BIR Ruling [DA-380-00]

November 6, 2000 BIR RULING [DA-380-00] 101 (A) (3) 28-98 St. Scholastica's College 2560 Leon Guinto Street P.O. Box 3153, Manila Attention: Dr . Cecile B . Gutierrez Vice President for Academic Affairs Gentlemen : This refers to your undated letter requesting for an exemption from the payment of donor's tax prescribed under Section 101(A)(3) of the Tax Code of 1997. Documents submitted disclosed that in consideration and recognition of the educational efforts of St. Scholastica's College, Equitable Card Network, Inc. (ECNI) donated to the former computer equipment and related accessories, to wit. 36 units IBM PC 300 GL Intel Celeron 366MHz 128KB L2 Cache Memory 32MB 4.2 GB Hard Disk 1.44 MB 3.5" Diskette Drive Architectures PCI/ISA Graphics; S3 Trio3D AGP; 64-bit 2MB Video RAM IBM 104-Key Keyboard, Enhanced Mouse 10/100 LAN Card, Multimedia Kit Power Supply: 145 Watts; Y2K Ready IBM 14" SVGA Color Monitor Preloaded Software Windows 98 and Lotus Smartsuite 1 Unit NETFINITY 5000 Intel Pentium 550 MHz Level 2 Caches 512 KB 128 MB ECCRDIMM 9.1 GB Hard Disk Additional: 2 x 9. 1GB Hard Disks PCI Controller: Dual Channel w/Wide Ultra SCSI 10/100 Mbps Ethernet Adapter CD ROM Drive: 1.44MB Slots total: 3PCI & 2 PCI/ISA Bays: 5 hot-swap bays DSEaHT Ports: 1 Parallel, 2 USB ports Advanced Systems Management Adapter RAID Adapter 56K US Robotics Modem IBM Keyboard, Mouse Power Supply: 350 Watts IBM Black 14" SVGA Color Monitor Preloaded Software IBM Netfinity Manager, Server Guide Norton Anti-virus, Lotus Domino Application Additional Software: Windows NT MS Proxy In reply, please be informed that inasmuch as the donee is an educational institution, 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 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. DA-18-98 dated January 29, 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. aIcSED Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal and Inspection Group