Major Superior of the Rogationist Fathers, Inc.

March 2, 2007 BIR RULING [DA-128-07] 101 (A) (3); DA-044-02; DA-622-99 Major Superior of the Rogationist Fathers, Inc. C.M. Recto Avenue, Sta. Cruz Manila Attention: Rev. Fr. Enrique Raveza III, RCJ Gentlemen : This refers to your letter dated February 8, 2007 requesting exemption from the payment of donor's tax on the transfer of the 2,000 square meters portion of the parcel of land covered by Transfer Certificate of Title No. 166994 of the Registry of Deeds of Paraaque City, containing an aggregate area of 8,815 square meters, with improvements thereon, by R.T. Medina Holdings Incorporated in favor of the Major Superior of the Rogationist Fathers, Inc., a duly registered charitable non-stock, non-profit organization, in accordance with the provision of Section 101 (A) (3) of the Tax Code of 1997, as amended. In reply, please be informed that inasmuch as the donee is a non-stock, non-profit charitable corporation, the aforementioned donation is exempt from the payment of the 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 said gifts 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. (BIR Ruling Nos. DA-044-02 dated March 12, 2002 and DA-622-99 dated November 3, 1999) EICScD Moreover, the aforesaid 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. (BIR Ruling 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, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service