Course Code and Title: BACR 5 – INCOME TAXATION

Lesson Number : 6

Topic : Capital Gains Taxation

Instructor : Prof. Rosario A. Calamba, CPA,MBM, Phd Cand.

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LEARNING OBJECTIVES

At the end of this module, you are expected to:

1. Explain the rules on classifying assets;

2. Compute for the capital gains tax on sale of real properties;

3. Apply the alternative taxation rule on sale of real properties;

4. Explain the exemption on sale of real properties considered as principal

residence;

5. Compute for the documentary stamp tax on sale of real properties;

6. Compute for the capital gains tax on sale of domestic shares directly to
buyer;

7. Explain the rules on wash sales; and

8. Identify the required forms to be filed and their deadlines.

PRE-ASSESSMENT

Try to answer the following questions.

1. Who do you think pays the tax on a sale of real property?
2. When is a property considered real or personal?
3. What differentiates a capital asset from the ordinary asset?
4. Where are stocks normally bought?
5. How are land parcels valued?

LESSON PRESENTATION

CAPITAL GAINS TAXATION

A capital gains tax is imposed on the capital gain on the sale, exchange and other disposition of
certain capital assets.

ASSET CLASSIFICATION RULES

Ordinary assets are assets directly used in the business, trade or profession of the taxpayer such
as inventory, supply and items of property, plant and equipment. Capital assets include all
other assets other than ordinary assets.
The following are special rules in classifying assets.

1. A property purchased for future use in business is an ordinary asset even though
this purpose is later thwarted by circumstances beyond the taxpayer's control.
2. Discontinuance of the active use of the property does not change its character
previously established as a business property.
3. Real properties used, being used, or have been previously used, in trade of the taxpayer
shall be considered ordinary assets.
4. Properties classified as ordinary assets for being used in business by a taxpayer not
engaged in the real estate business are automatically converted to capital assets
upon showing of proof that the same have not been used in business for more than 2
years prior to the consummation of the taxable transaction involving such property.
5. A depreciable asset is an ordinary asset even if it is fully depreciated, or there is a
failure to take depreciation during the period of ownership.
6. Real properties used by an exempt corporation in its exempt operations are
considered capital assets. Exempt corporations are not business.
7. The classification of property transferred by sale, barter or exchange, inheritance,
donation, or declaration of property dividends shall depend on whether or not
the acquirer uses it in business.
8. For real properties subject of involuntary transfer such as expropriation and foreclosure
sale, the involuntariness of such sale shall have no effect on the classification of such
real property.
9. Change in business from real estate to non-real estate business shall not change
the classification of ordinary assets previously held.

Taxpayers engaged in real estate business includes real estate dealer, real estate developer,
real estate lessor and taxpayers habitually engaged in real estate business.
Taxpayers habitually engaged in real estate business include those registered with the
HLURB or HUDCC as dealer or developer or those with at least 6 taxable real estate sales
transactions in the preceding year

SCOPE OF CAPITAL GAINS TAXATION

However, not all capital gains are subject to capital gains tax, most of them are subject to regular
income tax. The following are the common capital gains transactions taxed under the capital
gains taxation scheme:

1. Capital gains on the sale of domestic stocks directly to buyer

2. Capital gains on the sale of real properties not used in business
ONEROUS TRANSFERS OF REAL PROPERTIES CLASSIFIED
AS CAPITAL ASSET
The sale, exchange, and other disposition of real property capital assets in the Philippines is
subject to a tax of 6% of the selling price or the fair value, whichever is higher.

Under the NIRC, the fair value of real property is whichever is higher of the:

a. Zonal value, which is the value prescribed by the Commissioner of Internal Revenue
for real properties for purposes of enforcement of internal revenue laws; and
b. Assessed value, which is the value prescribed by the City or Municipal Assessor's
Office for purposes of the real property tax

Note that independent appraisal valuation, the fair value commonly used in external financial
reporting, is not used in the computation of the capital gains tax.

Illustration 6.1
Jackie sold a residential house and lot for P6,000,000. She purchased the lot when it was worth
P1,200,000 and a constructed a house on it for P3,500,000. The lot has a zonal value of P2,100,000.
The assessor’s value of the house and lot are P4,000,000 and P2,000,000,
respectively.

