BIR Ruling [DA-289-97]

August 27, 1997 BIR RULING [DA-289-97] Department of Agrarian Reform Elliptical Road, Diliman Quezon City Attention: Mr. Clifford C. Burkley Asst. Secretary Gentlemen: This refers to your letter dated August 27, 1997, in effect, requesting for a ruling as to whether donations to the Republic of the Philippines represented by the Department of Agrarian Reform (DAR), is exempt from donor's tax. It is represented that the Southern Luzon Coconut Oil Mills, Inc. (formerly ORCAR Corporation), a corporation organized and existing under Philippine laws, with office address at the 16th Floor, UCPB Bldg., Makati Ave., Makati City, donated four (4) parcels of agricultural land situated in the Municipalities of Mulanay and San Narciso, Province of Quezon, to the government, represented by the DAR in support of the Comprehensive Agrarian Reform Program. In reply, please be informed that pursuant to Section 94 (a) (2) and (b) (1) of the Tax Code, as amended, gifts made by a resident or nonresident not a citizen of the Philippines to the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government, shall be exempt from the donor's tax. Such being the case, since the donee is the National Government, donations to it are exempt from the donor's tax pursuant to the aforecited provision. (BIR Ruling No. 145-90) Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV OIC-Assistant Commissioner (Legal Service)