BIR Ruling [DA-254-00]

June 2, 2000 BIR RULING [DA-254-00] Sec. 101 (A) (3) DA-172-2000; DA-481-98 DA-254-2000 Iglesia ni Cristo Pasig City Attention: Mr. Eladio de Castro INC Legal Officer Gentlemen : This refers to your letter dated March 6, 2000 requesting for exemption from the payment of donor's tax over a parcel of land donated to the Iglesia ni Cristo to a certain Pablo Q. De Leon. It is represented that Mr. Eladio de Castro is the Attorney-in-fact of the Iglesia ni Cristo (INC), a religious organization duly registered under the laws of the Philippines and administered by Executive Minister Erano G. Manalo, as corporation sole; that by virtue of said Special Power of Attorney by said Executive Minister of the INC, the named attorney-in-fact hereby requests for this tax exemption; that, as represented, a parcel of land, particularly Lot 1613-B, containing an area of One thousand five hundred (1,500)square meters, situated in Sitio Bolo-bolo, Barangay Quisao, Municipality of Pililla, Province of Rizal, was conveyed verbally to the INC sometime in 1986 by a certain Pablo Q. De Leon, a member and minister of said church; that in the same year, the members of the INC started to build their house of worship and other religious improvements upon said land; that on September 25, 1999 or after thirteen (13) years, the donor officially transferred the said parcel of land to the INC by way of Deed of Donation which was duly notarized on the same date; that you are of the opinion that pursuant to Section 101 of the 1997 Tax Code, donation for religious purposes shall be exempt from tax; and that likewise, by the benevolent decree of Section 28, paragraph 3 of the Legislative Department on the rule of taxation of the New Constitution of the Republic of the Philippines, "all lands, buildings and improvements actually, directly and exclusively used for religious purposes shall be exempt from tax." In reply, please be informed that inasmuch as the donee is a religious corporation, the aforementioned 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 1997 Tax Code. (BIR Ruling No. DA-481-98 dated November 9, 1998; DA-172-2000 dated March 24, 2000) 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, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Acting Assistant Commissioner Legal Service