BIR Ruling [DA-548-99]

September 21, 1999 BIR RULING [DA-548-99] Padilla Law Office 7/F Padilla-De Los Reyes Bldg. 232 Juan Luna Street Binondo, Manila Attention: Atty . Sabino B . Padilla IV Gentlemen : This refers to your letter dated June 23, 1999 requesting for an exemption on behalf of your client, the Augustinian Sisters of Our Lady of Consolation, Inc., from the payment of donor's tax on the donation of a parcel of land with improvements thereon by the Commissary Provincial, Chief Priest or Head of Calced Carmelites, Inc. It appears that the Augustinian Sisters of Our Lady of Consolation, Inc. is a non-stock, non-profit corporation duly registered wit the Securities and Exchange Commission on October 8, 1987 under SEC Registration No. 1078; that the purpose for which the corporation was formed is to seek and worship God and to labor in the service of the people of God; that the Commissary Provincial, Chief Priest or Head of Calced Carmelites, Inc. a corporation sole, is the owner of a parcel of land with improvements thereon covered by Transfer Certificate of Title No. 197463 issued by the Registry of Deeds of Manila; that for and in consideration of the commitment of the Augustinian Sisters of Our Lady of Consolation, Inc. to continue using the property for religious apostolate work, for religious formation, education and charitable work, the Commissary Provincial, Chief Priest or Head of Calced Carmelites, Inc. voluntarily and freely gives, transfers and conveys by way of donation to the Augustinian Sisters of Our Lady of Consolation, Inc. all the right, title and interest therein. In reply, please be informed that inasmuch as the donee is a religious organization, the aforesaid donation is exempt form 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 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 of 1997. (BIR Ruling No. DA-481-98 dated November 9, 1998) 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, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)