Dominican Daughters of the Immaculate Mother

February 1, 2008 BIR RULING [DA-060-08] 101 (A) (3); DA-028-98; DA-407-2003 Dominican Daughters of the Immaculate Mother 872 St. Joseph Street, Commonwealth Quezon City Attention: Sr. Ma. Gloria A. Paguio, O.P. Treasurer General Mesdames : This refers to your letter dated August 21, 2007 requesting for a ruling that the donation made by Spouses Felipe and Angelita Cruz in favor of Dominican Daughters of the Immaculate Mother, Inc. ("DDIM") is exempt from the payment of donor's and documentary stamp taxes. It is represented that DDIM is a non-stock, non-profit religious organization duly organized and existing under and by virtue of the laws of the Republic of the Philippines, solely devoted to religious and charitable works. On August 8, 2007, a Deed of Donation was executed by Spouses Felipe and Angelita Cruz, whereby they donated to DDIM a parcel of land situated in Angat, Bulacan, containing an area of 1,000 square meters, particularly described as Lot 5178-A-2-A (LRA) Psd-390454, being a portion of a parcel of land containing an area of 6,853 square meters, and covered by Transfer Certificate of Title No. T-421226 (M) of the Registry of Deeds of Meycauayan, Bulacan. The subject donated land will be used exclusively for the religious and educational purposes of the Congregation. In reply, please be informed that since DDIM is a nonstock, nonprofit religious and educational institution/organization, 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. cAHIaE Moreover, the Deed of Donation executed is 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) 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, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service