BIR Ruling [DA-340-99]

June 8, 1999 BIR RULING [DA-340-99] Couples for Christ Foundation, Inc. 349 Ortigas Avenue, Greenhills East Mandaluyong City Attention: Mr . Rouquel A . Ponte Executive Director Gentlemen : This refers to your letter dated February 19, 1999 requesting exemption under Section 94(a)(3) of the Tax Code, as amended, of the donation made by, the Spouses Ambrosio B. Padilla and Lourdes A. Padilla, of a parcel of land located in Sumulong Highway, Antipolo, Rizal containing an area of 1.12 hectares, more or less, forming part of the estate referred to as ALPADI Compound and covered by Transfer Certificate of Title (TCT) No. 346457 of the Register of Deeds of Rizal in favor of the Couples for Christ Foundation, Inc . by, virtue of a Deed of Conditional Donation executed on July 9, 1992. It is represented that Couples for Christ Foundation, Inc. is a duly registered non-stock, non-profit tax-exempt corporation established for charitable and religious purposes. In reply, please be informed that inasmuch as the donee is a religious institution, the aforementioned donation is exempt from the payment of the donor's tax pursuant to Section 196 of the Tax Code, 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 aforesaid Deed of Conditional Donation is not subject to the documentary stamp tax prescribed under Section 196 of the Tax Code, as amended, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling No. 108-94 dated May 30, 1994 and BIR Ruling No. DA-28-98 dated January 29, 1998) 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 or that the requirements imposed therein have not been complied with, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)