BIR Ruling [DA-041-96]

January 29, 1996 BIR RULING [DA-041-96] Padilla Law Office 7th Floor, Padilla De los Reyes Bldg. 232 Juan Luna Street, Manila Attention: Atty . Sabino Padilla, Jr . Gentlemen : This refers to your letter dated December 11, 1995 requesting a ruling to the effect that the donation by Ms. Modesta Leonor of a parcel of land together with the improvements thereon situated in San Juan Metro Manila and covered by Transfer Certificate of Title No. 49233 of the Register of Deeds of the Province of Rizal in favor of the Congregation of the Franciscan Sisters of the Immaculate Conception of the Holy Mother of God is exempt from the donor's tax. It is represented that the donee is a religious society of the Roman Catholic Church engaged in religious, educational, charitable and missionary activities. In reply thereto, please be informed that since the donee is a religious organization, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 94 (a) (3) of the Tax Code, as amended, subject to the condition that not more than 30% of said gift shall be used by the donee for administration purposes. Moreover, the aforesaid Deed of Donation is not subject to documentary stamp tax prescribed under Section 196 of the Tax Code, as amended but only to the documentary stamp tax of P10.00 imposed under Section 188 of the same Code. (BIR Ruling No. 032-94 dated February 3, 1994) cdtech Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)