Clerical Congregation of the Missionaries of Faith

May 16, 2008 BIR RULING [DA-298-08] 24; 101 (A); DA-074-2001 Clerical Congregation of the Missionaries of Faith Don Manuel Street, Vesco Subdivision San Pablo City Attention: Fr. Eufraine Z. Baylon, MF Provincial Superior Gentlemen : This refers to your letter dated August 10, 2007, requesting for exemption from the payment of donor's tax under Section 101 of the Tax Code of 1997. Documents submitted disclosed that Rita Abando and her children namely Joseph, Jorge and Marie Elizabeth all surnamed Abando are the absolute owners of a parcel of land, which is more particularly described as follows: "Lot 1-B, Psd-04-191849 "A parcel of land (Lot 1-B of the subd. plan. Psd-04-191849, being apportion of Lot 1, Pcs-04-021665, LRC Rec. No. 210), situated in the Barangay Sampaloc, Municipality of Pagsanjan, Province of Laguna, Island of Luzon, Bounded on the NW., along line 1-2 by Lot 5 (Road 4.00 m. wide) on the NE, along line 2-3 by Lot 3, both of PCS-04-021665; SE., along lines 3-4-5 by Road; and on the SW., along line 5-1 by Lot 1-A of the subd. plan. . . . Containing an area of ONE THOUSAND TWO HUNDRED FORTY (1,246) SQUARE METERS, more or less, covered by Transfer Certificate of Title No. T-244477." "Lot 2-B, Psd-04-191849 "A parcel of Land (Lot 2-B of the subdivision plan, Psd-04-191849, being a portion of Lot 2, Pcs-04-021665, LRC Rec. No. 210), situated in the Barangay Sampaloc, Municipality of Pagsanjan, Province of Laguna, Island of Luzon. Bounded on the SW., along line 1-2 by Lot 2-A of the subd. plan, on the NW., along lines 2-3-4 by Lot 1907, Cad. 69, Pagsanjan Cadastre; on the NE., along line 4-5 by Lot 3, and on the SE, along line 5-1 by Lot (Road 4.00 m. wide) both of Pcs-04-021665. . . . Containing an area of THREE HUNDRED SIXTY FOUR (364), SQUARE METERS, more or less. Covered by Transfer Certificate of Title No. T-244478." and that on July 30, 2007, a Deed of Donation was executed by and between the said owners and Clerical Congregation of the Missionaries of Faith represented by its MF. Provincial Superior, Rev. Father Eufraine Z. Baylon, transferring and conveying the above-described parcel of lands to the latter, a non-stock, non-profit religious organization. In reply, please be informed that inasmuch as the donee is a religious 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) Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service