BIR Ruling [DA-395-05]

September 22, 2005 BIR RULING [DA-395-05] 101 (A) (3); DA 254-00 Tacloban Bible Community 200 Paterno Street Tacloban City Attention: Rev. Paul Varberg Senior Pastor Gentlemen : This refers to your letter dated September 19, 2005 requesting for exemption from the payment of donor's tax over a parcel of land donated by Mr. Renato P. Querubin in favor of the Tacloban Bible Community, Inc. It is represented that Mr. Renato P. Querubin is the absolute and registered owner of a parcel of land located at Barangay Pawing, Palo, Leyte covered by OCT No. 39701 issued by the Registry of Deeds for Leyte and containing an area of 3,853 square meters; that on the other hand, the Tacloban Bible Community, Inc. is a non-stock, non-profit religious corporation duly registered with the Securities and Exchange Commission (SEC) under SEC Registration No. CNO93-000581; and that on August 22, 2005, a Deed of Donation was executed by Mr. Renato P. Querubin, as Donor, and the Tacloban Bible Community, Inc.,as Donee. In reply thereto, please be informed that inasmuch as the donee is a religious corporation, 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 by the donee for administration purposes. cEAaIS Moreover, the Deed of Donation 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. DA254-00 dated June 02, 2000 ) 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