BIR Ruling [DA-352-98]

July 28, 1998 BIR RULING [DA-352-98] Mr. Michael S. Cruz 167 Kagitingan St., Muzon Malabon, Metro Manila S i r : This refers to your letter dated June 4, 1998 requesting for exemption from the payment of donor's tax prescribed under Section 101 (A)(3) of the Tax Code of 1997 on the donation of two (2) parcels of land made by your client, Messrs. Restituto B. Tiangco and Rufino B. Tiangco and Mesdames Victoria Tiangco Ong Oh, Librada Tiangco Cruz, Elisa Tiangco Cruz, Remedios Tiangco Banta and Patricia B. Tiangco in favor of the Roman Catholic Archbishop of Manila. aisadc It appears that the donors are the registered owner of a parcel of land covered by Transfer Certificate of Title No. 299279 issued by the Registry of Deeds for the Caloocan City; and that the subject property is located at North Bay Blvd., Navotas, Metro Manila with an aggregate area of Two Hundred Forty-Five (245) square meters. In reply, please be informed that inasmuch as the donee is a religious institution, the aforesaid 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 for administration purposes. Moreover, the 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. Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)