BIR Ruling [DA-395-03]

November 4, 2003 BIR RULING [DA-395-03] 101 (A) (3) 044-2002 MCV Realty And Development Corporation 2/F 888 Banawe Street, Quezon City Attention: Mr. Michael T. Velasco President Gentlemen : This refers to your letter dated September 25, 2003 requesting exemption from the payment of donor's tax on the donation of a parcel of land owned by MCV Realty & Development Corporation to Christian Faith, Hope, Love, Prayer Institute and Seminary, Inc . It appears that MCV Realty & Development Corporation is corporation duly organized and existing under and by virtue of the laws of the Republic of the Philippines represented by its President, Michael T. Velasco, Filipino and resident of No. 82 Don Jose St., Sta. Mesa Heights, Quezon City; that it is the registered owner of a parcel of land situated at Quezon City covered by Transfer Certificate of Title No. 364756 consisting of Eight Hundred (800) square meters, more or less, issued by the Register of Deeds of Quezon City; that Christian Faith, Hope, Love, Prayer Institute and Seminary, Inc. is a non-stock, non-profit religious corporation duly registered with the Securities and Exchange Commission on December 21, 1998, under SEC Registration No. 158722 with principal office address at No. 64 Apo Street, Quezon City; and that the aforesaid donation shall be for the exclusive use of the prayer institute seminary for its purpose and cannot be sold or transferred or directed for other usage. AECDHS In reply, please be informed that inasmuch as the donee is a religious non-stock, non-profit corporation, 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. Moreover, the Deed of Donation that will be 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-044-2002 dated March 12, 2002) 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.) MILAGROS V. REGALADO Assistant Commissioner Legal Service