BIR Ruling [DA-017-06]

January 24, 2006 BIR RULING [DA-017-06] 101 (A) (3); S30-056-2001 J.J.L. Foundation, Inc . Rm. 203 Ledesma Bldg. General Luna St., Intramuros Manila Attention: Mr. Benjamin J. Ledesma President Gentlemen : This refers to your letter dated October 19, 2005 requesting for exemption from the payment of donor's tax relative to the donation of a parcel of land by Elvira R. Ledesma in favor of J.J.L. Foundation, Inc. It appears that J.J.L. Foundation, Inc. is a corporation organized and existing under Philippine laws and is registered with the Securities and Exchange Commission (SEC) under Company Registration No. 102848 issued on September 14, 2005; that the purpose for which it was organized was to give financial and other assistance to charitable institutions, particularly orphanages and homes for the aged and to give financial and other assistance to organizations for the propagation of the Catholic faith, particularly, the teaching of catechism; that Elvira R. Ledesma, on the other hand, is the registered owner of a parcel of land located at T.S. Cruz Subdivision, Almanza Dos, Las Pias City with an area of 359 sq.m. and covered by Transfer Certificate of Title (TCT) No. T-50618 of the Registry of Deeds for Las Pias, Metro Manila; and that she intends to donate said parcel of land thru a Deed of Donation to J.J.L. Foundation, Inc. In reply, please be informed that inasmuch as the donee is a charitable organization, 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. aSEDHC Moreover, the Deed of Donation will not be 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 same Tax Code. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service