The capital gains tax would be

Higher of zonal and assessor’s value of land Assessor’s value 2,100,000
of house 4,000,000
Total Fair Value Selling Price Higher of the Two Tax Rate 6,100,000
Capital Gains Tax 6,000,000
6,100,000
6%
366,000
BIR Tax Clearance
No registration of any document transferring real property shall be effected by the Register of
Deeds unless the Commissioner or his duly authorized representative has certified that such
transfer has been reported, and the capital gains or creditable withholding tax, if any, has been
paid. The certificate for purposes of this legal requirement is referred to as the "Certificate
Authorizing Registration (CAR)".

Nature
Presumption of capital gains
The 6% capital gains tax applies even if the sale transaction resulted to loss. Gain is always
presumed to exist. The basis of taxation is the selling price or fair value whichever is higher, not
the actual gain.

Non-consideration to the involuntariness of the sale

The capital gains tax applies even if the sale is involuntary or is for, circumstances such as in the
case of expropriation sale, foreclosure sale, dispositions by judicial order, and other forms of
forced disposition. It applies to conditional sales and pacto de retro sales

Final tax
The capital gains tax shall be withheld by the seller and remit the same to the government.

Scope and Applicability

The 6% capital gains tax is applicable to all individual taxpayers and to domestic corporations
only. The NIRC did not impose final capital gains tax on foreign corporations. However, in
cases where foreign corporations realize gains from the sale of real property classified as capital
assets, the capital gain shall be subject to the regular income tax.

The sale of real property located abroad is not subject to capital gains tax since withholding of
the capital tax cannot be imposed abroad due to territorial consideration. Hence, the actual
gains realized on the sale, exchange, and other dispositions of properties abroad are subject to
the regular income, z if the taxpayer is taxable on global income such as resident citizens and
domestic corporations. For all other taxpayers, the capital gain realized abroad is exempt.

Alternative Taxation Rule

An individual seller of real property capital assets has the option to be taxed at either 6% capital
g ains tax or regular income tax. It should be noted that this is permissible only when the seller
i s an individual taxpayer, and the buyer is the government, its instrumentalities or
agencies including government-owned and controlled corporations.

The alternative taxation is intended to ease the burden of government expropriation where
taxpayers may incur losses on the forced expropriation sale and are still required to pay tax.
Illustration 6.2
An individual taxpayer bought a house and lot near a highway at a cost of P2,000,000. After
several years, the government invoked its power of eminent domain to buy the property for
the expansion of the highway.

Assuming the property has a fair value of P1,800,000 for purposes of the expropriation, the taxpayer
would be forced to incur P200,000 loss (P1.8M-P2.0M) and still pay the 6% capital gains tax. This
would be too oppressive to the taxpayer. With the alternative regular income tax option, the taxpayer
would be given the benefit of deduction of the P200,000 capital loss without being imposed the 6%
capital gains tax.

Exemption to the 6% Capital Gains Tax under the NIRC

The sale, exchange and other disposition of a principal residence for the re-acquisition of a new
principal residence by individual taxpayers is exempt from the 6% capital gains tax. Principal
residence means the house and lot which is the primary domicile of the taxpayer. If the taxpayer
has multiple residences, his principal residence is deemed that one shown in his latest tax
declaration.

Requisites of exemption:
1. The seller must be a citizen or resident alien.
2. The sale involves the principal residence of the seller-taxpayer.
3. The proceeds of the sale is utilized in acquiring a new principal residence.
4. The BIR is duly notified by the taxpayer of his intention to avail of the tax
exemption within 30 days of the sale through a prescribed return (BIR Form 1706)
and "Sworn Declaration of Intent".
5. The reacquisition of the new residence must be within 18 months from the date of sale.
6. The capital gain is held in escrow in favor of the government.
7. The exemption can only be availed of once in every 10 years.
8. The historical cost or adjusted basis of the principal residence sold shall be carried
over to the new principal residence built or acquired.

It must be emphasized that the sale of principal residence must acquisition of the new principal
residence to be exempt.
 Illustration 6.3
Helen sold her principal residence with a fair market value of P6,000,000 for P5,000,000.
Helen purchased the residence for P3,000,000 several years ago. The imposable capital gains
tax is 6% of P6,000,000 or P360,000.

Helen should indicate her intention to apply for exemption in the capital gains tax return to be filed
and submit a Sworn Declaration of Intent. She will be required to deposit the P360,000 capital gains
tax in an escrow account in favor of the government.

