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BIR Ruling No. DA-151-07 (Tax Implication of Dacion en pago in favor of a Bank)

BIR Ruling No. DA-151-07

BIR Ruling No. DA-151-07 | 2007-03-13

DA 040-03

Ms. Jona Ruth G. Alonte
Revenue District Officer
Revenue District No. 74
Iloilo City

M a d a m :

This refers to your letter dated February 5, 2007 requesting for an opinion as to whether or not the dacion en pago executed by Bacolod Commercial & Industrial Park, Inc., as Debtor/Mortgagor, over a portion of the 200,000 square meters of the reclamation area or consisting of 99,000 square meters, in favor of Metropolitan Bank & Trust Company, is subject to the capital gains tax of 6% pursuant to Section 27 (D) (5) of the Tax Code of 1997 and to the corresponding documentary stamp tax of 1.5% based on the consideration or value...