BIR Ruling [DA-057-04]

February 9, 2004 BIR RULING [DA-057-04] 101 (A) (3) DA 254-00 Padilla Law Office 7/F Padilla-De Los Reyes Building 232 Juan Luna Street Binondo, Manila Attention: Atty. Sabino Padilla, Jr. Gentlemen : This refers to your letter dated December 1, 2003 requesting for exemption from the payment of donor's tax over a parcel of land donated by the Roman Catholic Archbishop of Lipa in favor of the La Superiora General de las Misioneras Catequistas del Sagrado Corazon. It is represented that the Roman Catholic Archbishop of Lipa (Donor),is a corporation sole duly organized and existing under the laws of the Philippines with address at the Archbishop's Residence, San Lorenzo Ruiz Road, Lipa City; that on the other hand, the La Superiora General de las Misioneras Catequistas del Sagrado Corazon, Inc. (Donee) is a corporation sole duly organized and existing under the laws of the Philippines with address at MCSH Motherhouse, Sabang, Lipa City; that the Donor is the owner in fee simple of forty (40) parcels of land with total land area of 9,049 square meters; and that on November 10, 2003, a Deed of Donation was executed by the parties to provide the Donee with a suitable site for its convent and house of formation. In reply thereto, please be informed that inasmuch as the donee is a religious corporation, 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 by the donee for administration purposes. Moreover, the Deed of Donation 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. DA254-00 dated June 02, 2000) 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. DIETcC Very truly yours, (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service