BIR Ruling [DA-442-00]

December 28, 2000 BIR RULING [DA-442-00] 101 (A) (2) 28-98 Public Estates Authority 7th Floor Legaspi Towers 200 Paseo de Roxas, Manila Attention: Mr . Carlos P . Doble General Manager Gentlemen : This refers to your letter dated August 8, 2000 requesting for a ruling as to whether or not the Deed of Donation executed by the Public Estates Authority in favor of the Government of the Republic of the Philippines covering several parcels of land with an aggregate area of 251,141 square meters under Transfer Certificates of Title Nos. 141674 (Edsa Extension), 141676 (Central and part of seaside Boulevard), 141677 (Bay and part of seaside Boulevard), 41678 (Seaside Boulevard), 141656 (Redemptorist), 141657 (Redemptorist), 141660 (Redemptorist), 141663 (Redemptorist), and 128658 (Libertad), all located at Pasay city, is exempt from the payment of donor's tax and documentary stamp tax. HSCAIT Documentary evidence submitted disclosed that the Public Estates Authority is a government corporation created by virtue of P.D. 1084 with principal office address at 7th and 8th Floor, Legaspi Towers 200, Paseo de Roxas, Makati City; that the donor is the registered owner of several parcels of reclaimed land in the Central Business Park-1 Island A (CBPI-IA) located along reclamation area in Roxas Boulevard, Pasay City; that some of these parcels of reclaimed land in CBP-IA are allocated for roads and canals/channels under Boulevard 2000 Integrated Framework Plan; that there are four (4) parcels of reclaimed land allocated for roads such as the Central Boulevard, Bay Boulevard, Edsa Extension and Seaside Boulevard; that there are five (5) Certificates of Title covering the Redemptorist and Libertad Canals/Channels with a total aggregate area of 129,778 square meters; that the public use and public purpose for which aforesaid reclaimed lands/channels/canals shall be devoted necessitates their conveyance to the National Government for purposes of operation and maintenance; that PEA shall continuously be burdened with payment of real property tax due from these reclaimed lands and channels/canals unless and until their ownership shall be transferred to the National Government and that considering that near completion of the construction of the said roads, channels and canals, PEA deems it best to convey the same to the National Government and the latter hereby accepts the said conveyance. In reply, please be informed that inasmuch as the donee is the National Government, the aforementioned donation of roads and canals of the newly reclaimed land in Central Business Park-Island A in Pasay City is exempt from the payment of the donor's tax pursuant to Section 101 (A)(2) of the Tax Code of 1997. Moreover, the aforesaid Deed of Donation is not subject to 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 Code. (BIR Ruling No. DA-28-98 dated January 29, 1998) 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.) LILIAN B. HEFTI Deputy Commissioner Legal and Inspection Group