844 was expressly repealed by RA 6657.Thus,the Is exempt from capital gains tax and documentary stamp tax pursuant to the aforecited provision. (BIR Ruling No.288-14 dated July 9,2014)

However, if upon investigation,it will be disclosed that the facts are different, then this ruling shall be considered null and void. This ruling is being issued on the basis of the foregoing facts as represented.

Very truly yours.

iewsalwe CAESAR R.DULAY

Cc: Regional Director Revenue Region No.5, Caloocan City Commissioner of Internal Revenue M 011364

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