BIR Ruling [DA-230-96]

July 8, 1996 BIR RULING [DA-230-96] Sycip, Gorres, Velayo & Co. Cor. Gorordo & Gen. Maxilom Avenues Cebu City Attention: Atty . Lauris L . del Pea Tax Division Gentlemen : This refers to your letter dated May 8, 1996 requesting, in behalf of your client, the Society of the Divine Word Southern Province, Inc. (SDW-SP), for exemption under Section 94 (a)(3) of the Tax Code, as amend, of the following donations: Donor Description of Property Fr. Romeo P. Bancale, SVD A parcel of land with an area of five hundred twenty five (525) square meters located in Libaong, Panglao, Bohol covered by Original Certificate of Title No. 53247. Society of the Divine Four parcels of land described as Word, Inc. follows: Four thousand six hundred fifty (4,650) square meters located in Washington, Surigao City covered by Transfer Certificate of Title (TCT) No. T-6973; One thousand and fourteen (1,014) square meters located in Talomo, Davao City located in Talomo, Davao City covered by Transfer Certificate of Title No. T-73913. One thousand three hundred ninety-eight (1,398) square meters located in Cogon, Cebu City covered by Transfer Certificate of Title No. T-84642; and Society of the Divine One hundred thirty three thousand eight Word, Inc. hundred thirty four (133,834) square meters located in Catalunan Grande, Davao City covered by Transfer Certificate of Title No. T-76407. Fr. Danilo Noval, SVD A parcel of land with an area of seventy Fr. Ruby Tagaro, SVD one thousand five hundred fifty one Fr. Pio Eugenio, SVD (71,551) square meters located in San Andres, Bunawan, Agusan del Sur covered by Transfer Certificate of Title No T-1744. in favor of SDW-SP by virtue of the Deeds of Donations executed on March 20, 1996 and April 25, 1996, respectively. Documents submitted to this Office show that the SDW-SP is a non-stock, non-profit religious institution duly registered as a donee institution under Batas Pambansa Bilang 45, amending Section 29(h) of the Tax Code, as implemented by BIR-NEDA Regulations Nos. 1-81 and 10-82 Certificate of Registration No. 2358 dated March 28, 1995. In reply, please be informed that inasmuch as the donee is a religious institution duly registered as a qualified donee institution under Batas Pambansa Blg. 45, amending Section 29 (h) of the Tax Code, as implemented by BIR-NEDA Regulations Nos. 1-81 and 10-82, that aforementioned donations are exempt from the payment of donor's tax pursuant to Section 94 (a)(3) of the Tax Code, as amended, subject to the condition that not more than 30% of said gifts shall be used by the donee for administration purposes. Moreover, that aforesaid Deeds of Donation are not subject to documentary stamp tax prescribed under Section 196 of the Tax Code as amended but only to the documentary stamp tax of P15.00 imposed under Section 188 of the same Code, as amended. This ruling is being issued on the basis of the foregoing facts a represented. However, if upon investigation, it will be disclosed that the facts are different, and/or any of the requirements imposed under this letter are not complied with, then this ruling shall be considered null and void. (BIR Ruling No. 032-94 dated February 3, 1994) cdta Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)