BIR Ruling [DA-601-06]

October 10, 2006 BIR RULING [DA-601-06] Section 30 (H); DA-329-2005 Tent of the Lord's Presence Int'l. Ministries, Inc . 32 Agoncillo Street, Magno Subd., Sta. Monica Novaliches, Quezon City Attention: Rev. Marcelina P. Soriano Chairperson/Senior Pastor Gentlemen : This refers to your letter dated July 24, 2006 requesting for exemption from the payment of donor's tax relative to the donations in favor of the TENT OF THE LORD'S PRESENCE INTERNATIONAL MINISTRIES, INC. Documentary evidence submitted disclosed that the TENT OF THE LORD'S PRESENCE INTERNATIONAL MINISTRIES, INC. is a non-stock, non-profit religious organization registered with the Securities and Exchange Commission under SEC Reg. No. ANO93-02232 dated May 17, 1993; that the primary purposes for which the corporation is organized, are as follows, viz: 1. That the purpose of this religious corporation is for the administration of its affairs, properties and temporalities; 2. That the purpose of this religious corporation is to teach and propagate the Holy Bible, full gospel and Christian worship; and that you are consistently receiving some donations in cash or in kind from your church members working abroad and some token from your church affiliates overseas. In reply, please be informed that inasmuch as the donee is a religious organization, the aforementioned donations are 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 the 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 Tax Code. Finally, if the donor is a VAT registered person and the donation is an ordinary asset, the donation is subject to VAT pursuant to Section 4.106-7 of Revenue Regulations No. 16-2005, the same being considered a transaction deemed sale, but the input VAT attributed to the VAT portion of the cost of the donation should be deducted from the accumulated input VAT of the donor. If the donor is not a VAT registered person, the donation is exempt from VAT. HcSaAD This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service