BIR Ruling [DA-073-97]

February 20, 1997 BIR RULING [DA-073-97] Hon. Neptali A. Gonzales Senate Room 404, Executive House P. Burgos Drive cor. Finance St. and Taft Avenue, Manila S i r : This refers to your letter dated December 10, 1996 stating that prior to the incorporation of the United Church of the Good Shepherd (UCGS) on April 1, 1982, the then Church of the Good Shepherd purchased three parcels of land in Barangay Zaniga, Mandaluyong City which where placed in the names of the following members of the church namely: (1) TCT (46457) 19336 of the Registry of Deeds for Metro Manila, District II containing an area of 306 square meters in the name of Hon. Neptali Gonzales and; (2) TCT No. 381697 of the Registry of Deeds for the Province of Rizal containing an area of 299 square meters in the name of Ms. Oliva P. Francisco; that a portion of the property, covered by TCT No. 381697, i.e., 150 square meters belongs to Sesenio C. Rivera, Jr. as evidenced by Entry No. 13237-T-No. 381697 which also holds the same for UCGS; that this was done since the then Church of the Good Shepherd is not yet incorporated and had no personality to acquire real properties; that with the incorporation of UCGS, you executed a Deed of Donation of the property covered by TCT No. (46457) 19336 in favor of UCGS which is the real owner of said property; that Ms. Oliva P. Francisco also executed a Deed of Donation covering 149 square meters of the property covered by TCT No. 381697 in favor of UCGS; and, that Mr. Sesenio C. Rivera, Jr. likewise executed a Deed of Donation also in favor of UCGS covering 150 square meters of the property covered by TCT No. 381697 since the 150 square meters has not yet been segregated from the 299 square meter property covered by TCT No. 381697; and that the donee, UCGS is a non-stock, non-profit religious corporation duly organized and existing under Philippine laws with office address at 72 I. Lopez St., Mandaluyong City. cdt In reply thereto, please be informed that inasmuch as the donee is a non-stock, non-profit religious corporation, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 94 (a) (3) of the Tax Code, as amended subject to the condition that not more than 30% of the said gift shall be used by the donee for administration purposes. aisadc Moreover, the aforesaid Deed of Donation 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 same Code, as amended by R.A. No. 7660 (BIR Ruling No. 011-94 dated January 10, 1994) Very truly yours, ALICIA L. TOMACRUZ Head Executive Revenue Assistant (Legal Service)