May 21, 2010
BIR RULING [DA-(JV-016) 073-10]
Section 22 (B); DA-450-2004
Agro-Macro Development Corporation
#21 Paseo Annabelle, Ma. Luisa Estate Park
Banilad, Cebu City
Attention: Ms. Annabelle O. Aboitiz
Gentlemen :
This refers to your letter dated March 4, 2009 requesting a confirmatory ruling to the effect that the Joint Venture Agreement (JVA) between Sps. Edgar C. Adlawan and Lydia T. Adlawan, landowners and Agro-Macro Development Corporation (Agro-Macro), developer, will have the following tax consequences: DaAETS
1. The JVA will not create a separate taxable joint-venture within the meaning of Section 22 (B), in relation to Section 27 (A) of the Tax Code of 1997, as amended; and
2. Since the JVA will not create a separate taxable joint-venture, the subsequent division and allocation of ownership of the developed property between the parties will not be subject to income tax.
Documents submitted disclosed that Spouses Edgar C. Adlawan and Lydia T. Adlawan are the absolute owners in fee simple of one (1) parcel of land situated at Barangay Pulangbato, City of Cebu, Philippines, known as Lot 10546 Cebu Cadastre 12, Extension, covered by TCT No. 4023,...
