BIR Ruling [DA-147-99]

March 11, 1999 BIR RULING [DA-147-99] Ms. Jacqueline Yu-Flores No. 15, Atok Street, Sta. Mesa Heights Quezon City M a d a m : This refers to your letter dated January 27, 1999 requesting for exemption from the payment of donor's tax prescribed under Section 101(A)(3) of the Tax Code of 1997. LibLex Documents submitted disclosed that Ms. Jacqueline Yu-Flores donated a parcel of land to Southern Fragrance Temple, Inc., a religious corporation organized and existing under Philippine Laws; that the purposes for which the corporation is organized are as follows: 1. To promote the welfare of all believers of Buddhism, provide a meeting place for their religious, social, fraternal and such other purpose or purposes in connection their belief in the principles of Buddhism; 2. To solicit voluntary contributions exclusively from its members, acquire real property for its use by means of donations or thru purchase using funds voluntarily contributed by its members, and to provide means for its maintenance in accordance with existing law and regulation of the Republic of the Philippines; 3. In general, to take necessary steps in the propagation of Buddhism, and to do and perform any and all things which may be reasonably necessary, proper or convenient for the due carrying out of the purposes of the corporation, and to exercise any and all rights, powers and attributes of other like corporations of like nature organized under and by virtue of the laws of the Republic of the Philippines. that the donor is the absolute owner of a parcel of land covered by Transfer Certificate of Title No. 79358 issued by the Registry of Deeds of Quezon City; and that the subject property is located at Barangay Matalahib, Quezon City and has an area of Three Hundred Seventy Five (375) Square Meters. In reply, please be informed that inasmuch as the donee is a religious institution, the aforementioned 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 aforesaid 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. DA-28-98 dated January 29, 1998) dctai This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclose that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)