BIR Ruling [DA-331-99]

May 31, 1999 BIR RULING [DA-331-99] Office of the Mayor Municipality of San Pedro Province of Laguna Attention: Felicisimo A. Vierneza Municipal Mayor Gentlemen : This refers to your letter dated March 23, 1999 requesting exemption from the donor's tax of the donation of twenty two (22) parcels of land by the National Housing Authority (NHA) to the Municipality of San Pedro, Laguna. It appears that pursuant to P.D. 757, the administration, development and disposition of all urban estates of the Department of Agrarian Reform has been transferred to the NHA; that as administrator, the NHA has authority to dispose of the following road lots, institutional lots and other public lots within the Laguna Settlement Project, viz: Lot. No. Designation Area 478 Market Site 11,119 530 Playground 10,389 537 Government Center 6,712 624 Park 13,138 625 Community Center 1,000 626 School Site 21,268 843 Road Lot 23,533 844 Road Lot 3,869 845 Road Lot 10,514 846 Road Lot 9,596 847 Road Lot 4,670 848 Road Lot 13,704 849 Road Lot 7,103 850 Road Lot 5,944 851 Road Lot 17,483 852 Road Lot 2,925 919 Road Lot 11,661 921 Road Lot 13,734 922 Road Lot 24,120 923 Road Lot 20,087 924 Road Lot 16,546 925 Road Lot 16,840 that the NHA has agreed to donate in favor of the Municipality of San Pedro, Laguna the aforesaid twenty two (22) parcels of land containing a total area of 265,973.00 sq. meters all situated in San Pedro, Laguna; and that the Municipal Council of San Pedro, Laguna has accepted the donation of said roads and public lots and spaces pursuant to Board Resolution No. 97-250 dated November 26, 1997. In reply, please be informed that the aforesaid donation made by the National Housing Authority in favor of the Municipality of San Pedro, Laguna is exempt from the donor's tax pursuant to Section 101(A)(2) of the Tax Code of 1997, which provides that gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government shall be exempt from donor's tax. (BIR Ruling DA-181-99 dated March 23, 1999) The Register of Deeds shall, however, annotate this condition at the back of Transfer Certificate of Title because failure to comply with the said condition shall be a ground for the revocation of the donation pursuant to Article 764 of the New Civil Code. cIADTC 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 & Enforcement Group)