Full Utilization
Assuming Helen acquires a new principal residence for P5,200,000 within 18 months, the P360,000
capital gains tax in escrow will be released to her. If Helen does not acquire a new principal residence
within 18 months, the capital gains tax in escrow will be taken by the government. If the proceeds are
fully utilized, the tax basis of the new residence, which is now at P3,200,000, shall be the basis of the
old residence plus additional cost incurred by the taxpayer in acquiring the new residence. The
additional cost is the excess of the purchase price of the new rest over the selling price of the old
residence.

Partial Utilization
Assume Helen uses only P4,500,000 out of the P5,000,000 proceeds in acquiring her new residence.
The portion representing the unused proceeds shall be subject to tax, thus, only 90% is exempt. Of the
P360,000 deposited in escrow, P324,000 will be remitted to the government and the balance of
P36,000 is released to the taxpayer. Any interest which might have accrued on the escrow fund shall be
released to the taxpayer. The government is entitled to the amount of the unpaid tax only. The similar
percentage is multiplied with the tax basis of the old residence to get the new tax basis of the new
residence, in this case, P2,700,000, which is 90% of P3,000,000.

Capital Gains Tax Exemption under Special Laws

Sale of land pursuant to the Comprehensive Agrarian Reform Program
Sale of land under the Comprehensive Agrarian Reform Program The sale of agricultural lands
by land owners pursuant to the Comprehensive Agrarian Reform Program of the government
shall be exempt from capital gains tax. Similarly, interest income on the selling price that may
have been agreed by the land owner and the tenant-buyer shall he exempt from income tax.

Sale of socialized housing units by the National Housing Authority

The sale of socialized housing units for the underprivileged and homeless citizens by the
National Housing Authority (NHA) pursuant to the Urban Development and Housing Act of
1992 is exempt from the capital gains tax. This exemption is limited to socialized housing units
only. The BIR ruled that the sale of the NHA of commercial lots which is not part of the
socialized housing project for the poor and homeless is subject to capital gains tax or regular tax
and documentary stamp tax. To qualify for exemption, the socialized housing units of the NHA
must comply price ceilings set by the NIRC and other special laws.

Documentary Stamp Tax on the Sale of Real Properties

The sale of real property capital assets is subject to a documentary stamp tax on the gross selling
price or fair market value whichever is higher. The documentary stamp tax is P15 for every
P1,000 and fractional parts of the tax basis thereof. However, if the government is a party to the
sale, the basis shall be the consideration paid.

Illustration 6.4
A taxpayer disposed a real property capital asset acquired for P2,000,000 10 years ago for
P4,000,000. The property has a zonal value of P5,000,000 and declared real property value per
real property tax declaration of P3,000,000.

The documentary stamp tax shall be computed from the fair value since it is higher than the selling
price. Hence, the documentary stamp tax shall be P75,000 computed as P15/P1,000 x P5,000,000.

ONEROUS TRANSFERS OF DOMESTIC STOCKS

Domestic stocks are evidences of ownership or rights to ownership in a domestic corporation
regardless of its features, such as:

1. Preferred stocks
2. Common stocks
3. Stock rights
4. Stock options
5. Stock warrants
6. Unit of participation in any association, recreation, or amusement club

The capital gains tax covers not only sales of domestic stocks for cash but also exchange of
domestic stocks in kind and other dispositions such as:

1. Foreclosure of property in settlement of debt

2. Pacto de retro sales - sale with buy back agreement
3. Conditional sales - sales which will be perfected upon completion of certain
specified conditions
4. Voluntary buy back of shares by the issuing corporation - redemption of shares
which may be re-issued and not intended for cancellation
The term other disposition does not include:

1. Issuance of stocks by a corporation

2. Exchange of stocks for services
3. Redemption of shares in a mutual fund
4. Worthlessness of stocks
5. Redemption of stocks for cancellation by the issuing corporation
6. Gratuitous transfer of stocks

Tax on Sale of Domestic Stocks through PSE

This sale is not subject to capital gains tax but to stock transaction tax of 60% of 1% of the selling
price. Since the basis is the selling price, the sale is taxable whether is results to a gain or loss.

Capital Gains Tax on Sale of Domestic Stocks Directly to Buyer

When the sale is made directly to the buyer, the net gain on the sale is subject to a 15% flat rate,
except if the seller is a non-resident foreign corporation which has a two-tiered rate of 5% on the
first P100,000 net gain and 10% on the gain in excess of P100,000.

