BIR Ruling [DA-001-05]

January 5, 2005 BIR RULING [DA-001-05] Secs. 101 (A) (3) & 196 S-30-013-2003 Mariano C. Ereso, Esq . 149 Roxas Boulevard Paraaque City S i r : This refers to your letter dated January 5, 2005 requesting on behalf of Father Manuel P. Hilario and Father Joey Jose Ruaya Cervantes for a ruling confirming your opinion that the donation of their respective shares of stock in Petron Corporation to Missionaries of the Sacred Heart (MSC) is exempt from donor's tax. It is represented that MSC is a non-stock, non-profit religious corporation organized and existing under the laws of the Philippines with office address at No. 8-4th Street, New Manila, Quezon City; that the purpose or purposes for which the corporation was formed is to do missionary, church, hospital, charitable and educational work in the Philippines; to disseminate Catholic doctrines and make known the Catholic way of life through various media of mass communications; and incidental to as well as in furtherance of this purpose, to print, publish, circulate, and distribute periodicals, magazines, books or any other pertinent matter for the dissemination of Catholic doctrines and the propagation of the Catholic way of life, and to, accomplish said purpose, to acquire and operate printing press or establishment; and to engage in such other activities as will assist, support and promote any of the aforementioned activities; and that Father Manuel P . Hilario and Father Joey Jose Ruaya Cervantes who are religious missionaries are registered owners of the following shares of Petron Corporation, viz : NAME CERTIFICATE NO. NO. OF SHARES MANUEL P. HILARIO 428662 1,600 790566 400 1319377 500 1535449 500 JOEY JOSE RUAYA CERVANTES 428660 1,600 790088 400 1318981 500 1535070 500 In reply, please be informed that inasmuch as the donee is a non-stock, non-profit religious corporation, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 101(A)(3) of the Tax Code of 1997, subject to the condition that. not more than 30% of said gift shall be used by the donee for administration purposes. EaCSHI Moreover, the aforesaid Deed of Donation is not subject to the documentary stamp tax prescribed under Section 196 of the Tax Code of 1997, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling No. S-30-013-2003 dated July 18, 2003) This ruling being issued in the basis of the foregoing facts as represented. However, if upon investigation it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service