BIR Ruling [DA-185-99]

March 25, 1999 BIR RULING [DA-185-99] Padilla Law Office 7/F Padilla-De Los Reyes Bldg. 232 Juan Luna Street Binondo, Manila Attention: Atty . Sabino Padilla, Jr . Gentlemen : This refers to your letter dated February 25, 1999 requesting on behalf of your client, La Superiora Provincial de las Religiosas Misioneras de Santo Domingo , for exemption from the payment of donor's tax on the donation of two (2) parcels of land by Laguna Properties Holdings, Inc . and Balibago Land Corporation and Maunong Development Corporation . It appears that La Superiora Provincial de las Religiosas Misioneras de Sto. Domingo is a non-stock, non-profit, religious, charitable and educational corporation duly registered with the Securities and Exchange Commission under SEC Registration No. 6591 on April 17, 1986; that the donors are the registered owners of two parcels of land with an area of 20,000 sq. meters and 2,500 sq. meters covered by Transfer Certificate of Title No. T-37949 both located in San Antonio Heights, Bgy. San Antonio, Sto. Tomas, Batangas; and that you are not able to submit a xerox copy of the title because these two parcels of land are still included in a Master Title No. T-37949 and the issuance of separate tax declarations is still in progress. In reply, please be informed that inasmuch as the donee is a religious institution, the aforesaid donation is exempt from the payment of donor's tax pursuant to Section 101(A)(3) of the Tax Code 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 documentary stamp tax. However, the acknowledgment on said deed is subject to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code 1997. (BIR Ruling No. DA 481-98 dated November 9, 1998) llcd 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. Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)