MLD Admix Media Productions

March 27, 2007 BIR RULING [DA-188-07] 24; 101 (A); DA-074-2001 MLD Admix Media Productions 7D Eisenhower Condominium Greenhills, San Juan, Metro Manila Attention: Mary Lynn L. Domondon President Gentlemen : This refers to your letter dated March 12, 2007, requesting exemption from the payment of income tax, donor's tax and percentage tax on the proceeds that you will derive from the Dinner Concert which will be held on May 20, 2007 at the Crowne Plaza, Galleria, Ortigas Avenue, Mandaluyong City. aCIHAD It is represented that the proceeds of the said dinner concert will be donated to the following beneficiaries: 1. St. Lawrence the Martyr Parish of Balangiga, Easter Samar and 2. San Isidro Parish of Nagwaling, Pilar, Bataan and that the proceeds of the said concert will be used by San Isidro Parish for its catechetical, scholarship and outreach programs. In reply, please be informed that the proceeds that you will derive in connection with the holding of the said project are not subject to income tax and business taxes. Such income, however, should be declared in the annual information return to be filed by you on or before April 15, 2008. (BIR Ruling No. DA-074-2001 dated April 27, 2001) Likewise, inasmuch as the donees are charitable and/or religious institutions, 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 donees for administration purposes. TAECSD 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.) JAMES H. ROLDAN Assistant Commissioner Legal Service