BIR Ruling [DA-558-98]

December 7, 1998 BIR RULING [DA-558-98] Banco Filipino 101 Paseo de Roxas Makati City Attention: Ms . Luz B . Dacasin Assistant Vice President Real Estate Department Gentlemen : This refers to your letter dated November 11, 1998 requesting in effect for a ruling on the donation of two parcels of land by Banco Filipino Savings and Mortgage Bank in favor of Anthony C. Aguirre Foundation, Inc. It appears from the records that the donor, Banco Filipino Savings and Mortgage Bank is the registered owner of two (2) parcels of land situated at Block 4, Lot 4, M. Panlilio Street, BF Resort Village, Las Pias City covered by Transfer Certificates of Title Nos. T-58971 and T-46339 of the Registry of Deeds for Las Pias, Metro Manila while the donee, Anthony C. Aguirre Foundation, Inc., is a non-stock, non-profit corporation created for social welfare and cultural purposes and duly registered with the Securities and Exchange Commission with office and principal place of business at 9th Floor, BF Building, Paseo de Roxas corner Dela Rosa Street, Legaspi Village, Makati City. In reply, please be informed that pursuant to Section 101 (A)(3) of the Tax Code of 1997, gifts in favor of an educational and/or charitable, religious, cultural or social welfare corporation, institution, accredited nongovernment organization, trust or philanthropic organization or research institution or organization shall be exempt from donor's tax provided that not more than thirty percent (30%) of said gifts shall be used by such donee for administration purposes. Accordingly, the aforesaid donation is exempt from the payment of donor's tax pursuant to the aforecited provision subject to the condition that not more than 30% of said gift shall be used 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. cdlex Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)