BIR Ruling

April 4, 1975 Bishop Paul Locks A. Granadosin United Methodist Church 900 United National Avenue Manila S i r : This refers to your letter dated March 20, 1975 requesting exemption from the donor's gift tax the donation of one (1) parcel of land covered by Original Certificate of Title No. 1382, located in the Municipality of Lingayen, Pangasinan. It is represented that A Deed of Donation covering said real property was executed on March 7, 1975 by the World Division of the Board of Global Ministries of the United Methodist Church, a non-stock, non-profit religious corporation organized and existing under the law of the State of New York, U.S.A.., and authorized to do business in the Philippines, with office at 1750 Adriatico Street, Malate, Manila, in favor of the Northwest Philippine Annual Conference of the Methodist Church, a non-stock, non-profit religious corporation organized and existing under the law of the Philippines, with principal office at Lingayen, Pangasinan, 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 corporations are exempt from the donor's gift tax. Such being the case, the above-mentioned donation made in favor of the Northwest Philippine Annual Conference of the Methodist Church, a religious corporation, is exempt from the donor's gift tax. cdti However, it is a condition for the enjoyment of the tax exemption that not more 30% of the gifts shall be used for administration purposes. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5