BIR Ruling [DA-269-05]

June 21, 2005 BIR RULING [DA-269-05] 101 (A) (3);S-30-009-03 The Roman Catholic Bishop of Paraaque 34 A. Aguirre Ave. cor. F. Cruz St. BF Homes Phase III Paraaque City Attention: Most Rev. Jesse E. Mercado, DD Bishop of Paraaque Gentlemen : This refers to your letter dated February 1, 2005 requesting exemption from the payment of donor's tax on the donation of a parcel of land from the United Housing Corporation, Philippine Tobacco Flue-Curing & Redrying Corporation, and Investment and Development, Incorporated to the Roman Catholic Bishop of Paraaque. It appears that the Bishop of Paraaque is a corporation sole organized and existing under the laws of the Republic of the Philippines, represented by Most Rev. Jesse R. Mercado, D.D.;that the Bishop of Paraaque is charged with the administration of the temporalities and the management of the estate and properties of the Roman Catholic within his territorial jurisdiction, diocese or bishopric, including but not limited to, hospitals, schools, colleges, seminaries for religious formation, orphanages, asylums, parsonages and cemeteries, which it has or may hereafter establish and all such properties which the corporation sole has acquired or may hereafter acquire outside of its jurisdiction; that said territorial jurisdiction or bishopric comprises the cities of Paraaque, Las Pias and Muntinlupa and its principal office is at Aguirre corner F. Cruz Streets, B.F. Homes, Paraaque City; that, on the other hand, United Housing Corporation, Philippine Tobacco Flue-Curing & Redrying Corporation, and Investment and Development, Incorporated are the registered owners of a parcel of land situated in Paraaque City covered by TCT No. 162754 (the "Property") issued by the Registry of Deeds of Paraaque City; that United Housing Corporation, Philippine Tobacco Flue-Curing & Redrying Corporation, and Investment and Development, Incorporated donated the real property consisting of Five Thousand Two Hundred Thirty-Two (5232) square meters, together with all improvements thereon, if any, to the Bishop of Paraaque to be used as the Parish Church, and that not more than 30% of the said gift shall be used by the Roman Catholic Bishop of Paraaque for administration purposes. In reply, please be informed that inasmuch as the donee is a religious 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 acknowledgement on said deed is subject to documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling DA-S-30-009-03 dated April 4, 2003) 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. caADIC Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service