BIR Ruling [DA-220-04]

April 23, 2004 BIR RULING [DA-220-04] 101 (A) (3) DA-18-98 Follosco Morallos & Herce Suite 1506, 15th Floor, 88 Corporate Center 141 Valero Street corner Sedeno Street Salcedo Village, Makati City Attention: Atty. Rachel P. Follosco Gentlemen : This refers to your letter dated November 14, 2003 requesting on behalf of your client El Superior de la Corporacion Filipina de Padres Agustinos Recoletos, Inc. (El Superior) , for a confirmation of your opinion that donations made in its favor are exempt from donor's tax prescribed under Section 98 of the Tax Code of 1997, in view of the provisions of Section 101 of the same Tax Code. It is represented that El Superior is a corporation sole duly registered under Philippine law; that El Superior is the donee of two lots donated by La Provincia de San Nicolas de Tolentino de las Islas Filipinas de la Orden de Padres Agustinos Recoletos (La Provincia) pursuant to separate deeds of donation executed in its favor; that La Provincia is the owner in fee simple of the said two lots covered by TCT No. RT-7076 (T-1253) and TCT No. RT-7461 (32922), more specifically described as: 1. Cebu Property "A PARCEL OF LAND (lot No. 2326-B described on plan swo-4631, LRC Record No. 9265), situated in the city of Cebu, Island of Cebu, Bounded on the SE., along line 1-2, by Magallanes Street (20M. wide); on the SW., along line 2-3, by Leon Kilat Street (15 M wide); on the NE., along line 4-5, by Nellas Carmelo Street (20 M. wide). Beginning at a point marked "I" on plan being N. 78 deg. 13'W. 731.72 m. from B.L.L.M No. 1, Cebu Cadastre, thence; S. 78 deg 05'W., 66.60 m. to point 2; thence N. 14 deg. 07'W., 83.37 m. point "3", thence N. 75 deg. 20'E., 107.05 m. to point "4"; thence S. 14 deg. 15'E 78.36 m. to point "5", thence S.63 deg. 59'W., 41.56 in to point of beginning; containing an area of NINE THOUSAND ONE SQUARE METERS (9001). All points referred to are indicated on the plan and marked on the ground as follows; point 1, by OLD P.L.S./B.L., concrete Monuments, 20 x 20 x 60 centimeters, and the rest, by P.L.S. Cylindrical concrete monuments 15 x 60 centimeters; bearings true; date of the original survey, during 1911". 2. San Carlos Property "A PARCEL OF LAND (Lot No. 143 of the Cadastral survey of San Carlos), situated in the Municipality of San Carlos, Bounded on the NE by Calle Castro; on the SE by Lot Nos. 2910 and 141; on the SW by Lot No. 142; and on the NW by Lot No. 2909. Beginning at a point marked "1" on the plan, being N. 15 deg. 15'E, 237.38m. from B.B.N. No. 32; thence N. 38 deg. 08'W., 72.78 m. to point "2", thence W.56 deg. 34'E. 179.34 mm to point thence S. 23 deg. 38'E, 88.86 m. to point "4", thence S. 61 deg. 50'W., 109.19 m. to point "5"; thence S. 62 deg. 22"W., 49.77 m. to the point of beginning containing an area of THIRTEEN THOUSAND FIVE HUNDRED AND SEVENTY-FIVE SQUARE METERS (13,757), more or less. All points referred to are indicated on the plan; bearings true; declaration 1 deg. 40'E, date of survey, February 1919 May 1922." In reply, please be informed that inasmuch as the donee is a religious institution, the aforementioned 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 for administration purposes. HaSEcA Moreover, the aforesaid Deed of Donation is not subject to documentary stamp tax prescribed under Section 196 of the Tax Code of 1997, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the same Code. ( BIR Ruling No. DA-18-98 dated January 29, 1998 ) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigations 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.) MILAGROS V. REGALADO Assistant Commissioner Legal Service