September 17, 1997

DAR OPINION NO. 108-97

    MEMORANDUM

    TO                :     Dominador B. Andres
                                                  OIC-Regional Director
                                                  DAR Region VI
                                                  La Paz, Iloilo City

    SUBJECT    :     Consulta on Tax Payment of VLT-Covered Areas

This has reference to your request regarding the non-payment of taxes by landowners on areas covered by applications for Voluntary Land Transfer (VLT). We wish to inform you that transactions involving a transfer of ownership under Republic Act No. 6657 is tax exempt. Section 66 and 67 of R.A. No. 6657 provide, respectively, quote:

"SECTION 66.        Exemptions from Taxes and Fees of Land Transfers. — Transactions under this Act involving a transfer of ownership, whether from natural or juridical persons, shall be exempted from taxes arising from capital gains. These transactions shall also be exempted from the payment of registration fees, and all other taxes and fees for the conveyance or transfer thereof: Provided, That all arrearages in real property taxes, without penalty or interest, shall be deductible from the compensation to which the owner may be entitled.

SECTION 67.          Free registration of Patents and Titles. — All Registers of Deeds are hereby directed to register, free from payment of all fees and other charges, patents, titles and documents required for the implementation of the CARP."

In view of the above provisions of law, the subject pending VLT applications should thus proceed accordingly.

We hope to have resolved the matter.

(SGD.) ARTEMIO A. ADASA, JR.

Undersecretary for Legal Affairs, and Policy and Planning