BIR Ruling [DA-454-04]

August 27, 2004 BIR RULING [DA-454-04] 101 (A) (3) DA-481-98 The Roman Catholic Bishop of Paraaque #34 Aguirre Ave. cor. F. Cruz Street BF Homes, Paraaque City Attention: Most Rev . Jesse E . Mercado, D . D . Bishop of Paraaque Gentlemen : This refers to your letter dated June 23, 2004 requesting exemption from the payment of taxes that may be imposed on the donation made by Motion Picture Laboratories (Phils.), Inc., represented by its President, Mrs. Delza V. Lazatin, with office address at Villonco Cor. MPL Road, Sucat, Muntinlupa City to Roman Catholic Bishop of Paraaque, Inc., of a parcel of land more particularly described as follows: "Transfer Certificate of Title No. 13023 A PARCEL OF LAND (Lot 8-A-1 of the subdivision plan Psd-00-063304, being a portion of Lot 8-A, (LRC) Psd-237357, LRC Record No. 10766), situated in Brgy. Sucat, Muntinlupa City, Province of (Rizal) Metro Manila, Island of Luzon. Bounded on the West along line 1-2 by Lot 8-B (LRC) Psd-237357; on the North and East along line 2-3-4-5-6-7-8-9 by Road Lot 16 (LRC) Psd-46683; and on the South along line 9-1 by Lot 8-a-2 of the subdivision plan. Beginning at a point marked "1" on plan, being S. 21 deg. 45'W., 9334.27 m. from BLLM #1, Taguig, Rizal; thence N. 01 deg. 24'W., 62.33 m to point 2; N. 79 deg. 15'E., 21.74 m. to point 3; N. 81 deg. 20'E., 19.52 m. to point 4; S. 89 deg. 34'E., 3.95 m. to point 7; S. 02 deg. 55'W., 48.86 m. to the point of beginning, containing (3,283) SQ. METERS, more or less. . . " In reply, please be informed that inasmuch as the donee is a religious corporation, 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. HTScEI Moreover, the Deed of Donation executed for the purpose is not subject to the documentary stamp tax. However, the notarial 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. DA-481-98 dated November 9, 1998 ) Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service