BIR Ruling [DA-059-99]

February 5, 1999 BIR RULING [DA-059-99] HWA Chong Temple of Buddha, Inc. Tugatong, Malabon, Metro Manila Attention: Rev . Shi Sui Kim Gentlemen : This refers to your letter dated July 6, 1998 requesting for a ruling as to whether or not the Deed of Donation executed by Hwa Chong Temple of Buddha, Inc. of Tugatong, Malabon, Metro Manila, in favor of Tianlian Buddhist Temple, Inc. with principal office at 678 A. Bonifacio Road, Balintawak, Quezon City covering two (2) parcels of land covered by Transfer Certificates of Title Nos. RT-42577 (239620) and RT-42578 (239621) of the Registry of Deeds of Quezon City, is exempt from the payment of donor's tax and documentary stamp tax. Documentary evidence submitted disclosed that Tianlian Buddhist Temple, Inc. is a religious corporation organized and registered with the Securities and Exchange Commission for the purpose of administering its affairs, properties and temporalities; that the institution is governed by a Board of Trustees who receives no compensation and all its income is devoted to the affairs, properties and temporalities of the corporation; that Hwa Chong Temple of Buddha, Inc., likewise a religious, non-stock and non-profit corporation donated the above two (2) parcels of land containing an area of Two Hundred Five Square Meters and Fifty Square Decimeters each, located at Balintawak, Quezon City in favor of Tianlian Buddhist Temple, Inc. In reply, please be informed that inasmuch as the donee is a religious corporation, the aforementioned donation is exempt from the payment of the 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. Moreover, the aforesaid Deed of Donation is subject to documentary stamp of P15.00 imposed under Section 188 of the same Code. (BIR Ruling No. DA-195-97 dated April 28, 1997 and 108-94 dated May 30, 1994) 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. cdta Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)