BIR Ruling [DA-438-00]

December 26, 2000 BIR RULING [DA-438-00] 101 (A) (3) 481-98 De Jesus Linatoc Mendoza & Associates 2nd Floor, Gozos Building 6 Felix Manalo Street Lipa City Attention: Atty . Andrew C . Linatoc Legal Counsel Gentlemen : This refers to your letter dated September 14, 2000 stating that the De La Salle Brothers, Inc. donated four (4) parcels of land (school campus and site) located in Lipa City and covered by Transfer Certificates of Title Nos. 70131, 70132, 70133 and 70134 in favor of the De La Salle Lipa, Inc.; and that these properties which are declared and registered as tax exempt are' actually and directly being used for educational purposes. Furthermore, it appears from the documents submitted that the donor, De La Salle Brothers, Inc. is an educational institution and a non-stock, non-profit corporation duly organized and existing under Philippine laws, with principal office at Central House, La Salle St., Greenhills, Mandaluyong City; that the donee, De La Salle Lipa, Inc. is also an educational institution and a non-stock, non-profit corporation duly organized and existing under Philippine laws with main office at Mataas na Lupa, Lipa City; that the donor, is the absolute and registered owner of the aforementioned properties which the donee have been occupying and using actually, directly and exclusively as the latter's school site and campus or for educational purposes since its establishment in 1965; and that on August 21, 2000, a Deed of Donation of Real Properties was executed whereby the De La Salle Brothers, Inc. donated the said properties to the De La Salle Lipa, Inc. Based on the foregoing, you now request for exemption from the donor's tax on the donation made by the De La Salle Brothers, Inc. in favor of the De La Salle Lipa, Inc. 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 of Real Properties 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. 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. cAEaSC Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal and Inspection Group