BIR Ruling [DA-355-05]

August 22, 2005 BIR RULING [DA-355-05] S-30-088-2001 S-101 (A) (3) dated Nov. 8, 2001 Casa Hacienda De Tanza, Inc. 98 Biwas, Tanza, Cavite Attention: Atty. Rosario J. Valencia President & Chief Executive Officer Gentlemen : This refers to your letter dated July 4, 2005, requesting Certificate of Tax Exemption of CASA HACIENDA DE TANZA (Casa Hacienda, for short) being a non-stock, non-profit corporation pursuant to Section 30 (E) of the Tax Code of 1997. It is represented that CASA HACIENDA is a duly registered non-stock, non-profit corporation registered with the Securities and Exchange Commission (SEC) on February 17, 2005, that its primary purpose is to establish, operate, maintain and carry on the business of utility services and/or otherwise engaging in other kinds of services which are incidental to or in connection therewith; that it is likewise registered with the Bureau of Internal Revenue (BIR) on June 10, 2005 bearing Certificate of Registration No. OCN IRC0000199759; with the line of business as Museum Activities and Preservation of Historical Sites; that in a Municipal Resolution No. 14-2005 of the Municipality of Tanza, Cavite, dated May 4, 2005, the Casa Hacienda had been declared as Historical Landmark in Tanza, Cavite; that, on May 18, 2005, a Deed of Donation over a parcel of land together with its ancestral house and improvements existing thereon consisting of 1,738 sq.m. situated at Barrio Biwas, Tanza, Cavite was donated by Spouses Leodegario G. Pascual and Carmen V. Pascual out of their sincere desire to ensure the perpetuation of the historical aspects and values of the site which was declared and recognized as a Historical Landmark and for the preservation and legacy for posterity, in favor of Casa Hacienda; and that you now request for the exemption of the said donation from donor's tax. In reply, please be informed that inasmuch as the donee is a non-stock, non-profit institution, the aforesaid 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 gift shall be used by the donee for administration purposes. EcATDH Moreover, the Deed of Donation is not subject to documentary stamp tax (DST). However, the acknowledgment on said deed is subject to the DST of P15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling No. 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 be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service