BIR Ruling [DA-044-02]

March 12, 2002 BIR RULING [DA-044-02] King's Court Development, Inc. 2129 Pasong Tamo, Makati City Attention: Ms. Ester D. Asuit Gentlemen : This refers to your letter dated September 4, 2001 requesting exemption from the payment of donor's tax on the donation of a building/improvements owned by Kings Development, Inc., to Kaisa Heritage Foundation, Inc. It appears that King's Development Inc. is a corporation duly organized and existing under and by virtue of the laws of the Republic of the Philippines with principal office address at King's Court 1 Building, Pasong Tamo, Makati City; that it is the registered owner of a building/improvements situated at Cabildo St., cor. Anda St., Intramuros, Manila, covered by Tax Declaration No. C-69 99-00241 issued by the City of Assessor of Manila; that Kaisa Heritage Foundation, Inc. is a non-stock, non-profit cultural corporation duly registered with the Securities and Exchange Commission on November 12, 1996 under SEC Registration No. A199609742 with principal office address at Kaisa Angelo King Heritage Center Intramuros, Manila; and that the aforesaid donation shall be used to maintain cultural and research centers for the promotion and preservation of the cultural legacy of the Chinese in the Philippines. In reply, please be informed that inasmuch as the donee is a cultural non-stock, non-profit corporation, 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. Moreover, the Deed of Donation that will be executed for the purpose is not subject to documentary stamp tax. However, the acknowledgment on said deed is subject to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling No. DA-226-2001 dated October 30, 2001) 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, (SGD.) MILAGROS V. REGALADO Acting Assistant Commissioner Legal Service