BIR Ruling [DA-177-05]

April 20, 2005 BIR RULING [DA-177-05] Section 101 (A) (3); S30-056-2001 Ricardo J. M. Rivera, Esq. Unit 2001, Jollibee Plaza Condominium Emerald Avenue, Ortigas Center, Pasig S i r : This refers to your letter dated January 17, 2005 requesting for exemption from the payment of donor's tax relative to the donation of a parcel of land by Filinvest Land, Inc. in favor of the Diocese of Novaliches by virtue of a Deed of Donation executed on November 30, 2004. It appears that you write in behalf of the Diocese of Novaliches, located at the Cathedral of Good Shepherd, Regalado Avenue Extension, Fairview Park I, Quezon City and also the Christ the King Parish located at Atlas Road, Filinvest II, Batasan Hills, Quezon City; that for more than a decade now, Christ the King was made into a parish under the Archdiocese of Manila; that the residents of Filinvest II have enjoyed the catholic church they built in their subdivision after the developer, Filinvest Development Corporation, promised, through a Memorandum of Agreement dated March 3, 1988, to donate to the Diocese the part of the open space as church site; that Filinvest finally executed a Deed of Donation dated November 26, 2004 in favor of the Diocese. In reply, please be informed that inasmuch as the donee is a religious organization, 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 by the donee for administration purposes. acSECT Moreover, the Deed of Donation is not subject to the 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 Tax Code. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group