BIR Ruling [DA-493-98]

November 16, 1998 BIR RULING [DA-493-98] 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 exemption from the payment of donor's tax prescribed under Section 101 (A)(3) of the Tax Code of 1997 on the donation of two (2) parcels of land made by Rainbow Integrated Real Estate Corporation in favor of the Roman Catholic Archbishop of Manila. It appears that the donor is the registered owner of two (2) parcels of land covered by Transfer Certificates of Title Nos. 175963 and T-85858 issued by the Registry of Deeds for Caloocan City, Metro Manila District III; and that the subject properties are located at Barrio Deparo, Caloocan City with an aggregate area of Four Hundred Eighty (480) sq. m. and is presently occupied by San Lorenzo Chapel. cdti 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 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 prescribed under Section 196 of the Tax Code of 1997, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the same Code. (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. cd Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)