King Zeus Jupiter Celestial College, Inc.

March 4, 2008 BIR RULING [DA-119-08] 101 (A) (3); DA-677-2006 King Zeus Jupiter Celestial College, Inc. 69 Exodus St., Sto. Thomas Village 4 Deparo, Caloocan City Attention: Dr. Angel C. Rosario President Gentlemen : This refers to your letter dated November 10, 2007 requesting for exemption from the payment of donor's tax on the donation of a parcel of land by Roberto P.M. Acopiado to King Zeus Jupiter Celestial College, Inc. It is represented that King Zeus Jupiter Celestial College, Inc. is a non-stock, non-profit educational institution; that it is duly registered with Securities and Exchange Commission under SEC Registration No. CN200514482 dated July 17, 2007; that one of the primary purposes of the said educational institution is to establish and operate an educational institution or learning center which shall provide courses of study in Pre-school, Primary, Secondary, Vocational and Tertiary level subject to the laws of the Philippines; that Roberto P.M. Acopiado is the owner of the parcel of land situated at Deparo, Caloocan City, consisting an area of Two Hundred Fifty Seven (257) square meters, more or less, covered by TCT No. 498 issued by the Register of Deeds of Pasig City; that the donor voluntarily and freely donated the abovementioned property to King Zeus Jupiter Celestial College Inc., which accepted the aforementioned donation; and that Roberto P.M. Acopiado has reserved to himself sufficient property in full ownership adequate for his support. In reply, please be informed that inasmuch as the donee is an educational institution, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, as amended, subject to the condition that not more than 30% of the proposed gift shall be used by the donee for administration purposes. The Register of Deeds shall, however, annotate this condition at the back of the Transfer Certificate of Title because failure to comply with the said condition shall be a ground for the revocation of the donation pursuant to Article 764 of the New Civil Code. Moreover, the Deed of Donation is not subject to documentary stamp tax. However, the acknowledgement on said deed is subject to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997, as amended. 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.) JAMES H. ROLDAN Assistant Commissioner Legal Service