BIR Ruling [DA-278-06]

April 25, 2006 BIR RULING [DA-278-06] 101 (A) (3); DA-481-98 Sr. Mary Rosecia Justo, M.C. Regional Superior Missionaries of Charity, Inc. 1030 Tayuman Street Tondo, Manila M a d a m : This refers to your letter dated April 25, 2006 requesting exemption from the payment of taxes that may be imposed on the proposed donation made by Mr. Ramon L. Sin, a resident of 89 K-10th Street, Kamias, Quezon City to Missionaries of Charity, Inc., with principal office at Tayuman Street, Tondo, Manila, of a parcel of land more particularly described as follows: " Tax Declaration No. 05-014-0141 (2006) "A parcel of land, known as Lot No. 868-B, situated in Barangay Polo, Municipality of New Washington, Aklan. Bounded on the NE by the Provincial Road; on the SE by Lot 868-C; on the NW by Lot 867 and on the SW by Lots 10287, 10292 and 869; . . . containing an area of FIVE THOUSAND SEVEN HUNDRED SEVENTEEN (5,717) square meters more or less . . . : In reply, please be informed that inasmuch as the donee is a charitable 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 executed for the purpose is not subject to the documentary stamp tax. However, the notarial 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) acAESC Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service