BIR Ruling [DA-181-99]

March 23, 1999 BIR RULING [DA-181-99] Office of the Mayor Marikina City Attention: Mr . Melvin A . Cruz City Administrator Gentlemen : This refers to your letter dated June 29, 1998 requesting in effect for a ruling on the donation of parcels of land by the Rural Bank of Angono, Inc. to the City of Marikina for the implementation of the latter's Marikina River Park rehabilitation project. Documents submitted show that the Rural Bank of Angono, Inc. is the owner of five (5) parcels of land situated at Barangay Sta. Elena, Marikina City covered by Transfer Certificates of Title Nos. 150124, 154181, 154182, 154183, 154184 and 154185 of the Registry of Deeds for Marikina, Metro Manila; that the City of Marikina is implementing the DPWH-PMO Mangahan Floodway Project Memorandum Letter dated December 1, 1993 to preserve the effectiveness of the Marikina River as a floodway to avert the flooding of the valley; that the City is in the process of rehabilitating and beautifying the Marikina River Park; that in response to this noble cause, the Rural Bank of Angono, Inc. donated the aforementioned parcels of land which may be used for the purpose. In reply, please be informed that the donation by the Rural Bank of Angono, Inc. to the City of Marikina is exempt from donor's tax in view of Section 101(A)(2) of the Tax Code of 1997, which provides that gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government shall be exempt from tax. (BIR Ruling No. 021-96 dated February 21, 1996) 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. LexLib Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)