BIR Ruling [DA-308-06]

May 10, 2006 BIR RULING [DA-308-06] 101 (A) (2); S-30-017-2002 Office of the Governor Borongan, Eastern Samar Attention: Mr. Henry M. Afable Provincial Planning and Development Coordinator Gentlemen : This refers to your letter dated May 09, 2006 requesting exemption from the payment of donor's tax on the donation of one (1) unit of Toyota Hi-Lux pick up (1999 model) by the United Nations Children's Fund (UNICEF) to the Provincial Government of Eastern Samar, described as follows: Make : Toyota Hilux 4 x 4 Double Cab Pick Up Model : 1999 Color : White Engine No. : 3L-4908009 Chassis No. : LN-166-0040987 Plate No. : OEV-21814 In reply, please be informed that inasmuch as the donee is a political subdivision of the government, the aforesaid donation is exempt from the payment of donor's tax pursuant to Section 101(A)(2) of the Tax Code of 1997, as amended, 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 is not subject to documentary stamp tax. However, the acknowledgment on said deed is subject to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997, as amended. (BIR Ruling No. DA-S30-017-2002 dated July 23, 2002) 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.) JAMES H. ROLDAN Assistant Commissioner Legal Service