BIR Ruling [DA-345-98]

July 27, 1998 BIR RULING [DA-345-98] Cruz-Feliciano Law Offices 3rd Floor Feliciano Building 7426 Santillan Street Makati City Attention: Atty . Myrna Cruz-Feliciano Gentlemen: This refers to your letter dated May 27, 1998 requesting exemption under Section 101(A)(3) of the Tax Code of 1997, on the donation made by Esperanza A. Gonzales of parcels of land situated in Sta. Cruz, Gapan, Nueva Ecija, covered by Transfer Certificate of Title Nos. NT-121417, NT-121418, NT-121419, NT-121420, NT-121421, NT-121422 and NT-121423 issued by the Register of Deeds of Nueva Ecija in favor of the Local Superior of the Franciscan Sisters of the Sacred Hearts, Inc. aisadc Documents submitted show that the Local Superior of the Franciscan Sisters of the Sacred Hearts, Inc. is a corporation sole duly registered with the Securities and Exchange Commission under SEC Registration No. 78038 for religious and charitable purposes; and that said real properties shall be used solely and exclusively as a sanctuary for its religious activities. In reply, please be informed that inasmuch as the donee is a corporation sole, the aforementioned 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 said gift shall be used by such donee for administration purposes. Moreover, the aforesaid Deed of 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 of P15.00 imposed 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, then this ruling shall be considered null and void. LLpr Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner Legal & Enforcement Group