BIR Ruling [DA-112-99]

February 25, 1999 BIR RULING [DA-112-99] Lao, Veloso-Lao & Lao Attorneys and Counsellors-at-Laws 10th Floor STRATA 100 Building Emerald Avenue, Ortigas Center Pasig City Attention: Atty. Arsenia Veloso-Lao Gentlemen : This refers to your letter dated October 20, 1998 requesting on behalf of your client, The Roman Catholic Bishop of Antipolo, Inc. for exemption from the payment of donor's tax prescribed under Section 101 (A) (3) of the Tax Code of 1997 on the donation of a parcel of land with improvements thereon by J.K.R. Merchandising Enterprises, Inc. It appears that the donor is the registered owner of a parcel of land situated in Taytay, Rizal covered by Transfer Certificate of Title No. 637801 with an area of 6,055 sq. m. issued by the Registry of Deeds of Taytay, Rizal. 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 said gift shall be used by the donee for administration purposes. SAaTHc Moreover, the Deed of Donation executed for the purpose is not subject to documentary stamp tax. However, the notarial 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.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)