BIR Ruling [DA-429-03]

November 28, 2003 BIR RULING [DA-429-03] 101 (A) (3) DA 254-00 Divine Savior Parish of the Third Millenium Archer Street, North Fairview Quezon City Attention: Rev. Fr. Victor Emmanuel I. Clemen Parish Priest Gentlemen : This refers to your letter dated November 6, 2003 requesting for exemption from the payment of donor's tax over a parcel of land donated by B.C. Regalado & Co., Inc. in favor of the Roman Catholic Archbishop of Manila. It is represented that B.C. Regalado & Co., Inc. (Donor), is a domestic corporation duly organized and existing under the laws of the Philippines with principal office address at 370 Columbia Street, Greenhills East, Mandaluyong City; that on the other hand, the Roman Catholic Archbishop of Manila (Donee) is a corporation sole duly organized and existing under the laws of the Philippines with principal office address at No. 121 Arzobispo Street, Intramuros, Manila; that the Donor is the owner of a parcel of land with total land area of 4,000 square meters covered by TCT No. RT-(230567)-78112 issued by the Registry of Deeds for Quezon City; and that on October 29, 2002, a Deed of Donation was executed by the parties with the condition that the donated property shall be strictly used by the Donee to construct a Catholic church building. 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. EaHDcS 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.) MILAGROS V. REGALADO Assistant Commissioner Legal Service