BIR Ruling [DA-028-01]

March 7, 2001 BIR RULING [DA-028-01] 101 (A) (2) 481-98 Department of the Interior and Local Government Philippine National Police Intelligence Group Camp Crame, Quezon City Attention: Romulo D . Sales Police Chief Superintendent Director Gentlemen : This refers to your letter dated February 28, 2001 requesting exemption from the payment of donor's tax on the donation of a motor vehicle by the U. S. Regional Affairs Office, U. S. Embassy, Manila to the Philippine National Police Intelligence Group. It appears that the U. S. Regional Affairs Office, U. S. Embassy, Manila, is the legal owner of a 1991 Toyota 4-Runner, motor number 0272645, serial/chassis number VZN130-0050933, 6 cylinder, gasoline powered, registered vehicle with the Land Transportation Office; that the title of the property approved for transfer will pass from the U. S. Regional Affairs Office, U. S. Embassy, Manila to the Philippine National Police Intelligence Group upon physical removal of the property by the U. S. Regional Affairs Office, U. S. Embassy, Manila from holding activity; and that after title to the property has passed to the National Police Intelligence Group, the same will assume all responsibilities incident to ownership of such property, including, but not limited to, all risks of loss or damage to the property and of all damage caused by or charges incurred on the property. In reply, please be informed that inasmuch as the donee is an agency of the National Government, the aforesaid donation is exempt from the payment of donor's tax pursuant to Section 101(A)(2) of the Tax Code of 1997. However, the subject donation of a motor vehicle shall be subject to the 10% VAT pursuant to Section 107(A) of the Tax Code of 1997. (BIR Ruling No. DA-371-2000 dated October 25, 2000) Moreover, the Deed of Donation is not subject to documentary stamp tax However, the acknowledgment on said deed is subject to documentary stamp tax of 15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling DA-481-98 dated November 9, 1998) AcEIHC This ruling is being issued on the basis of the forgoing 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