Copyright 1994-2012 CD Technologies Asia, Inc. Taxation 20111
June 25, 2010BIR RULING [DA-(C-027) 112-10]Sec. 27 (D) (5) & RR
17-2003; BIRRuling No. 060-92, DA-237-05,DA-333-06 &
DA-508-06Limcoma Rural Bank, Inc.San Jose, BatangasAttention: Ms.
Rufina S. SalasManaging Director Gentlemen :This refers to your
letter dated March 23, 2010 requesting for legal opinionon the
reckoning date for the payment of capital gains
tax.Asrepresented,youacquiredarealpropertyfromthePhilippineDepositInsuranceCorporation(PDIC)throughapublicbiddingheldonDecember14,2009.Youpaidthebiddingdepositonthe
said date. You received the
CertificateofAwardandwasgiveninstructiontosettlethebalanceofthebidpriceonDecember
22,
2009.PDICpreparedallthenecessarypapersandyoureceivedthenotarizedDeedofSaledatedFebruary19,2010onMarch4,2010.Youpaidthedocumentarystamptaxandthecapitalgainstax(CGT)onMarch5,2010andMarch
8, 2010,
respectively.TheheadoftheassessmentdivisionofBIRDistrictOfficeNo.59inLipaCitymaintainsthatyouhavetopaypenaltiesforlatepaymentofCGTbasedonthe
date of the full settlement of the bid price on December 22, 2010
although theDeed of Sale had not been issued.aTICAcYou are,
however, of the opinion that the date of reckoning for the
paymentof said tax should be the date of the Deed of Sale on
February 19,
2010.Inreply,pleasebeinformedthatRevenueRegulations(RR)No.17-2003,providing,
among others, the policy that the capital gains tax on the sale,
exchangeCopyright 1994-2012 CD Technologies Asia, Inc. Taxation
20112 or other disposition of real property classified as capital
assets shall be collected asa final withholding tax, states as
follows:"SECTION 5.ReturnsandPaymentsofTaxesWithheldatSource.
Section 2.58 of Revenue Regulations No. 2-98, as amended, ishereby
further amended to read as follows:"Sec.
2.58.ReturnsandPaymentofTaxesWithheld at Source.
(A)Monthlyreturnandpaymentoftaxes withheldat source. (1). .
.(2)WHEN TO FILE (a) For both large and non-large
taxpayers,thewithholdingtaxreturn,whethercreditableorfinal(includingfinalwithholdingtaxesoninterestfromanycurrencybankdepositandyieldoranyothermonetarybenefitfromdepositsubstitutesandfromtrustfundsandsimilararrangements)shallbefiledandpaymentsshouldbemade,withinten(10)daysaftertheendofeachmonth,exceptfortaxeswithheldforthemonthofDecemberofeachyear,whichshallbefiledonorbeforeJanuary15ofthefollowingyear;andexcept
for the final capital
gainstaxonthesaleorotheronerousdispositionofrealpropertyconsideredascapitalassetwhichmustbetaken/withheldfromthesellerbythebuyerandremittedwithinthirty(30)daysfromthedateofnotarizationofthetransferdocumenttothecollecting
agent of the RDO having jurisdiction overthe place where the
property is located."xxxxxxxxx" (Emphasis
provided.)Inviewoftheforegoing,thisOfficeisoftheopinionthatthereckoningdateforthepaymentof
capital gains tax is the date of notarization of the
transferdocumentorinthiscase,theDeedofSale(BIRRulingNos. 060-92,
DA-237-05datedMay31,2005,06*(1)datedMay19,2006,DA-508-06datedAugust24,2006)Thisrulingisbeingissuedonthebasisoftheforegoingfactsasrepresented.However,ifuponinvestigation,itwillbedisclosedthatthefacts
areCopyright 1994-2012 CD Technologies Asia, Inc. Taxation 20113
different, then this ruling shall be considered as null and
void.DcCHTaVery truly yours,Commissioner of Internal
RevenueBy:(SGD.) GREGORIO V. CABANTACDeputy Commissioner Legal and
Inspection GroupCopyright 1994-2012 CD Technologies Asia, Inc.
Taxation 20114 Endnotes1 (Popup - Popup)* Note from the Publisher:
Copied verbatim from the official copy.
