Sps. Hipolito and Paz Olaes

June 24, 2008 BIR RULING [DA-384-08] Section 101 (A) (2); BIR Ruling No. DA-618-04 Sps. Hipolito and Paz Olaes Sunrise Village Pardo, Cebu City Gentlemen : This refers to your letter dated January 29, 2008 requesting for tax exemption on your donation of a real property in favor of the City Government of Cebu. Documents show that on July 3, 1995, you donated a portion of Lot No. 4301-D located at Sunrise Village Pardo, Cebu City covered by Transfer Certificate of Title No. 62104 with an area of 139 square meters in favor of the City Government of Cebu for the road-right-of-way. On April 24, 1995, the donation was duly accepted by the City Mayor and approved by the City Council through Resolution No. 2546. In reply, please be informed that since the donee is a political subdivision of the Government, the aforementioned donation of the above-described parcel of land is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997, as amended. Moreover, the aforesaid Deed of Donation is not subject to the documentary stamp tax under Section 196 of the Tax Code of 1997, as amended, but only to the documentary stamp tax of PhP15.00 on certification under Section 188 of the same Code. 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 as null and void. cDHAES Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service