BIR Ruling [DA-057-01]

April 2, 2001 BIR RULING [DA-057-01] 101 (A) (3) DA-028-98 Iglesia ni Cristo No. 1, Central Avenue, New Era Quezon City Attention: Mr . Restituto S . Lazaro Head, Legal Department Gentlemen : This refers to your letter dated November 17, 2000 requesting for exemption from the payment of donor's tax relative to the donation of several parcels of road lot made by Riviera Property & Development Corporation in favor of Iglesia Ni Cristo on the ground that the said donation or gift was given in favor of a religious corporation. It is represented that on May 9, 2000, Iglesia Ni Cristo purchased several parcels of land located at Riviera Court in Mirador Hills in Baguio City; and that on October 6, 2000, a Deed of Donation and Acceptance was executed by and between Riviera Property & Development Corporation as Donor and Iglesia Ni Cristo as Donee pertaining to several parcels of road lot situated at Riviera Court, Mirador Hills, Baguio City covered by Transfer Certificates of Title Nos. 40875, 40876 and 40877 all issued by the Registry of Deeds for the City of Baguio with an area of 267, 722 and 827 square meters, respectively. In reply, please be informed that since the donee, the Iglesia Ni Cristo is a non-stock non-profit religious corporation whose primary purpose is to propagate doctrines based on the teachings of the Bible, such donation of three parcels of road lot 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 the said gifts shall be used by the donee for administration purposes. The Register of Deeds shall, however, annotate this condition at the back of Transfer Certificate of Title because failure to comply with the said condition shall be a ground for the revocation of the donation pursuant to Article 764 of the New Civil Code. (BIR Ruling No. DA-28-98 dated January 29, 1998) Moreover, the aforesaid Deed of Donation and Acceptance is not subject to the documentary stamp tax under Section 196 of the Tax Code of 1997 but only to the documentary stamp tax of P15.00 on certification under Section 188 of the same Code. (BIR Ruling No. DA-195-97 dated April 28, 1997) 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.) MILAGROS V. REGALADO Acting Assistant Commissioner Legal Service