BIR Ruling [DA-341-99]

June 8, 1999 BIR RULING [DA-341-99] Kingdom of God, Inc. Rizal Shrine Talisay, Dapitan City Zamboanga del Norte Attention: Mr . Filemon O . Reambonanza Founder, Kingdom of God Gentlemen : This refers to your letter dated March 29, 1999 requesting exemption from the payment of donor's tax on the donation of parcels of land by Kingdom of God, Inc. in favor of Minaog Academy. dctai It appears that Kingdom of God, Inc. is a non-stock, non-profit religious corporation duly registered with the Securities and Exchange Commission under SEC Registration No. AN092-02699 on July 30, 1992; that the donor is the registered owner of parcels of land consisting a total area of 371 sq. meters covered by TCT Nos. T-696121 and T-696122 issued by the Register of Deeds of Cavite; that it has a great desire to help and cooperative with the government to uplift and improve the living condition and social status of Filipino community; and that Minaog Academy is likewise a non-stock, non profit corporation. In reply, please be informed that inasmuch as the donee is a non-stock, non-profit educational institution, the aforementioned donation is exempt from the payment of the 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 gifts shall be used by the donee for administration purposes. The Register of Deeds shall, however, annotate this condition at the back of Transfer Certificates 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. Moreover, the aforesaid 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 DA-481-98 dated November 9, 1998) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation it will disclosed that the facts are different, 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 & Enforcement Group)