BIR Ruling [DA-374-99]

June 28, 1999 BIR RULING [DA-374-99] Secular Order of Discalced Carmelites (Manila Chapter), Inc. # 4 Fifth Street New Manila, Quezon City Attention: Sr . Julia A . Calinawan, OCDS President Gentlemen : This refers to your letter dated May 3, 1999 requesting for exemption from the payment of donor's tax on the donation of a parcel of land with improvements thereon by Lourdes Z. Limlengco, OCDS, in favor of the Secular Order of Discalced Carmelites (Manila Chapter), Inc. It appears that the donor is the registered owner of a certain parcel of land with all improvements thereon, situated at Bangeua, Tuba, Province of Benguet, consisting of 12,000 sq. meters, more or less, covered by Original Certificate of Title No. P-3590 issued by the Registry of Deeds of Benguet; that the Secular Order of Discalced Carmelites (Manila Chapter), Inc. is a non-stock non-profit religious corporation; and that the purpose of the donation is for the establishment of a Prayer House. 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 by the donee for administration purposes. The Register of Deeds shall, however, annotate this condition at the back of the Original Certificate 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 Deed of Donation executed for the purpose 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 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. cdll Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)