BIR Ruling [DA-273-00]

June 29, 2000 BIR RULING [DA-273-00] 101 (A) (3) 481-98 DA-273-2000 The Clerics Regular of St. Paul (Barnabites), Inc. 360 Apitong St., Marikina Heights 1810 Marikina City Attention: Fr . Frank M . Papa, CRSP Treasurer Gentlemen : This refers to your letter dated August 31, 1999 requesting exemption from the payment of donor's tax on the donation of seven (7) parcels of land by the Clerics Regular of St. Paul (Barnabites), Inc. to Little Workers of the Sacred Heart, Inc. LibLex It appears that the Little Workers of the Sacred Heart, Inc. is a non-stock, non-profit religious corporation duly registered with the Securities and Exchange Commission on July 26, 1997 under SEC Registration No. A1996-5979; that the primary purpose for which the corporation was formed is to establish a house for the education, training and formation of religious and lay students to serve in various apostolic activities and ministries, among which are: giving religious instructions to the youth and to their families; performing missionary work for, and pastoral ministry to, the sick, the poor and the elderly at home, in hospitals and institutions; pastoral counseling of men and women in prison; and providing and maintaining hospice for the elderly; that the level of administrative expenses of the corporation on an annual basis shall not exceed thirty percent (30%) of its utilization during the taxable year; that in the event of dissolution, all assets of the corporation after paying its liabilities, shall be disposed of and turned over to one or more non-stock, non-profit corporations engaged in similar activities; that the Clerics Regular Of St. Paul (Barnabites), Inc. is likewise a non-stock, non-profit religious corporation duly registered with the Securities and Exchange Commission on August 2, 1991 under SEC Registration No. AN091-194044; that the primary purpose for which the corporation was formed is to administer the community's affairs, properties and temporalities; that the Clerics Regular of St. Paul (Barnabites), Inc. is the registered owner of seven (7) parcels of land situated at Bo. Parang (formerly Bayanbayanan), Marikina City covered by Transfer Certificate of Title Nos. 263200, 263201, 263202, 263203, 263204, 263205, 263206 issued by the Register of Deeds for Marikina City; that the Clerics Regular of St. Paul (Barnabites), Inc. ceded, transferred and conveyed by way of donation to the Little Workers of the Sacred Heart, Inc. the abovementioned parcels of land free and clear of all liens and encumbrances. 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 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)