BIR Ruling

April 24, 1975 Messrs. Quasha, Asperilla, Zafra, Tayag & Ancheta Lawyers Don Pablo Bldg., Amorsolo St. Makati, Rizal D-708 Attention: Atty . Antero R . Rance Gentlemen : This refers to your letter dated April 4, 1975 requesting exemption from the donor's gift taxes of the donations made in favor of your client, the Philippine Baptist S.B.C., Inc. It is represented that your client is a religious corporation organized and existing under the laws of the Republic of the Philippines, with principal offices at 3444 Taft Avenue, Manila; that the Foreign Mission Board of the Southern Baptist Convention of the United States of America which is the mother church of your client has real properties in the Philippines, situated specifically in the following cities and provinces: CITIES PROVINCES: 1. Baguio City 18. Abra Province 2. Dagupan City 19. La Union 3. San Carlos City 20. Pangasinan Pangasinan 21. Tarlac 4. Cabanatuan City 22. Nueva Ecija 5. Angeles City 23. Pampanga 6. Manila 24. Bulacan 7. Quezon City 25. Rizal 8. Pasay City 26. Cavite 9. Cavite City 27. Laguna 10. Cebu City 28. Batangas 11. Cagayan de Oro City 29. Misamis Occidental 12. Iligan City 30. Davao Oriental 13. Cotabato City 31. Davao del Norte 14. Davao City 32. Davao del Sur 15. Zamboanga City 33. South Cotabato 16. General Santos City 34. North Cotabato 17. Olongapo City 35. Zamboanga del Sur 36. Lanao del Norte 38. Bataan that the Foreign Mission Board of the Southern Baptist Convention, a religious corporation, organized and existing under and by virtue of the laws of the Commonwealth of Virginia, has executed deeds of donation in favor of your client covering all its properties in the Philippines; and that you are now in the process of registering said deeds of donation in the respective Register of Deeds where said properties are located. It is likewise represented that in said donations, not more than 30% of the gifts involved will be used by such Donee for administration purposes. In reply, I have the honor to inform you that pursuant to Section 112(b)(2) of the Tax Code, as amended by Presidential Decree No. 69, gifts or donations made in favor of a religious corporation are exempt from the donor's gift tax. Such being the case, the above-mentioned donations made in favor of the Philippine Baptist S.B.C., Inc., a religious corporation, are exempt from the donor's gift tax. However, it is a condition for the enjoyment of the tax exemption that not more than 30% of the gift shall be used for administration purposes. (See Unnumbered BIR Ruling dated May 29, 1974) Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."