Office of the Municipal Planning & Development Coordinator

November 23, 2007 BIR RULING [DA-601-07] Section 101 (A) (2) BIR Ruling No. DA-618-04 Office of the Municipal Planning & Development Coordinator Municipality of General Mariano Alvarez Cavite Attention: Arch. Angelito M. Nuqui Gentlemen : This refers to your letter dated September 14, 2007 indorsed to this Office by Regional Director Araceli L. Francisco of Revenue Region No. 9, San Pablo City requesting for exemption from payment of donor's tax on the transfer of real property by the National Housing Authority (NHA) in favor of the Municipal Government of General Mariano Alvarez, Cavite, which property is located at Block C-66-D and C67-D, Barangay Macario Dacon, General Mariano Alvarez, Cavite. As represented, the NHA is the registered owner of certain parcels of land with an aggregate area of 277,219 sq. m. consisting of open spaces, community facility, market, nursery, and cemetery sites all situated at General Mariano Alvarez Resettlement Project, Cavite. On April 6, 1990, a Deed of Donation and Acceptance was executed by NHA and the Municipal Government of General Mariano Alvarez, Cavite whereby the former conveyed by way of donation in favor of the latter the above-described property. In reply, please be informed that since the donee is a political subdivision of the Government, the aforementioned donation of a parcel of land is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997. Moreover, the aforesaid Deed of Donation is not subject to the documentary stamp tax under Section 196 of the Tax Code of 1997 but only to the documentary stamp tax of PhP15.00 on certification under Section 188 of the same Code. 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 as null and void. TCacIE Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service