Nature
Universal Tax
It applies to all taxpayers disposing stocks classified as capital assets regardless of the
classification of the taxpayer. BY situs, the gain on sale of domestic stocks is within. The tax still
applies even if the sale is executed outside the Philippines.

Annual Tax
It is imposed on the annual net gain on the sale of domestic stocks directly to buyer.

The Net Gain

The net gain from the sale is computed using the formula below.

Selling Price xx
Tax Basis of Stocks Disposed (xx)
Selling Expenses (xx)
DST on the Sale (xx)
Net Capital Gain xx
Not unlike the CGT on sale of real properties, the gain is not presumed here. There will only be
a tax liability if the sale results to a net gain.

Since documentary stamp taxes may be paid by either party to the contract, such tax incurred
on the sale is only deducted if it is paid by the seller.
Illustration 6.5
EGA Company, a non-dealer in stocks, holds 100,000 listed shares of AKR Company, a
domestic corporation. It was acquired at P20 each. On January 5, 2020, it sold 30,000 shares
for P540,000. On March 16, 2020, it sold 50,000 shares P1,150,000. It sold the remaining shares
for P500,000 on September 14, 2020.

Scenario 1: The sale is made through PSE

The sale shall be subject to the stock transaction tax. Consequently, the total tax liability would be:
Selling Price (540,000+1,150,000+500,000) 2,190,000
STT Rate X 0.006
Stock Transaction Tax 13,140

Scenario 2: EGA is a domestic corporation and the sale is made directly to the buyers.
Each sale shall be liable to the transactional CGT rate of 15% and will be annualized.
Selling Price on 1/5 540,000
Tax Basis of Shares 600,000
Net Capital Loss (60,000)
There shall be no capital gains tax liability on the sale on January 5.
Selling Price on 3/16 1,150,000
Tax Basis of Shares 1,000,000
Net Capital Gain 150,000
CGT Flat Rate 15%
Capital Gains Tax 22,500
Since the sale resulted to a gain, there is a tax liability of P22,500.
Selling Price on 9/14 500,000
Tax Basis of Shares 400,000
Net Capital Gain 100,000
CGT Flat Rate 15%
Capital Gains Tax 15,000
Since the sale resulted to a gain, there is a tax liability of
P15,000. All sales will be consolidated to determine the annual
CGT.
Net Capital Loss on 1/5 (60,000)
Net Capital Gain on 3/16 150,000
Net Capital Gain on 9/14 100,000
Annual Net Capital Gain 190,000
CGT Flat Rate 15%
Annualized Capital Gains Tax Due 28,500
 Transactional Capital Gains Tax Paid (22,500+15,000) 37,500
Capital Gains Tax Due (Refundable) 9,000

Scenario 3: EGA is a non-resident foreign corporation and the sale is made directly to buyer.
The procedure is similar to Scenario 2. The only difference would be the use of the two-tiered rate.
1/5 3/16 9/14 Annualized
Net Capital Gain (Loss) (60,000) 150,000 100,000 190,000
First-Tier CGT - 5,000 5,000 5,000
Second-Tier CGT - 5,000 - 9,000
CGT Due 0 10,000 5,000 14,000
CGT Credits 15,000
CGT Still Due (Refundable) (1,000)

Documentary Stamp Tax on the Sale, Exchange, and Other Dispositions of

Domestic Stocks Directly to a Buyer
The sale of domestic stocks is subject to a documentary stamp tax of P1.50 for every P200 of the
par value of the stocks sold.

Illustration 6.6
A taxpayer sold domestic stocks with total par value of P800,000 for P1,200,000. The stocks
have a fair value of P1,250,000 and were acquired for P1,000,000.

The documentary stamp tax shall be P6,000 computed as P1.50/P200 x P800,000.

Wash Sales
Wash sale of securities is deemed to occur when within 30 days before and 30 days after the sale
(also referred to as the 61-day period), the taxpayer acquired or entered into a contract or option
to acquire substantially identical securities. Capital losses on wash sales by non-dealers in
securities are not deductible against capital gains. The wash sales rule is intended to prevent
taxpayers from feigning temporary losses which could enable them to manipulate their
reportable taxable net gain. Hence, the prohibition against the claim of wash sales is not an
absolute rule but is a form of deferral of loss. The wash sales rule is not applicable to dealers in
securities as it is normal business for them to buy and sell stocks and realize gains or incur
losses within short periods of time.
 Illustration 6.7
Acquisition of identical shares before and after a losing sale. In 2019, Mr. Iriga had the
following transactions in the shares of Naga Corporation, domestic corporation:
Date Transaction Shares Price/Share Value
January 4 Purchase 15,000 20.00 300,000
February 15 Purchase 5,000 21.00 105,000
February 28 Sale 12,000 18.00 216,000
March 4 Purchase 3,000 16.00 48,000
April 18 Sale 5,000 25.00 125,000
The shares sold on February 28 were the shares bought on January 4, 2019. The sale on April
18 were the shares bought on February 15.

