BIR Ruling [DA-127-99]

March 3, 1999 BIR RULING [DA-127-99] La Mar Realty and Developers, Inc. 3rd Floor, Rempson Bldg. 308 Shoe Avenue, Sto. Nino Marikina City Attention: Mrs . Conchita C . Tan President Gentlemen : This refers to your letter dated August 4, 1998 requesting for an 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 certain parcel of land in favor of the Roman Catholic Bishop of Antipolo. It appears that the donor is the registered owner of a certain parcel of land with a halfway constructed chapel thereon located at La Mar Village, Kambal Road, Gitnang Bayan II, San Mateo, Rizal; that said parcel of land has an area of Seven Hundred Eighty Six (786) sq. m.; and that it is covered by Transfer Certificate of Title No. 285505 issued by the Registry of Deeds for Marikina, Metro Manila. 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 for administration purposes. Moreover, the Deed of Donation is not subject to 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. (BIR Ruling No. 011-94 dated January 10, 1994) 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. Cdphil Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)