BIR Ruling [DA-225-00]

May 5, 2000 BIR RULING [DA-225-00] 101 (A) (3) 481-98 DA-225-2000 Community of Learners Foundation, Inc. #1 Castilla St., Valencia, Quezon City Attention: Mrs . Felicisima De Los Angeles-Bautista Executive Director Gentlemen : This refers to your letter dated February 29, 2000 requesting exemption from the payment of donor's tax on the donation of two (2) parcels of land situated in Quezon City covered by Transfer Certificate of Title Nos. N-151208 and N-151209 issued by the Registry of Deeds for the Quezon City, by Mrs. Julie Co Lim married to Jose N. Lim in favor of the Community of Learners Foundation, Inc. It appears that the Community of Learners Foundation, Inc. is a non-stock, non-profit educational institution duly recognized by the Department of Education, Culture and Sports under Government Recognition No. S-008 series of 1997; that it is registered with the Securities and Exchange Commission under SEC Registration No. 114352 dated July 18, 1983; and that it is authorized to operate a Complete Secondary Course. prcd In reply, please be informed that inasmuch as the donee is an educational institution, 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 donee for administration purposes. Moreover, the Deed of Donation 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 of 1997. (BIR Ruling No. DA-481-98 dated November 9, 1998) 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. llcd Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Acting Assistant Commissioner (Legal Service)