BIR Ruling [DA-079-01]

May 4, 2001 BIR RULING [DA-079-01] 101 (A) (3) 481-98 The Superintendent of the Norwegian Missionary Alliance in the Philippines, Inc . No. 158 Mother Ignacia Avenue, Quezon City Attention: Ms . Delia M . Ilagan President, Shalom Learning Center, Inc. Gentlemen : This refers to your letter dated January 8, 2001 requesting exemption from the payment of donor's tax on the donation of parcels of land by the Superintendent of the Norwegian Missionary Alliance in the Philippines, Inc. to the Shalom Learning Center, Inc. It appears that Norwegian Missionary Alliance in the Philippines, Inc. is a religious corporation sole duly registered with the Securities and Exchange Commission on February 18, 1980 under SEC Registration No. 9128; that it is the registered owner of two (2) parcels of land consisting of One Thousand Seven Hundred Seventy Two (1,772) square meters and Three Thousand (3,000) square meters respectively; that these parcels of land are situated at Diliman, Quezon City covered by Transfer Certificate Title Nos. RT-50725 (277669) and RT-50724 (351124) issued by the Registry of Deeds for Quezon City; that on October 16 and 18, 2000, Deeds of Donation covering the aforementioned parcels of land were executed by the Superintendent of the Norwegian Missionary Alliance in the Philippines, Inc. in favor of the Shalom Learning Center, Inc.; and that Shalom Learning Center is a non-stock, non-profit educational corporation, paying no dividends, governed by trustees who receive no compensation, and devoting all its income, whether students' fees or other forms of philanthropy, to the accomplishment and promotion of its purposes. In reply, please be informed that inasmuch as the donee is a non-stock, non-profit educational corporation, the aforesaid 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. DA-481-98 dated November 9, 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