BIR Ruling [DA-050-01]

March 22, 2001 BIR RULING [DA-050-01] 101 (A) (3) DA-28-98 Congregacion de la Mision de San Vicente de Paul de Filipinas Marian Center, 959 San Marcelino Street Manila Attention: Fr . Manuel Ginete, CM Provincial Superior Gentlemen : This refers to your letter dated November 6, 2000 requesting for an exemption from the payment of donor's tax prescribed under Section 101(A)(3) of the Tax Code of 1997. It is represented that Ona Real Estate Corporation (Ona Corp.) is the owner in fee simple of a certain parcel of land situated in Quezon City and more particularly described under Transfer Certificate of Title No. 89998 of the Register of Deeds for Quezon City; that for and in consideration of the educational, charitable, religious, cultural and social welfare activities of Congregacion de la Mision de San Vicente de Paul de Filipinas (Congregacion), Ona Corp. executed a Deed of Donation and Acceptance of Real Property in favor of the latter; that Congregacion is a religious congregation duly organized and existing under and by virtue of the laws of the Philippines as a Corporation sole; and that the subject property is located at Brgy. Silang, Quezon City and has an area of Ten Thousand Five (10.005) square meters. In reply, please be informed that inasmuch as the donee is a religious institution, the aforementioned 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 for administration purposes. Moreover, the aforesaid Deed of Donation is not subject to documentary stamp tax prescribed under Section 196 of the Tax Code of 1997, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the same Code. (BIR Ruling No. DA-28-98 dated January 29, 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 null and void. aECSHI Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal and Inspection Group