BIR Ruling [DA-070-01]

April 20, 2001 BIR RULING [DA-070-01] 101 (A) (3) 28-98 St . Scholastica's College 2560 Leon Guinto Street P.O. Box 3153, Manila Attention: Dr . Linda Flor B . Gil Vice President for Administrative Affairs Gentlemen : This refers to your undated letter requesting an exemption from the payment of donor's tax prescribed under Section 101(A)(3) of the Tax Code of 1997. Documents submitted disclosed that in consideration and recognition of St. Scholastica's College, and in order to upgrade the school structure and services, L & M Maxco Company, Inc. donated to the former, additive bored piling works, to wit: "DONOR hereby agrees to transfer and convey, by way of Donation, free from all liens and encumbrances, the following described works, with all the peripherals thereon, and with a total cost of Ninety Two Thousand Seven Hundred Eighty Nine & 03/100 (P92,789.03) 1.1) Removal of Underslab Structures 1.2) Additional Two (2) 600mm diameter bored piles" In reply, please be informed that inasmuch as the donee is an educational 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-18-98 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 considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Acting Assistant Commissioner Legal Service