Mary the Queen School of Malolos, Inc.

January 28, 2008 BIR RULING [DA-048-08] 101 (A) (3); DA-028-98; DA-407-03 Mary the Queen School of Malolos, Inc. Guillerma Village, Phase 2, Sta. Rita San Miguel, Bulacan Attention: Ms. Veronica R. Gonzales Gentlemen : This refers to your letter dated July 5, 2007 requesting in effect for a ruling that the donation made by Veronica R. Gonzales and V.R. Gonzales Credit Enterprises, Inc. in favor of Mary the Queen School of Malolos, Inc. is exempt from the payment of donor's tax. Documents submitted disclosed that Mary the Queen School of Malolos, Inc. is a corporation duly organized and existing under and by virtue of the laws of the Republic of the Philippines; that it is a non-stock, non-profit educational institution duly registered with the Department of Education (DepEd); that on August 15, 2007, two (2) separate Deeds of Donation were executed, whereby Veronica R. Gonzales and V.R. Gonzales Credit Enterprises, Inc. donated to Mary the Queen School of Malolos, Inc. several parcels of land, the Transfer Certificates of Title (TCT's) covering the same are as follows: Parcels of land donated by Ms. Veronica R. Gonzales: TCT Nos. T-45633 and T-45634, both of the Registry of Deeds of the Province of Bulacan; Parcels of land donated by V.R. Gonzales Credit Enterprises, Inc.: TCT Nos. T-60832, T-60833, T-60834, T-96062 and T-96063, all of the Registry of Deeds of the Province of Bulacan; that the above donated properties consisting of an aggregate seven (7) parcels of land located at Malolos, Bulacan, are the sites of the school buildings of Mary the Queen School of Malolos. In reply, please be informed that since Mary the Queen School of Malolos, Inc. is an accredited nonstock, nonprofit educational institution, the aforementioned donation in its favor is exempt from the payment of the donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, 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 two (2) separate Deeds of Donation executed are not subject to the documentary stamp tax prescribed under Section 196 of the Tax Code, as amended, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997, as amended. (BIR Ruling No. 108-94 dated May 30, 1994; BIR Ruling No. DA-028-98 dated January 29, 1998 and DA-407-2003 dated November 11, 2003) LLphil 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 or that the requirements imposed therein have not been complied with, then this ruling shall be considered null and void. Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service