BIR Ruling [DA-100-99]

February 17, 1999 BIR RULING [DA-100-99] Cruz-Feliciano Law Offices 3rd Floor, Feliciano Building 7426 Santillan, Makati City Attention: Atty . Myrna Cruz-Feliciano Gentlemen : This refers to your letter dated November 9, 1998 requesting for exemption from the payment of donor's tax on the donation of a parcel with improvements thereon by Rosalea R. Amandy in favor of the Local Superior of the Franciscan Sisters of the Sacred Hearts, Inc. LibLex It appears that the donor is the registered owner of a parcel of land situated at Paraaque, Metro Manila and covered by Transfer Certificate of Title Nos. 27938 and 124545 issued by the Register of Deeds of Paraaque, Metro Manila; that the donee, the Local Superior of the Franciscan Sisters of the Sacred Hearts, Inc. is a non-stock, non-profit corporation sole duly organized under the laws of the Philippines with principal Office at Paraaque, Metro Manila organized for the purpose of practising, propagating and teaching the Roman Catholic doctrine and faith; and that it is engage in activities aimed at uplifting the welfare of the poor, handicapped and underprivileged people, education and assistance of the youth under the jurisdiction of the Roman Catholic Church. In reply, please be informed that inasmuch as the donee is a religious institution, 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 the said gift shall be used by the donee for administration purposes. Moreover, the Deed of Donation executed for the purpose 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. dctai Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)