BIR Ruling [DA-129-99]

March 4, 1999 BIR RULING [DA-129-99] Office of Commercial Affairs ROYAL THAT EMBASSY 107 Rada St., Legaspi Village, Makati City Attention: Chana Kanaratanadilok Minister Counsellor Gentlemen : This refers to your letter dated January 13, 1999 requesting in effect, 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 second-hand imported cars in favor of the St. John Bosco Parish in Makati. It appears, that the donor, Office of Commercial Affairs, Royal Thai Embassy is the absolute owner of two (2) imported motor vehicles, RENAULT 21TS, model 1987 and 1988 with Serial Nos. VF114820501091954 and VF1L4830501091305, respectively; and that the vehicles were donated to the Don Bosco Parish, a Philippine Catholic Church. 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, provided, however, that not more than 30% of said gift/donation 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. Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)