BIR Ruling [DA-420-99]

July 20, 1999 BIR RULING [DA-420-99] Christian Life Community of the Philippines, Inc. CLCP National Secretariat C/o Mary the Queen Parish Madison Street, Greenhills West San Juan, Metro Manila Attention: Mr. Vitaliano N. Nanagas II President Gentlemen : This refers to your letter dated July 1, 1998 requesting for a ruling as to whether or not the Deed of Donation executed by Mrs. Lourdes B. Gonzales in favor of Christian Life Community of the Philippines, Inc. covering a parcel of land covered by Transfer Certificate of Title No. T-123360 of the Registry of Deeds for the Province of Cavite at Trece Martirez City, is exempt from the payment of donor's tax and documentary stamp tax. Documentary evidence submitted disclosed that Christian Life Community of the Philippines, Inc. is a non-stock, non-profit religious and social welfare institution organized and registered with the Securities and Exchange Commission for the following purposes, among others: 1. To promote, foster, encourage and sponsor and engage in formation activities for moral regeneration; 2. To form small Christian communities for services to the church and country; 3. To train its members for Christian leadership in the community; 4. To own, operate, and maintain a Christian Formation Center; 5. To render benevolent aid and comfort to its members as may be provided in the by-laws; and 6. To do each and every thing necessary, suitable or proper for the accomplishment of any of the purposes or the attainment of any one or more of the objects herein enumerated, or which shall at any time appear conducive to or expedient for the protection or benefit of the community. that the institution: is governed by a Board of Trustees who receive no compensation and all its income is devoted to the accomplishment and promotion of the purposes enumerated in the Articles of Incorporation; that one of its members, Mrs. Lourdes B. Gonzales, would like to donate a parcel of land consisting of 1,000 sq. meters, more or less, located at Trece Martirez City, for the use of the said institution in the establishment and operation of its Christian Formation Center for the religious and moral formation of its members is well as other members of society; and that the donated property will be used exclusively for the aforementioned purpose, hence no portion thereof will be used for administration purposes. In reply, please be informed that inasmuch as the donee is a religious and social welfare institution, the aforementioned donation is exempt from the payment of the 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 the said gifts shall be used by the donee for administration purposes. The Register of Deeds shall, however, annotate this condition at the back of title Transfer Certificate of Title. aHSAIT Moreover, the aforesaid Deed of Donation is Subject to documentary stamp tax of P15.00 imposed under Section 188 of the same Code. (BIR Ruling No. DA-195-97 dated April 28, 1997 and 108-94 dated May 30, 1994) 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, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)