BIR Ruling [DA-045-00]

January 20, 2000 BIR RULING [DA-045-00] University Baptist Church 818 Nicanor Reyes Sr. Avenue Sampaloc, Manila Attention: Atty . Eugeryl T . Rondario Vice-Chairman/Acting Chairman Gentlemen : This refers to your letter dated March 3, 1999 requesting exemption from the donor's tax of the donation of a parcel of land by Philippine Baptist S. B. C. Inc. in favor of the University Baptist Church, Inc. It appears that the University Baptist Church, Inc. is a non-stock, non-profit religious corporation duly registered with the Securities and Exchange Commission on December 12, 1973 under SEC Registration No. 53928; that the Philippine Baptist S.B.C. Inc. is the registered owner of a parcel of land with improvements thereon situated at Sampaloc, Manila consisting of Three Hundred Forty Nine square meters and Seventy square decimeters (349.70) covered by Transfer Certificate of Title No. 119781 issued by the Registry of Deeds for the City of Manila; that ownership of the property is subject to the condition that it shall remain in the name of University Baptist Church, Inc. provided it shall continue to operate in keeping with the doctrine and tenets of Southern Baptist identified in the Baptist Faith and Message as upheld by the Luzon Convention of Southern Baptist Churches, Inc.; that in order to continue the original purpose of making this property meet the needs of the students and other church ministries of Union Baptist Church, Inc. in the community, the premises of the property will not be utilized for commercial or any other purpose; and that neither will this be disposed, exchanged or encumbered for purposes of acquiring another property of the Union Baptist Church, Inc. In reply, please be informed that inasmuch as the donee is a religious organization, 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. cdlex Moreover, the Deed of Donation 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-481-98 dated November 9, 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.) SIXTO S. ESQUIVIAS IV Deputy Commissioner Legal and Enforcement Group