BIR Ruling [DA-293-04]

May 31, 2004 BIR RULING [DA-293-04] 101 (A) (3) DA-481-98 Bethel Christian Fellowship Phil., Inc. #2 Anak Bayan St., Brgy. Paltok San Francisco del Monte Quezon City Attention: Mr. Pascual "Marlon" A. Baybin President Gentlemen : This refers to your undated letter requesting exemption from the payment of taxes that may be imposed on the donation made by International Paul Mission Philippines, Inc., represented by its President, Jimmy B. Agabon, with office address at no. 81, F. Bautista St., Frisco, Quezon City to Bethel Christian Fellowship Phil., Inc. (Bethel) of a parcel of land more particularly described as follows: "Transfer Certificate of Title No. 193183 A parcel of land (Lot 5-B of the subd. Plan, Psd-13-017983, being a portion of Lot 5, Blk. 76, Psd-1650, L.R.C. Rec. No. 3563), situated in Brgy. Of Paltok, Quezon City, Metro Manila, Island of Luzon. Bounded on the SE., along line 1-2 by Lot 6; on the SW., along line 2-3 by Lot 4, both of Blk. 76, Psd-1650; on the NW., along lines 3-5 by Lot 5-A, with Perpetual Right of Way, of the subdn. Plan, and on the NE, along line 5-1 by Lot 8, Blk. 76, Psd-1650. . . containing an area of ONE HUNDRED FIFTY (150) SQUARE METERS, more or less. . ." In reply, please be informed that inasmuch as the donee is a religious corporation, 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 ) HTIEaS Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service