BIR Ruling [DA-042-01]

March 22, 2001 BIR RULING [DA-042-01] 101 (A) (3) 481-98 Remar Pilipinas Rehabilitation Center of the Philippines, Inc . 14 Sandiko St., B.F. Homes Quezon City Attention: Mr . Luis Martinez Garcia Gentlemen : This refers to your letter dated February 12, 2001 requesting exemption from the payment of donor's tax on the donation of a motor vehicle from Remar Spain, to Remar Pilipinas. It appears that Remar Spain is the registered owner of Nissan Patrol SE-7221-CP, and with chassis number VSKAYG260U0594764; that Remar Pilipinas is a non-stock, nun-profit corporation duly registered with the Securities and Exchange Commission under SEC Registration No. A199812059 dated November 4, 1998; and that the main objective for which the corporation was formed is to establish and operate a multi-purpose center exclusively for religious, charitable and education purposes, more specifically, to rehabilitate and improve the moral, cultural and spiritual welfare of socially marginalized people, drug addicts, alcoholics, the homeless and the poor, and to provide information and awareness to the public about self-development and self-sufficiency. In reply, please be informed that inasmuch as the donee is a charitable 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. 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 P15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling DA-481-98 dated November 9, 1998) aSEDHC 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.) MILAGROS V. REGALADO Acting Assistant Commissioner Legal Service