Revision and Correction of Land-Tax Assessments

May 10, 2006 DA ITAD BIR RULING NO. 050-06 Section 101, National Internal Revenue Code of 1997; BIR Ruling No. DA-ITAD 74-05 Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA) 4031 College, Los Baos, Laguna Attention: Mr. Gil C. Saguiguit, Jr. Deputy Director for Administration Gentlemen : This refers to your letter dated December 9, 2005, indorsed to this Office by the Department of Foreign Affairs and the Department of Finance for appropriate action, pertaining to your donation of one (1) unit officially owned, locally purchased, motor vehicle to the Department of Agriculture-Bureau of Agricultural Research (DA-BAR), specifically described as follows: Make : 2000 Black Toyota Corolla Motor No. : 7AH983904 Chassis No. : AE1127500034 Plate No. : OEV - 21809 In reply, please be informed that Section 101 of the National Internal Revenue Code (NIRC) of 1997 provides, viz : SEC. 101. Exemption of Certain Gifts . The following gifts or donations shall be exempt from the tax provided for in this Chapter: (A) In the Case of Gifts Made by a Resident. xxx xxx xxx (2) Gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government; and xxx xxx xxx Donor's tax is a direct tax imposed upon the transfer by any person, resident or nonresident, of a property by gift. Based on the abovementioned provision and considering the fact that the donee of the subject motor vehicle is a government entity, the Department of Agriculture-Bureau of Agricultural Research, such transfer of ownership over the subject motor vehicle is exempt from tax, specifically donor's tax. This ruling is issued on the basis on the facts as represented. However, if upon investigation it shall be disclosed that the facts are different, then this ruling shall be without force and effect insofar as the herein parties are concerned. IDEHCa Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service