BIR Ruling No. 345-2016

REPUBLICOF THF PHILIPPINES

DEPARIMENTOFFINANCE BUREAU OF INTERNAL REVENUE

S Quezon City

Bureau of Internal Revenue Ruling

Sections 196.RA 8424 345-2016 Person to Contact:Chief. Law Division Tel Nos.926-55-36 /927-09-63

June 302016 Date

MS.FELICISIMA E.ANGELES

Attorney-In-Fact of LUNINGNING ANGELES-BLUM

341 Kaimitoville.Valle Verde 2

Ugong, Pasig City

Madam:

This refers to your letter dated October 14.2015 seeking clarification as to the

correct amount of Documentary Stamp Tax (DST your sister is legally required to

pay her purchase of rcal property from Megaworld Corporation.

Records disclosed that on October 2. 2015. Megaworld Corporation a

corporation duly organized and existing under the Philippine law,sold to your sister a

condominium unit having an area of 36.50 square meters located in Manhattan

Parkview Tower, Araneta Center. Cubao, Quezon City; that the nroncrty is covered

by Condominium Certificate of Title CCT No. computation,the contract price of the property amounted to : that per whereas

the zonal valuation amounted to and the fair market value is at

: and that in the aforesaid sale, the DST was computed based on the

contract price. inclusive of value added tax (VAT).

In reply.please be informed of the provision of Section 196 of the National

Internal Revenue Code of 1997, as amended, provides:

"SEC.196.Stamp tax on Deeds of Sale and Conveyances of Real

Property.-Ou all convevances.deeds.instrnents.or writingsother

tham grants.patents or origidl certificates of adjudication issued b

the Government.wherebv am land.tenement.or other realev sold shull

he granted, ussigned, transferred or otherwise conveved to the

purchaseror purchasers.or to amv other persom or persons

designated hv such purchaser or purchasers,there shall be collected a

documentory stamp tax.at the rutes herein hetow prescribed bused on

the consideration contracted to be pand for such realty or on its fuir

mrket value determined m accordmce wuh Section 6tEi of this Code

whichever is higher Provided. That when one of the contrac tmg

parties is the Government the tax herein umposed shall he hased on the

actudl consuderation

042685

Pe e

R he cwdre ar san neod wmrawd ta hned h s oaln fr muking a m r CneenpePcne0

Fr ca dndOme nmd Pes P r pchromewes aO thopwPlw

mna r cFe 15.

X3

Based an the foregoing the tax base m computing the DST is the hher amoum berween the consideration contracted to he paid for such realry in the ameont

B finciusive of VAT or the fair market valu dtrmin n

cordance ith Sccton 6 of the Cde which is Thoreonethe

computation of the DST shall he hased on the hight amount O

compucd by1e RXo.40-Cuhao

Thus.your claim for tax refund on the alleged exoess puyment of D has ao

cgal bsis

This ruling is being issued on the basis of the foregoing facts as repne sente

However.if upon investigation. it will be disclosed that the facts are different. then

this ruling shall be considered null and void.

Very truly yours.

KIMS.JACINTO-HENARFS

Commissioner of Intermal Revenue

KI-wpm 04268 W 01