BIR Ruling [DA-399-06]

June 28, 2006 BIR RULING [DA-399-06] 101 (A) (3); S30-056-2001 Sister Mary John M. Amaranto, MhHFN Missionary Handmaids of the Holy Family of Nazareth (M.h.H.F.N.), Inc. Nazareth Convent, Tara Sipocot, Camarines Sur M a d a m : This refers to your letter dated May 2, 2006 requesting in effect for exemption relative to the donation of a parcel of land by Arecelo R. Rodriguez in favor of the Missionary Handmaids of the Holy Family of Nazareth (M.h.H.F.N.), Inc. It appears that the Missionary Handmaids of the Holy Family of Nazareth (M.h.H.F.N.), Inc. is a non-stock corporation organized and existing under the Philippine laws and is registered with the Securities and Exchange Commission (SEC) under SEC Registration No. I2000-00122 issued on April 12, 2000; that the purposes for which it was organized are: 1) to proclaim and spread the kingdom of God's love by its members' live witnessing presence and active participation labor in, wit and for the Church; 2) to engage in the formation, renewal and upkeep of moral and spiritual life of Christian families which shall be accomplished through catechism of children and adults; youth formation; integration of moral and spiritual values in the academic field, family counseling; conducting holy retreats and other pastoral ministries as determined by the current needs of the Church; that Arecelo R. Rodriguez, on the other hand, is the registered owner of a parcel of land located at Gaongan, Tara, Sipocot, Camarines Sur with an area of 9,000 sq.m. which is covered by Transfer Certificate of Title (TCT) No. T-43250 of Registry of Deeds for the Province of Camarines Sur; and that he intends to donate said parcel of land thru a Deed of donation to the Missionary Handmaids of the Holy Family of Nazareth (M.h.H.F.N.), Inc. In reply, please be informed that inasmuch as the donee is a religious organization, 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. Moreover, the Deed of Donation will not be subject to the 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 Tax Code. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered as null and void. DCATHS Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service