BIR Ruling [DA-006-01]

January 22, 2001 BIR RULING [DA-006-01] 101 (A) (3) 481-98 Padilla Law Office 7/F Padilla-De Los Reyes Bldg. 232 Juan Luna St., Binondo, Manila Attention: Atty . Sabino Padilla, Jr . Gentlemen : This refers to your letter dated December 4, 2000 requesting on behalf of your client, the Roman Catholic Archbishop of Lipa for exemption from the payment of donor's tax on the donation of three (3) lots by the Colegio de San Jose, Inc. It appears that the Roman Catholic Archbishop of Lipa is a corporation sole organized and existing under the laws of the Philippines, with address at the Archbishop's Residence, Lipa City, represented by Most Rev. Gaudencio B. Rosales, D.D.; that the Colegio de San Jose, Inc. is a religious school duly organized and existing under the laws of the Philippines; that the said school has ceded, transferred and assigned in favor of the Roman Catholic Archbishop of Lipa, the following parcels of land with all the buildings and improvements thereon, to wit: Lot No. 2-A (Psd-16502), consisting of 9,146 sq. meters, Lot No. 306-J (Psd-14468) consisting of 13,467 sq. meters and Lot No. 456-E (Psd-14468) consisting of 2,223 sq. meters; and that said lots have been used since time immemorial as the Lian Roman Catholic Cemetery and Binubusan Roman Catholic Cemetery, respectively. In reply, please be informed that inasmuch as the donee is a religious institution, the aforesaid 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. Moreover, the Deed of Donation is not subject to documentary stamp tax. However, the acknowledgment on said deed is subject to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling DA-481-98 dated November 9, 1998) aATHIE This ruling is being issued on 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, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal and Inspection Group