BIR Ruling [DA-112-03]

April 4, 2003 BIR RULING [DA-112-03] 101 (A) (3) DA-142-02 Sta. Romana & Sta. Romana 79 Maysilo Corner San Francisco Streets Mandaluyong City Attention: Atty. Antonio B. Sta. Romana Gentlemen : This refers to your letter dated October 1, 2002 requesting exemption from the payment of donor's tax and the corresponding documentary stamp tax relative to the proposed donation of a parcel of land together with the improvements thereon to be made by the Alliance Publishers, Inc. (API) in favor of the Christian and Missionary Alliance Churches of the Philippines, Inc. (CAMACOP). It is represented that API is a non-stock, non-profit religious corporation created and existing under the laws of the Philippines; that it is the registered owner of one (1) parcel of land together with the. improvements thereon located at 13 West Capitol Drive, Pasig City covered by TCT No. 32735 issued by the Registry of Deeds for Pasig City; that CAMACOP is likewise a non-stock, non-profit religious corporation created and existing under the laws of the Philippines; that both corporations are located in the subject property which is being used for religious purposes; that API having the same purpose and mission is motivated to help CAMACOP in propagating its Christian Faith; and that API intends to donate the aforesaid property to CAMACOP. In reply thereto, please be informed that inasmuch as the donee is a religious corporation, 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 by the donee for administration purposes. Moreover, the Deed of Donation is not subject to the 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. 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, (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service