BIR Ruling [DA-195-97]

April 28, 1997 BIR RULING [DA-195-97] Fairview Bible Church, Inc. Lot No. 25, Block 10 Archer and Alarka Streets North Fairview, Quezon City Attention: Ms . Carmen L . Eslao Trustee and Deaconess Gentlemen : This refers to your letter dated March 24, 1997 requesting for exemption from payment of donor's tax in connection with the reconveyance (donation) of a parcel of land covered by TCT No. N-151851, by the Christian and Missionary Alliance Churches of the Philippines which property is actually and exclusively devoted to its Church lot and where its religious services, rites, sacraments and other ceremonies are being conducted. It is represented that Fairview Bible Church, Inc. is a non-stock, non-profit, religious corporation organized and existing under the laws of the Republic of the Philippines with SEC Registration No. ANO94-003139 dated August 18, 1994; that it is governed by a Board of Trustees elected by the general membership who do not receive compensation or any form of financial benefit; that your religious services, administration, programs and missionary work are funded out of the voluntary donations of its members, supporters and fraternal donors; that the funds received are devoted entirely and exclusively to carry out purely religious services such as the Sacrament of Baptism and Holy Communion, Sunday School, Worship Services, Bible Studies, Mission and Evangelism and other eleemosynary activities of the Church; and that no part of said revenue is paid to any individual by way of dividend or profit. In reply, please be informed that inasmuch as the donee is a religious institution, the aforementioned donation is exempt from the payment of the donor's tax pursuant to Section 94 of the Tax Code, as amended, subject to the condition that no more than 30% of said gifts shall be used by the donee for administration purposes. The Register of Deeds shall, however, annotate this condition at the back of Transfer Certificate of Title because failure to comply with the said condition shall be a ground for the revocation of the donation pursuant to Article 764 of the New Civil Code. cdt Moreover, the aforesaid Deed of Donation is not subject to the documentary stamp tax prescribed under Section 196 of the Tax Code, as amended, but only to the documentary stamp tax of P3.00 imposed under Section 188 of the same Code. (BIR Ruling No. 108-94 dated May 30, 1994). Very truly yours, SIXTO S. ESQUIVIAS IV OIC, Assistant Commissioner (Legal Service)