BIR Ruling [DA-127-03]

April 22, 2003 BIR RULING [DA-127-03] 101 (A) (2); DA-257-2000 National Academy of Science and Technology Philippines 2/F Philippine Science Heritage Center, DOST Complex Bicutan, Taguig, Metro Manila Attention: Ms. Luningning E. Samarita Executive Director Gentlemen : This refers to your letter dated November 5, 2002 requesting exemption from the payment of donor's tax on the donation made to the National Academy of Science and Technology (NAST) by different organizations and institutions. It appears that the National Academy of Science and Technology (NAST) is a government agency under the Department of Science and Technology (DOST) and created under P.D. 1003-A, as amended, tasked to recognize outstanding achievements in science and technology and to give advice to the President of the Philippines on matters related to science and technology; that in line with its mandate, NAST, embarked on a program to recognize and promote Filipino contributions to the world of science that led to the passage of Republic Act No. 9107, establishing the Philippine Science Heritage Center, that in order to carry out the functions and objectives of the Philippine Science Heritage Center, it shall be managed, operated and maintained by NAST; that considering the current budgetary constraints of the government, NAST explored linkages with other institutions and organizations which sympathize with the cause of advancing science in the country; and that some of these organizations expressed their willingness to support some programs for the said Center as well as for other scientific programs and activities of NAST. acEHCD In reply, please be informed that pursuant to Section 101 (A) (2) of the Tax Code of 1997, gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government is exempt from donor's tax. Such being the case, the intended donation to NAST by different organizations and institutions is exempt from donor's tax pursuant to the aforecited provision of the Tax Code of 1997. 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. (BIR Ruling No. DA-257-2000 dated June 5, 2000) 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. EcTCAD Very truly yours, (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service