BIR Ruling [DA-331-05]

July 27, 2005 BIR RULING [DA-331-05] 101 (A) (3); DA 254-00 Sisters of the Holy Face of Jesus (HFJ) Holy Face Center and Convent 1111 R. Hidalgo Street Quiapo, Manila Attention: Sr. Ma. Guadalupe S. David, HFJ Vicar General and 1st Councilor Gentlemen : This refers to your letter dated July 21, 2005 requesting for exemption from the payment of donor's tax over a parcel of land donated by the Daughters of Mary, Mother of the Church, Inc. in favor of the Sisters of the Holy Face of Jesus (HFJ), Inc. It is represented that the Daughters of Mary, Mother of the Church, Inc. is the owner of a parcel of land together with the improvements thereon located at 1111 R. Hidalgo Street, Quiapo, Manila covered by TCT No. 137354 issued by the Registry of Deeds for Manila and containing an area of 939.20 square meters; that on the other hand, the Sisters of the Holy Face of Jesus (HFJ), Inc. is a corporation sole duly organized and existing under the laws of the Philippines and registered with the Securities and Exchange Commission (SEC) under SEC Registration No. A200009796; and that on July 14, 2005, a Deed of Donation was executed by the Daughters of Mary, Mother of the Church, Inc., as Donor, and the Sisters of the Holy Face of Jesus (HFJ), Inc., as Donee. In reply-thereto, please be informed that inasmuch as the donee is a religious 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 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. ( BIR Ruling No. DA254-00 dated June 02, 2000 ) 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. TAaHIE Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service