BIR Ruling [DA-135-01]

August 8, 2001 BIR RULING [DA-135-01] 101 DA-379 & 195-97; 108-94 Office of the Governor 2/F, Bulacan Provincial Capitol Bldg. MacArthur Hi-way, Malolos Bulacan Attention: Ms . Ma . Gladys C . Sta . Rita Provincial Administrator Gentlemen : This refers to your letter dated June 6, 2001 requesting a Certificate of Exemption from the payment of donor's tax relative to the donation of two (2) parcels of land with a total area of 600,000 square meters by the North Luzon Railways Corporation in favor of the Province of Bulacan, which lots are intended to be used as relocation site for the families who will be displaced by the construction of the Manila-Clark Rapid Railway System, a flagship project of the National Government. In support of your request you attached photocopies of the following documents: 1. Deed of Donation; 2. TCT No. T-310021(M); 3. TCT No. T-310023(M); 4. Tax Declaration of Real Property of the two parcels of land; 5. Sangguniang Panlalawigan Resolution No. 97-124; and 6. Memorandum of Agreement between the Provincial Government of Bulacan and the North Luzon Railways Corporation In reply, please be informed that since the donee is a political subdivision of the Government, the aforementioned donation of two (2) parcels of land, is exempt from the payment of donor's tax pursuant to Section 101(A)(2) of the Tax Code of 1997. (BIR Ruling No. DA-379-97 dated November 12, 1997) Moreover, the aforesaid Deed of Donation is not subject to the documentary stamp tax under Section 196 of the Tax Code of 1997 but only to the documentary stamp tax of P15.00 on certification under Section 188 of the same Code. (BIR Ruling No. DA-195-97 dated April 28, 1997 and BIR Ruling No. 108-94 dated May 30, 1994) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner Legal and Inspection Group