BIR Ruling [DA-339-99]

June 7, 1999 BIR RULING [DA-339-99] Agdao Landless Resident's Association, Inc. Agdao, Davao City Attention: Mr . Armando Javonillo President Gentlemen : This refers to your letter dated April 30, 1999 requesting in effect for exemption from donor's and documentary stamp taxes on the proposed donation of several parcels of land by Dakudao & Sons, Inc. in favor of the Agdao Landless Residents' Association, Inc. prescribed Section 101(A)(3) of the Tax Code of 1997. LexLib Documents submitted disclosed that Dakudao & Sons, Inc. is the registered and absolute owner of several parcels of land situated at Agdao, Davao City covered by Transfer Certificates of Title Nos. T-41344 T-41375, T-297818 297820, T-297810 T-297817, T-62124 and T-62126; and that Dakudao & Sons, Inc. intends to donate the aforementioned parcels of land in favor of the Agdao Landless Residents' Association, Inc. (formerly Salandanan Et Al Landless Association, Inc.), a non-stock corporation duly registered with the Securities and Exchange Commission under SEC Registration Certificate No. 55994. In reply, please be informed that inasmuch as the donee is a non-stock corporation created for social welfare purposes, the proposed 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 the said gift shall be used by the donee for purposes. Moreover, the proposed 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 prescribed under Section 188 of the same Code. (BIR Ruling No. 011-94 dated January 10, 1994) 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, and/or any of the requirements imposed in this letter are not complied with, then this ruling shall be considered null and void. cdll Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)