BIR Ruling [DA-296-00]

August 7, 2000 BIR RULING [DA-296-00] 101 (A) (3) DA-481-98 DA-296-2000 Superior of the Filipino Corporation of Claretian Fathers, Inc . 2 Mayumi St., UP Village Diliman, Quezon City Attention: Atty . Jose P . Garcia Gentlemen : This refers to your letter dated April 26, 2000 requesting for an exemption from the payment of donor's tax prescribed under Section 101(A)(3) of the Tax Code of 1997 on the donation of certain parcels of land with buildings and improvements thereon in favor of the Local Superior of the Priests of the Sacred Heart, Inc. It appears that the donor, Superior of the Filipino Corporation of Claretian Fathers, Inc., is a corporation sole duly registered with the Securities and Exchange Commission (SEC) under SEC Registration No. 12245; that it is the registered owner of six (6) parcels of contiguous and adjacent lots covered by Transfer Certificates of Title Nos. RT-6554 (372734), RT-6555 (366920), RT-6550 (327061), RT-6551 (327060) and RT-6552 (364991) all located at Tierra Verde Homes, Tandang Sora, Quezon City with a total area of 2,745 sq.m.; that the donee is a religious congregation professing, practising, propagating and teaching the Roman Catholic doctrine and faith; and that in its desire to assist the donee in its missionary, apostolic and charitable works in the Philippines, the donor transferred and conveyed the above-described parcels of land with all the improvements thereon in favor of the donee. ESITcH In reply, please be informed that inasmuch as the donee corporation is a religious organization, 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 for administration purposes. Moreover, the Deed of Donation is not subject to documentary stamp tax prescribed under Section 196 of the Tax Code of 1997, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the same Code. 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 Deputy Commissioner Legal and Inspection Group