Philippine Academy of Sakya

August 10, 2007 BIR RULING [DA-450-07] 101 (A) (3) DA-481-98 Philippine Academy of Sakya 1463 G. Masangkay Street Sta. Cruz, Manila Attention: Sr. Maria Say Kian Gian Director Gentlemen : This refers to your letter dated October 21, 2005 requesting exemption from internal revenue taxes on donations made in favor of Philippine Academy of Sakya. It is represented that the Philippine Academy of Sakya is a non-stock, non-profit and service oriented religious educational institution; that it is a mission school which aims to impart knowledge, skills and values that will make its students productive, upright and better Filipino students; that in line with this objective, it is planning to convert its present parking lot (within the school compound) into a sports complex; that this facility will not only develop and nourish physical health of the students but also their social, mental and emotional well-being; that however, limited financial resources is one of its perennial problem; and that being a non-profit institution, it charges only very minimal fees and it relies mostly on regular donations from its benefactors for its operation and maintenance. In reply, please be informed that inasmuch as the donee is an educational institution, the aforesaid donations are 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 gifts shall be used by the donee for administration purposes. TAScID Moreover, the Deeds of Donation executed for the purpose are not subject to the documentary stamp tax. However, the notarial acknowledgment on said deeds is subject to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling No. DA-481-98 dated November 9, 1998) Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service