De Guzman Celis & Dionisio Law Offices

September 28, 2007 BIR RULING [DA-516-07] 101 (A) (3) DA-677-2006 De Guzman Celis & Dionisio Law Offices Suite C, 15th Floor, Strata 2000 Building F. Ortigas Jr. Road, Ortigas Center Pasig City Attention: Atty. Amalia E. Dionisio Gentlemen : This refers to your letter dated August 8, 2007 requesting on behalf of your client, Assisi Development Foundation, Inc ., for exemption from the payment of donor's tax on the donation of a parcel of land to Bahay Maria, Inc . EHSAaD It is represented that Bahay Maria, Inc . is a non-stock, non-profit religious/charitable corporation duly registered with the Securities and Exchange Commission under SEC Registration No. 158513 dated May 21, 2001; that the main objective for which the corporation was formed is to provide spiritual and human formation to lay and religious leaders who desire to incarnate Jesus Christ more in their lives by entering more deeply into the person and qualities of the Blessed Mother; and that a parcel of land being donated is situated in Amapola Street, Bel-Air Village, Makati City covered by Transfer Certificate of Title No. 155161 consisting of 561 square meters more or less with improvements thereon issued by the Registry of Deeds of Makati City and covered by Tax Declaration No. TD-E-002-00831. 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. The Register of Deeds shall, however, annotate this condition at the back of the Transfer Certificate of Title because failure to comply with the said condition shall be a ground for the revocation of the donation pursuant to Article 764 of the New Civil Code. cASTED 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. DaTICE Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service