BIR Ruling [DA-276-96]

July 25, 1996 BIR RULING [DA-276-96] The Roman Catholic Archbishop of Manila 121 Arzobispo Street, Intramuros P.O. Box 132, Manila Attention: Msgr . Domingo A . Cirilos, Jr . Gentlemen : This refers to your letter dated April 17, 1995 requesting exemption under Section 94(a)(3) of the Tax Code, as amended, of the donation made by Dr. Romulo B. Sarile (Donor), of a parcel of land located at Barrios of Tinejeros and Tugatog, Malabon, Metro-Manila containing an area of 240 square meters and covered by a Transfer Certificate of Title No. B-15562-A issued by the Register of Deeds of Manila, in favor of the Roman Catholic Archbishop of Manila (Donee). It is represented that the donee is a corporation sole duly organized and existing under the laws of the Philippines; that said Deed of Donation involving a parcel of land was executed on April 20, 1995. In reply, please be informed that inasmuch as the donee is a religious institution, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 94(a)(3) of the Tax Code, as amended, subject to the condition that not more than 30% of said gift shall be used by the donee for administration purposes. Moreover, the aforesaid Deed of Donation is not subject to the documentary stamp tax prescribed under Section 196 of the Tax Code, as amended, but only to the documentary stamp tax of P10.00 imposed under Section 188 of the same Code, as amended by R.A. No. 7660. (BIR Ruling No. 452-93 dated November 19, 1993). aisadc Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Rev. Executive Assistant Legal Service