BIR Ruling [DA-481-98]

November 9, 1998 BIR RULING [DA-481-98] The Roman Catholic Archbishop of Manila 121 Arzobispo St. Intramuros Manila Attention: Rev . Fr . Cesar V . Buhat Dept . Head-Properties Administration Department Gentlemen : This refers to your letter dated January 31, 1998 requesting for an exemption from the payment of donor's tax prescribed under Section 101 (A) (3) of the Tax Code of 1997 on the donation of a parcel of land with improvements thereon by Msgr. Charles Tchou in favor of Roman Catholic Archbishop of Manila. It appears that the donor is the registered owner of a certain parcel of land with a house constructed thereon and specifically described as Unit No. 10 located at 188 Alfonso XIII corner Artiaga Sts., San Juan Metro Manila; that said parcel of land has an area of One Hundred Sixty Eight (168) sq. m.; and that it is covered by Transfer Certificate of Title No. T-8701-R issued by the Registry of Deeds of San Juan, Metro Manila and is presently occupied by the Missionary Sisters of Sacred Heart of Jesus. In reply, please be informed that inasmuch as the donee is a religious institution, the aforesaid donation is exempt from the payment of donor's tax pursuant to Section 101 (A) (3) of 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 executed for the purpose 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 1997. (BIR Ruling No. 011-94 dated January 10, 1994) 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.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)