BIR Ruling [DA-407-03]

November 11, 2003 BIR RULING [DA-407-03] 101 (A) (3) 112-2003 Colegio de San Jose Malolos Veritas Technical School, Inc . Bo. Dakila, Malolos, Bulacan Attention: Mr . Marco D . Elequin School Administrator Gentlemen : This refers to your letter dated September 16, 2003 requesting exemption from the payment of donor's tax on the donation of a parcel of land together with the improvements thereon made by the Philippine Radio Educational and Information Center, Inc . in favor of the Colegio de San Jose Malolos Veritas Technical School, Inc . (formerly Veritas Technical School, Inc . ) It appears that Philippine Radio Educational and Information Center, Inc . is a non-stock corporation duly organized and existing under and by virtue of the laws of the Republic of the Philippines with principal office address at Buick Street, Fairview, Quezon City; that it is the registered owner of a parcel of land together with the improvements thereon situated in Dakila, Malolos, Bulacan, covered by Transfer Certificate of Title No. RT-57027(T-238585) issued by the Registry of Deeds for the province of Bulacan consisting of Two Hundred Sixty Eight Thousand Eight Hundred Seventy Eight square meters and Forty four decimeters (268,878.44); that Colegio de San Jose Malolos Veritas Technical School, Inc . is a non-stock, non-profit educational institution duly registered with the Securities and Exchange Commission on December 14, 1993 under SEC Registration No. AN093005177 with principal office address at Bo. Dakila, Malolos, Bulacan; and that the aforesaid donation shall be used for educational purposes. In reply, please be informed that inasmuch as the donee is a non-stock, non-profit educational institution, 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 was 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-112-2003 dated April 4, 2003) 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. DCIAST Very truly yours, (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service