BIR Ruling [DA-299-98]

July 3, 1998 BIR RULING [DA-299-98] Padilla Law Office 7/F Padilla-De Los Reyes Building 232 Juan Luna Street, Binondo Manila Attention: Atty. Sabino Padilla, Jr. Gentlemen : This refers to your letter dated April 27, 1998 requesting for exemption from donor's tax on the donation made by Sister Damasita Camillo, R.V.M. of a portion of three 3 hectares of land located at Barrio Labuagan, Kibawi, Bukidnon covered by Original Certificate of Title No. P-304 of the Register of Deeds of Bukidnon, in favor of your client, Cathedral School of Technology, a non-stock, non-profit educational corporation organized and existing under the laws of the Philippines, in order to assist the donee in its non-stock, non-profit educational, charitable and religious activities. EITcaD In reply, please be informed that inasmuch as the donee is a non-stock, non-profit educational corporation, the aforementioned 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 aforesaid 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. (BIR Ruling No. 011-94 dated January 10, 1994) ESHAIC 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, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)