The capital loss is P24,000 computed as (P18/share selling price - P20/share cost) x 12,000 shares sold.
Since the sale happened on February 28, it a wash sale of February 15 and March 4 purchases. The
portion of the capital loss allocable to the 8,000 replacement shares (5,000 from Feb 15 and 3,000 from
Mar 4) is deferred and capitalized and the balance recognized as a deductible loss.
Date Computation Deferred Loss Purchase Price New Tax Basis
February 15 5,000/12,000 x 24,000 10,000 105,000 115,000
March 4 3,000/12,000 x 24,000 6,000 48,000 54,000
The deductible capital loss of P8,000 is computed by 4,000/12,000 x 24,000.

The capital gain on April 18 is P10,000 which is the sale price of P125,000 less the new tax basis of Feb
15 shares at P115,000.

FILING AND PAYMENT

The following are the required forms in paying for the capital gains tax and the specified
deadlines for filing and payment. [You may click the form codes to access the link to the pdf file
of said form.]

Deadline
Form Name Manual Filing eFPS Filing

Capital Gains Tax Return for
Onerous Transfer of Real
1706
Property Classified as Capital
Asset
30 days following each sale, exchange or
disposition of real property (after receipt of
first payment, if instalment)
 Capital Gains Tax Return for
Onerous Transfer of Shares of
1707
Stock Not Traded Through the
Local Stock Exchange
Annual Capital Gains Tax
Return for Onerous Transfer of
1707A Shares of Stock Not Traded
Through the Local Stock
Exchange
30 days following each sale, exchange or
disposition of shares not thru PSE (after
receipt of first payment, if instalment)
On or before April 15 for individuals
On or before 15th day of the 4th month
following close of taxable year for
corporations

Instalment Payment
The same principles and calculation method from the Instalment Method illustrated in Module
4 is to be used except that instead of using the gross profit, we multiply the capital gains tax
due.
ACTIVITY/EVALUATION

TRUE OR FALSE
Determine whether the following statements are true or false.
1. The CGT on sale of real properties classified as capital assets assumes a gain on the sale.
2. The capital loss on wash sales is fully capitalized as cost of the replacement shares if the number of
shares sold exceeds the replacement shares.
3. The CGT on sale of domestic stocks directly to buyer only results to a tax liability if it results to a
gain.
4. Upon signifying intention to avail exemption on CGT on sale of principal residence, the amount of
supposed CGT should be deposited in an escrow account.
5. The option to be taxed at regular income taxation arises from the State’s power of eminent domain.
6. Dealers of stocks are subject to capital gains tax.
7. There is a possibility of a CGT refundable in the annual return if a transactional CGT resulted on a net
capital loss.
8. The documentary stamp tax can be paid by either party to the contract.
9. The capital gains tax is a final tax.

MULTIPLE CHOICE
Choose the best answer from the choices provided.
1. Who is subject to the two-tiered CGT rate?
Resident Individual
Non-Resident Individual
Resident Corporation
Non-Resident Corporation
2. Which of the following may not be the tax base of the 6% CGT?
a. Selling Price
b. Appraised Value
c. Zonal Value
d. Assessor’s Value

3. What is the base of the 15% CGT?

a. Par Value
b. Selling Price
c. Net Gain
d. Fair Market Value

4. What is the base of the documentary stamp tax?

a. Par Value
b. Selling Price
c. Net Gain
d. Fair Market Value

Exercise 6.3 CAPITAL GAINS TAX RATES

Write the capital gains tax rate applicable for each income. Write NA if it is not subject to CGT.
1. A non-resident foreign corporation sells a building located in Pasay City
2. A resident alien sells Ayala Stocks to an alien residing in France
3. A non-dealer domestic corporation buys 10,000 shares of a publicly traded stock
4. A resident citizen acquires Jollibee stocks directly from a non-resident citizen
5. A non-resident foreign corporation sells domestic shares directly to a buyer
6. A stock dealer directly sells domestic shares to a domestic corporation
7. A domestic corporation sells Apple stocks directly to a citizen buyer

hgh
REINFORCEMENT/ASSIGNMENT
Problem 6.1
SALE OF REAL PROPERTY
Colly owns a parcel of land which it acquired for P3,100,000. It sold the same on November 18, 2020 via
a deed of sale for P5,000,000. The zonal value of the land is P4,800,000 while its assessor’s value is
P5,200,000.

