BIR Ruling [DA-231-05]

May 25, 2005 BIR RULING [DA-231-05] Sec. 101 (A) (3);S30-009-03 Sisters Oblates of the Holy Spirit 146 Villaruel Street Pasay City Attention: Sr. Felicidad Barroga, OSS Treasurer M a d a m : This refers to your letter dated May 25, 2005 requesting exemption from the payment of donor's tax on the donation of a parcel of land with an area of 1.7288 hectares and covered by ARP No. 04007-00812 located at Brgy. Bacolod, Hinundayan, Southern Leyte made by Yolanda Fenix Bacani and Alberto P. Fenix in favor of the Congregation of the Sisters Oblates of the Holy Spirit, a religious society of the Roman Catholic Church and a district organization of the Congregazione Suore Dello Spirito Santo of Italy. HTCDcS In reply, please be informed that inasmuch as the donee is a religious 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 acknowledgement on said deed is subject to documentary stamp tax of P15.00 imposed under section 188 of the Tax Code of 1997. (BIR Ruling DA-S-30-009-03 dated April 4, 2003) 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. Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service