BIR Ruling [DA-193-05]

April 21, 2005 BIR RULING [DA-193-05] 101 (A) (3); DA-481-98 RJH Consultancy, Inc . 331 San Antonio St.,Ayala Alabang Village Muntinlupa City Attention: Ms. Eliza C. Aure Accountant Mr. Sofronsio S. Sanqui President Gentlemen : This refers to your letter dated August 2, 2004 requesting exemption from the payment of taxes that may be imposed on the donation made by RJH Consultancy, Inc. with the above stated address to Don Bosco Technical Institute of Makati, Inc. with address at San Lorenzo Village, Makati City and to Maritime Academy of Asia and the Pacific with office address at Bgy. Alas-asin, Mariveles, Bataan, of the following equipments more particularly described as follows: Donated equipment to Don Bosco Technical Institute: 1. One (1) unit M15 Titanium Plate from Plate Heat Exchanger amounting to US$476.00 or P26,560.80 Donated equipments to Martime Academy of Asia and the Pacific 1. One (1) NIREX Fresh Water Distiller Type: JWP-26-C-80 Unit #:N-6584 Year: 1995 Capacity: 25M3/24hrs Amount: US$7,335.00 P409,293.00 2. Three (3) units M15 Titanium Plate from Plate Heat Exchanger Amount: US$1,428.00 P79,682.40 In reply, please be informed that inasmuch as the donees are educational institutions, the aforesaid donations are 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 gifts shall be used by the donee for administration purposes. LLjur Moreover, the Deeds of Donation executed for the purpose are not subject to the documentary stamp tax. However, the notarial acknowledgment on said deed 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.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group