BIR Ruling [DA-025-03]

January 30, 2003 BIR RULING [DA-025-03] S27 (D) (1) ENPS-001-99 Palawan State University Puerto Princesa City Attention: Ms. Teresita L. Salva President Gentlemen : This refers to the 1st Indorsement of the Regional Director of Revenue Region No. 6. Manila, dated November 22, 2002 relative to your request for tax exemption pursuant to Section 98 of the Tax Code of 1997. It is represented that Palawan State University (PSU), a government institution of learning, requested Pilipinas Shell Petroleum Corporation to donate equipment for its College of Engineering; that National Government subsidy to state universities and colleges continue to dwindle through the years; that next year, PSU has zero equipment outlay; and that it therefore behooves upon you to look for donors of the much-needed instructional equipment. SATDHE In reply, please be informed that inasmuch as the donee is an educational institution, 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 for administration purposes. Moreover, the aforesaid Deed of Donation is subject to the documentary stamp tax of P15.00 imposed under Section 188 of the same Code. (BIR Ruling No. DA-18-98 dated January 29, 1998) 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.) MILAGROS V. REGALADO Assistant Commissioner Legal Service