BIR Ruling [DA-240-00]

May 17, 2000 BIR RULING [DA-240-00] 101 (A) (3) 481-98 DA-240-2000 Quinones Villanueva Law Firm Rm. 210 J & C Building, Nueno, Avenue Imus, Cavite Attention: Atty . Gavina Punzalan Gentlemen : This refers to your letter dated October 8, 1999 requesting exemption from the payment of donor's tax on the donation of a parcel of land by Natalia Tapawan to Imus National High School. It appears that Natalia Tapawan married to Frigdiano Rosales of #129 M. Acosta St., Pasay City, is the registered owner of a parcel of land situated at Bgy. Bukandala, Imus, Cavite covered by Transfer Certificate of Title No. T-103875 issued by the Registry of Deeds for the Province of Cavite, consisting of One Thousand Three Hundred Fifty Two (1,352) square meters; that the Imus National High School, a government educational institution situated at Bukandala, Imus, Cavite is the lone public high school of Imus, Cavite catering to the needs of Bgy. Bukandala, Imus, Cavite; that on October 11, 1999 a Deed of Donation was executed by and between Natalia Tapawan and the Imus National High School whereby Natalia Tapawan, transferred, ceded and conveyed by way of donation to the Imus National High School its successors and assigns the abovementioned parcel of land; and that the donation is not subject to collation in case of death of the donor. 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, (SGD.) MILAGROS V. REGALADO Acting Assistant Commissioner (Legal Service)