BIR Ruling [DA-454-06]

July 25, 2006 BIR RULING [DA-454-06] 101 (A) (3); 226-2001 Hellenic Orthodox Foundation, Inc. Makati Central Post Office Box 510, Makati City Attention: Mr. Milton A. Adamson President Gentlemen : This refers to your letters dated November 26, 2004 and May 03, 2006 requesting exemption from the payment of donor's tax on the donation of a parcel of land with improvements thereon, by Hellenic Orthodox Foundation, Inc. to Exarchate of the Ecumenical Patriarchate in the Philippines, Inc. It appears that Hellenic Orthodox Foundation, Inc. is a non-stock, non-profit religious corporation duly registered with the Securities and Exchange Commission under SEC Registration No. 164344 dated May 17, 1990; that its purpose is for the administration of its affairs, properties and temporalities and to establish and build the church known as "Annunciation of Theotokos"; that it shall donate in favor of Exarchate of the Ecumenical Patriarchate in the Philippines, Inc. the said parcel of land together with improvements thereon under TCT No. 95327 issued by the Register of Deeds of Paraaque City consisting of 808 sq. m. more or less; that Exarchate of the Ecumenical Patriarchate in the Philippines, Inc. is likewise a non-stock, non-profit religious corporation duly registered with the Securities and Exchange Commission under SEC Registration No. A198704552 dated April 1, 1997; that its purpose is likewise for the administration of its affairs, properties and temporalities; and that it is duly accredited With the Philippine Council for NGO Certification (PCNC) dated March 17, 2006 and was granted a one (1) year certification for donee institution status. In reply, please be informed that inasmuch as the donee is a non-stock, non-profit 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. Moreover, the Deed of Donation 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, as amended. (BIR Ruling No. DA-226-2001 dated October 30, 2001) 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. TDcAaH Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service