BIR Ruling

February 14, 1977 Mr. Osias Q. Magdirila Rm. 402 Laperal Bldg. 865 Rizal Avenue, Sta. Cruz Manila S i r : This refers to your letters dated January 26 and February 8, 1977 requesting exemption from the payment of donor's gift tax of the donation of three (3) portions of land containing a total area of 163.2 square meters together with the building and improvements erected thereon, covered by Transfer Certificate of Title No. 49315 situated in Grace Park, Caloocan City, made by Mrs. Rosalina Santos Morales in favor of the Philippine Annual Conference of the United Methodist Church in the Philippines by virtue of a Deed of Donation executed on December 30, 1976. It appears that the donee is a religious corporation duly organized and existing under the laws of the Philippines. In reply, I have the honor to inform you that as the donee is a religious corporation, the aforementioned donation is exempt from the payment of donor's gift tax, pursuant to Section 112(a)(3) of the Tax Code, as amended by Presidential Decree No. 69. However, the exemption from the donor's gift tax to subject to the condition that not more than 30% of said gifts shall be used by the donee for administration purposes. cdti Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."