Answer the following independent questions.

How much is the capital gains tax due?
If the return is only filed on June 19, 2021, how much is the total amount due exclusive of compromise
penalty?
Assume the payment is 20% downpayment and the balance in five equal annual instalments every June
30, how much is the capital gains tax due for the year 2020?
4. Assume it is considered a principal residence and only P4,000,000 of the proceeds are utilized
for the purchase of a new one, how much is the capital gains tax due to the government?
5. Assume Colly is a real estate business, how much is the capital gains tax due?

Problem 6.2 SALE OF PRINCIPAL RESIDENCE

Taraji owns a residential house and lot costing P2,500,000 which is her principal residence for
P4,000,000. The fair market value of the property is lower than the sale price. Eight months after
the sale, Taraji was able to purchase a new principal residence worth P3,200,000. Appropriate
amount was deposited in an escrow account earning 4% interest p.a.

Answer the following questions.

1. How much should be deposited to an escrow fund?
2. How much is the capital gains tax due to the government?
3. How much should be released to Taraji?
4. How much is the tax basis of the new principal residence?

Problem 6.3 SALE OF DOMESTIC STOCKS DIRECTLY TO BUYER

Henson Company, a non-dealer, owns 20,000 unlisted shares of a domestic corporation costing
P2,800,000. It sold 14,500 shares during June 2020 for P155 each and the balance on September
2020 at P138 each.

Answer the following questions.

1. Assume Henson is a domestic corporation, how much is the transactional CGT due on the June
2020 sale?
2. Assume Henson is a domestic corporation, how much is the transactional CGT due on the
September 2020 sale?
3. Assume Henson is a domestic corporation, how much is the CGT still due(refundable) on the
annual CGT return?
4. Assume Henson is a non-resident foreign corporation, how much is the transactional CGT due on
the June 2020 sale?
5. Assume Henson is a non-resident foreign corporation, how much is the transactional CGT due on
the September 2020 sale?
6. Assume Henson is a non-resident foreign corporation, how much is the CGT still due(refundable)
on the annual CGT return?

Problem 6.4 WASH SALES

On July 8, 2020, Machine Company, a non-dealer, purchased 10,000 domestic shares for
P800,000. These shares were sold on October 1, 2020 for P750,000. Other purchases of the same
shares were 6,000 on September 15 for P492,000 and 2,000 on October 29 for P170,000. All of the
shares acquired on September 15 were sold on December 16 at P600,000.

Answer the following questions.

1. How much is the deductible capital loss from the October 1 sale?
2. How much is the tax basis of the October 29 shares as of December 31, 2020?
Problem 6.4 DOCUMENTARY STAMP TAX
During the year, Matilda sold two capital assets:
 25,000 unlisted domestic stocks with a par value of P50 which was acquired for
P1,500,000 at a selling price P1,800,000
 An agricultural lot with an assessor’s value of P1,800,000, cost of P1,200,000, zonal value
of P1,500,000 for a selling price of P2,000,000

Answer the following questions.

1. How much is the documentary stamp tax on the sale of domestic stocks?
2. How much is the documentary stamp tax on the sale of agricultural lot?
3. How much is the capital gains tax on the sale of domestic stocks?
4. How much is the capital gains tax on the sale of agricultural lot?

REFERENCES:

 Income Taxation with Special Topics and Properly Filled BIR Forms, 2020
Edition - Enrico D. Tabag, CPA, MBA & Earl Jimson R. Garcia, CPA, MBA

 Reviewer in Taxation Updated TRAIN-Book 1 2018 Edition- Asser S.

Tamayo, CPA, MBA

 Income Taxation-Laws, Principles and Applications- Rex B. Banggawan,

CPA, MBA

 National Internal Revenue Code of 1997

 Bureau of Internal Revenue Regulations

 Bureau of Internal Revenue Memorandum Circulars

 Supreme Court Jurisprudence on Tax Cases