Mr. Manuel Trinidad

April 27, 2007 BIR RULING [DA-271-07] 101 (A) (3) DA-677-2006 Mr. Manuel Trinidad No. 11, Pag-Asa Imus, Cavite S i r : This refers to your letter dated March 01, 2007 requesting exemption from the payment of donor's tax on the donation of a parcel of land owned by Mr. Porfirio Trinidad to Teleufem Foundation, Inc. It appears that Mr. Porfirio Trinidad is the registered owner of a parcel of land located in Imus, Cavite, covered by Transfer Certificates of Title No. T-48948 issued by the Register of Deeds of Cavite consisting of 2,351 sq.m. more or less; that Teleufem Foundation, Inc. is a non-stock, non-profit corporation duly registered with the Securities and Exchange Commission under SEC Registration No. CN200314867 dated July 04, 2003; that its purpose or purposes for which the corporation was formed is to develop the values of close family relationship, to assist deserving members in the pursuit of education, to assist members to develop entrepreneurial skills and help in the financing of worthwhile projects and to pursue projects that will enhance community development; and that the donated parcel of land and the building thereon will be used by the said Foundation as its principal place of office for the purpose of pursuing its objectives. In reply, please be informed that inasmuch as the donee is a non-stock, non-profit corporation, organized for social welfare purposes, the aforesaid donation is exempt from the payment of donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, as amended, subject to the condition that not more than 30% of said gift shall be used by the donee for administration purposes. The Register of Deeds shall, however, annotate this condition at the back of the 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. HSTaEC Moreover, the Deed of Donation is not subject 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, as amended. 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, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service