BIR Ruling

October 8, 1973 The Acting Regional Director Revenue Region No. 10 Lucena City S i r : This is in reply to your letter dated August 29, 1973 requesting information as to whether the donation of certain parcels of land situated in Lucena City in favor of the City Government of Lucena is exempt from the gift taxes. It appears that a Deed of Donation was executed on May 7, 1964 whereby, subject to certain condition expressly provided therein, Messrs. Vicente C. Reyes and Remedios C. Reyes, represented by their attorneys-in-fact, namely: Messrs. Irineo E. Lozada, Jr., Peregrino D. Peres and Ballardo V. Villapando with office and postal address at No. 56 Lucban Street, City of Lucena ceded, transferred and conveyed by way of donation in favor of the City Government of Lucena, represented by Hon. Mario Tagarao, as its City Mayor, nine (9) parcels of land of the Villa San Pablo Subdivision plan (LRC) Pcs. 2043 situated in the District of Iyan, City of Lucena, with a total area of 6,064 square meters, more or less. Pertinent portions of Section 112 of the Tax Code before its amendment by Presidential Decree No. 69 read as follows: "SEC. 112. 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 (3) 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. xxx xxx xxx." In view thereof, this Office is of the opinion as it hereby holds that having been made in favor of the City Government of Lucena City, a political subdivision of the National Government, the donation of the aforesaid nine (9) parcels of land is exempt from the donor's and donee's gift taxes. aisadc Be guided accordingly. 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."