BIR Ruling [DA-472-06]

August 4, 2006 BIR RULING [DA-472-06] 101 (A) (3); DA-009-2003 Congregation Of The Blessed Sacrament, Inc. No. 20 Sunnyside Drive, New Manila Attention: Atty. Romeo L. Luna Counsel/Representative Gentlemen : This refers to your letter dated July 20, 2006 requesting for exemption from the payment of donor's tax on the donation of a parcel of land by Josefina Villacorta to the Congregation of the Blessed Sacrament, Inc. It is represented that the Congregation of the Blessed Sacrament, Inc. is a non-stock, non-profit religious corporation duly registered with the Securities and Exchange Commission under SEC Registration No. 13069 dated January 11, 2000; that the main objective for which the corporation was formed is for the administration of its temporalities and the management of its properties and estates; that a parcel of land being donated is situated in Sta. Cruz, Manila covered by Transfer Certificate of Title No. 03100 consisting of 270.10 square meters more or less with buildings and improvements thereon and those located at 574-76 T. Mapua St. and 1012-16 Tambacan St., Sta. Cruz, Manila covered by Tax Declaration No. B-29-934; DHECac In reply, please be informed that inasmuch as the donee is a religious corporation, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 101(A)(3) of the Tax Code of 1997, as amended, subject to the condition that not more than 30% of the proposed gift shall be used by the donee for administration purposes. Moreover, the Deed of Donation is not subject to documentary stamp tax. However, the acknowledgement 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. 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