BIR Ruling [DA-341-06]

May 26, 2006 BIR RULING [DA-341-06] 101 (A) (3); S-30-009-2003 Christian Missions in the Philippines, Inc . P.O. Box 490 Greenhills, Metro Manila Attention: Mr. David T. Harvey Administrator Gentlemen : This refers to your letter dated February 01, 2006 requesting exemption from the payment of donor's tax on the proposed donation of a parcel of land by Christian Missions in the Philippines, Inc. to the Presiding Elder of the Resources for Biblical Communications Apostolate, Inc. and the Presiding Elder of the Bible School of the Air Apostolate, Inc. It is represented that Christian Missions in the Philippines, Inc . is a non-stock, non-profit religious corporation duly registered with the Securities and Exchange under SEC Registration No. 19930 dated December 22, 1961; and that the purposes for which the corporation was formed are to engage in missionary activities in accordance with beliefs, doctrines and tenets of faith based on the Holy Scriptures as understood and practiced by churches or assemblies gathering in the name of the Lord Jesus Christ throughout the world; to engage in charitable, cultural, educational and other noble and virtuous activities for the comfort, convenience and benefit of all people in the Philippines; to represent and act for and on behalf of accredited missionaries in association with and sponsored by missionary corporation elsewhere; to produce and circulate without profit bible correspondence courses and other scriptural and educational data under the name of the Bible School of the Air, or some other suitable name or names, and to conduct and carry on radio or television programs under such name or names; to maintain and close church fellowship with churches or assemblies, chapels and religious corporations. In reply, please be informed that inasmuch as the donee is a religious corporation, the aforementioned 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 proposed gift shall be used by the donee for administration purposes. Moreover, the Deed of Donation is not subject to documentary stamp tax. However, the acknowledgement on said deed is subject to documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling No. S-30-009-2003 dated April 04, 2003) HCacDE 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