BIR Ruling [DA-046-98]

February 9, 1998 BIR RULING [DA-046-98] Ms. Erlinda C. Daoana No. 6, 8th Street United Paraaque Subdivision V Sucat, Paraaque Metro Manila M a d a m : This refers to your letter dated October 13, 1997 requesting exemption from donor's tax relative to the donations made by Spouses Benjamin and Erlinda Daoana, Spouses Eriberto and Leticia Cuison, and Spouses Alejandro and Lorenzo Diaz of that certain portions of their respective properties in favor of the local government of Barangay Lucao, Dagupan City. It is represented that there is a need to construct a barangay/feeder road affecting some parcels of land, all situated at Barangay Lucao, Dagupan City covered by the following Transfer Certificates of Title Nos. : DONORS TCT NO. DIMENSION Benjamin and Erlinda Daoana 38696 27.5 m x 1.5 m 38695 25.20 m x 1.5 m Eriberto and Leticia Cuison 22155 58 m x 2 m Alejandro and Lorenza Diaz 17020 65.08 m x 1 m Francisca Cuison 16026 52.70 m x 1.5 m that the owners of the aforesaid parcels of land are willing to donate a portion of their respective parcels of land to the barangay for the construction of the aforesaid road; and that per Barangay Resolution, Punong Barangay Consolacion Quinto, on behalf of Barangay Lucao, accepted the donations by the above-named donors. aisadc In reply, please be informed that the donations by Spouses Benjamin and Erlinda Daoana, Spouses Eriberto and Leticia Cuison, Ms. Francisca Cuison, and Spouses Alejandro and Lorenzo Diaz to the local government of Barangay Lucao, Dagupan City are exempt from donor's tax pursuant to Section 94(a)(2) of the Tax Code, as amended, which provides that gifts made to or for the use of the National Government of any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government shall be exempt from tax. (BIR Ruling No. 21-96 dated February 21, 1996) Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)