BIR Ruling [DA-256-98]

June 19, 1998 BIR RULING [DA-256-98] Cruz-Feliciano Law Offices 3rd Floor, Feliciano Building 7426 Santillan, Makati City Attention: Atty . Myrna Cruz-Feliciano Gentlemen : This refers to your letter dated May 8, 1998 requesting for a ruling as to whether or not the Deed of Donation executed by Mr. Lagrimas R. Dizon in favor of the Major Superior of the Rogationist Fathers, Inc. covering a parcel of land and improvements thereon situated at Muntinlupa City and covered by Transfer Certificate of Title No. S-48361 of the Registry of Deeds of Makati City is exempt from the payment of donor's tax and documentary stamps. LibLex It is represented that the donee, Major Superior of the Rogationist Fathers, Inc., is a non-stock, non-profit corporation sole duly organized under the laws of the Philippines with principal office at Paraaque, Metro Manila for the purpose of practising, propagating and teaching the Roman Catholic doctrine and faith and in connection therewith, engaged in activities aimed at uplifting the welfare of the poor, handicapped and underprivileged people of this country, education and assistance of the youth under the jurisdiction of the Roman Catholic Church. In reply, please be informed that inasmuch as the donee is a religious institution, the aforementioned donation is exempt from the payment of the 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 the said gifts shall be used by the donee for administration purposes. The Register of Deeds shall, however, annotate this condition at the back of Transfer Certificate of Title because failure to comply with the said condition shall be a ground for the revocation of the donation pursuant to Article 764 of the New Civil Code. Moreover, the aforesaid Deed of Donation is not subject to the documentary stamp tax prescribed under Section 196 of the Tax Code of 1997, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the same Code. (BIR Ruling No. DA-195-97 dated April 28, 1997 and 108-94 dated May 30, 1994) 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. LLphil Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner Legal and Enforcement Group