BIR Ruling

May 29, 1974 Rev. Acer M. Mendoza The United Methodist Church Malolos, Bulacan S i r : This refers to your letter dated May 23, 1974 requesting exemption from the donor's gift tax the donation of two (2) parcels covered by Transfer Certificate of Title No. T-40532 and T-52969, located in the Municipalities of Pandi and Plaridel, both of Bulacan. It is represented that separate Deeds of Donation covering said real properties were executed on October 22, 1973 and March 14, 1974 by Fructousa D. Castro, Jr. and Gregorio Javier, respectively, in favor of the Middle Philippines Annual Conference of the United Methodist Church, a non-profit, non-stock, religious corporation organized and existing under the laws of the Philippines, with principal office of San Fernando, Pampanga, as the Donee. In reply, I have the honor to inform you that, pursuant to Section 112 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 Middle Philippines Annual Conference of the United Methodist Church, a religious corporation, is 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 gifts shall be used for administration purposes. cdta 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."