BIR Ruling [DA-267-00]

June 23, 2000 BIR RULING [DA-267-00] 101 DA-195 & 379-97; 108-94 DA-267-2000 St. Mary's Publishing Corporation 3/F, VCC Building 1308 P. Guevarra Street Sta. Cruz, Manila Attention: Mr. Jerry Vicente Catabijan President Gentlemen : This refers to your letter dated May 2, 2000, which was indorsed to this Office by Mayor Jinggoy Ejercito Estrada of San Juan requesting for exemption from the payment of donor's tax relative to your donation of elementary and secondary books for municipal libraries identified under the Memorandum of Agreement between the League of Municipalities of the Philippines and the Philippine Educational Publishers Association (PEPA). In reply, please be informed that since the donee, the League of Municipalities of the Philippines is a political subdivision of the Government, the aforementioned donation of various textbooks valued at P887,980.00 is exempt from the payment of donor's tax pursuant to Section 101(A)(2) of the Tax Code of 1997. (BIR Ruling No. DA-379-97 dated November 12, 1997) Moreover, the aforesaid Deed of Donation is not subject to the documentary stamp tax under Section 196 of the Tax Code of 1997 but only to the documentary stamp of P15.00 on certification under Section 188 of the same Code. (BIR Ruling No. DA-195-97 dated April 28, 1997 and BIR Ruling No. 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 as null and void. Very truly yours, Commissioner of Internal Revenue (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group