BIR Ruling [DA-452-05]

November 8, 2005 BIR RULING [DA-452-05] Atty. Hector Reuben D. Feliciano 1614 San Lazaro Street Sta. Cruz, Manila S i r : This refers to your letter dated July 4, 2003 requesting for an exemption from the payment of donor's tax prescribed under Section 101(A)(3) of the Tax Code of 1997. Documents show that on October 28, 2004, Margarita Mercado Manalo, executed a Deed of Donation over two (2) parcels of land in favor of Fr. Chiqui Manalo Memorial Foundation Inc. a non-stock and non-profit organization. The donated real properties are covered by Transfer Certificate of Titles No. 323270 and 323272, both situated in Brgy. San Jose, Antipolo, Rizal. In reply, please be informed that inasmuch as the donee is a charitable organization, 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 thirty percent (30%) of said gift shall be used for administration purposes. Section 185 of Regulations No. 26, otherwise known as the Revised Documentary Stamp Tax Regulations, implementing Title VII of the Tax Code, provides that conveyances of realties not in connection with a sale, to trustees or other persons without consideration are not taxable. Accordingly, the deed of donation is not subject to the documentary stamp tax prescribed under Section 196 of the Tax Code, as amended, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997 (BIR Ruling No. DA-050-01 dated March 22, 2001 and BIR Ruling No. DA-044-02 dated March 12, 2002). HATICc 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.) JAMES H. ROLDAN Assistant Commissioner Legal Service