Mission Congregation of the Servants of the Holy Spirit

April 17, 2007 BIR RULING [DA-238-07] 101 (A) (3); 044-2002 Mission Congregation of the Servants of the Holy Spirit Convent of the Holy Spirit P.O. Box 3553, Manila Attention: Sister Imelda Boquiren, SSpS Treasurer Gentlemen : This refers to your letter dated February 13, 2007 requesting on behalf of Mother Josepha Development Foundation, Inc. , for exemption from the payment of donor's tax on the donations received from its benefactors. It appears that Mother Josepha Development Foundation, Inc. is a non-stock, non-profit charitable corporation duly registered with the Securities and Exchange Commission under SEC Registration No. AN095-01150; that it had been granted tax exemption certificate under BIR Ruling No. RR7-003-264 dated September 15, 2003; and that its main source of income are donations received from generous benefactors. In reply, please be informed that inasmuch as the donee is a charitable non-stock, non-profit corporation, donations are exempt from the payment of donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, as amended, 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 that will be executed for the purpose 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, as amended. cSCTEH 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