BIR Ruling [DA-265-00]

June 22, 2000 BIR RULING [DA-265-00] 101 (A) (3) 481-98 DA-265-2000 The Roman Catholic Archbishop of Manila 121 Arzobispo Street Intramuros, Manila Attention: Rev. Fr. Cesar V. Buhat Department Head Properties Administration Department Gentlemen : This refers to your letter dated July 2, 1999 requesting exemption from the payment of donor's tax on the donation of two (2) parcels of land by Biyaya Corporation to the Roman Catholic Archbishop of Manila. It appears that Biyaya Corporation is a corporation organized and existing under the laws of the Republic of the Philippines with principal address at No. 3111 Nagtahan Street, San Miguel, Manila; that it is the registered owner of two (2) parcels of land situated at Maligaya Park Subdivision, Novaliches, Quezon City consisting of Five Hundred and Eight (508) square meters, covered by Transfer Certificates of Title Nos. 43838 and 273738; that the Roman Catholic Archbishop of Manila is a corporation sole organized and existing under the laws of the Republic of the Philippines with principal office at No. 1000 General Solano Street, San Miguel, Manila; that the aforesaid real property shall be the site of the Roman Catholic chapel of the Saint Joseph the Worker Sub-Parish to be constructed by the Saint Joseph the Worker Sub-Parish Council and the parishioners; and that should the Saint Joseph the Worker Sub-Parish Council and parishioners fail to build the chapel or that the use of the property for a catholic church has ceased or that the Roman Catholic Archbishop of Manila violates any of the terms and conditions of the Deed of Donation, then the same shall be revoked and the ownership of the property donated shall automatically revert to the donor. In reply, please be informed that inasmuch as the donee is a religious corporation, 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 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. Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI OIC, Deputy Commissioner Legal & Inspection Group