BIR Ruling [DA-149-02]

September 6, 2002 BIR RULING [DA-149-02] 101 (A) (3) DA-481-98 Occidental Mindoro National College San Jose, Occidental Mindoro Attention: Mr. Sofronio S. Sanqui President Gentlemen : This refers to your letter dated August 15, 2002 requesting exemption from the payment of taxes that may be imposed on the donation made by the Jopson Aqua-Livestock Integrated Resources, Inc. with office address at No. 8, Paraiso St., SFDM, Quezon City, to Occidental Mindoro National College, of a parcel of land more particularly described as follows: "A Parcel of Land Lot 672-A-2-A-1-C-1 of the subdivision plan Psd-04- ___________ being a portion of lot 672-A-2-A-1-C, (LRA Psd-349503 situated at Brgy. Lumangbayan, Municipality of Mamburao, Province of Occidental Mindoro, Island of Mindoro. Bounded on the North and NW along lines 4-5-6 by lot 672-A-2-A-1-2 of the Subdivision plan, on the East along lines 6-1-2-3 by lot 672-B(LRC) Psd-2272 and on the South and SW along lines 2-3-4 by lot 672-A-2-A-1-C-3 if the subdivision plan. (Existing concrete road) . . . containing an area of One Thousand (1,000) Square Meters. . . ." In reply, please be informed that inasmuch as the donee is an educational 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 by the donee for administration purposes. Moreover, the Deed of Donation executed for the purpose is not subject to the documentary stamp tax. However, the notarial acknowledgment on said deed is subject to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997. ( BIR Ruling No. DA-481-98 dated November 9, 1998 ) Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service