BIR Ruling [DA-602-99]

October 11, 1999 BIR RULING [DA-602-99] The Paul Mission, Inc . c/o Cheong Dong Kyen Old Buncag, Puerto Princesa City Palawan Attention: Mr . Cheong Dong Kyen Gentlemen : This refers to the 1st Indorsement dated May 28, 1998, of Revenue District Officer Cezar L. Sandoval, Jr., Revenue District No. 36, Puerto Princesa City, requesting for a ruling as to whether or not the Deed of Donation executed by Mrs. Laudenia A. Bacuel of Barangay Sta. Lourdes, Puerto Princesa City, in favor of The Paul Mission, Inc. covering two (2) parcels of land, Lot No. 5092-C, Psd-04536-068548 and Lot No. 5092-D, Psd-045316-068548 located at Sta. Lourdes, Puerto-Princesa City, covered by Original Certificate of Title No. 1395 of the Registry of Deeds of Puerto Princesa City, is exempt from the payment of donor's tax and documentary stamp tax. Documentary evidence submitted disclosed that The Paul Mission, Inc. is a non-stock, non-profit religious corporation organized and registered with the Securities and Exchange Commission for the following purposes: 1. To preach the gospel of our Lord and Savior Jesus Christ to the people and to build them, train them in sound Christian faith based on the Holy Bible, and to equip them for the service in the church and in the community where they belong to; 2. To plant a God-centered, Bible-centered Evangelical churches all over the country; 3. To engage in or maintain educational institutions, missionary training center, publication for the members, charity work, medical clinics, and distribution of literature materials, and to carry out plans, programs, projects and activities which may be incidental and conducive to the attainment of the above objectives subject to and not contrary to the laws, rules, and regulations of the corporation; 4. To administer, manage, and control the properties of the corporation, such as acquire, purchase, hold, dispose, sell, lease, exchange, mortgage of real estate and personal or movable properties; to construct building, acquire, purchase, lease, mortgage buildings, houses and offices and to receive gifts and donations. and that the institution is governed by a Board of Trustees who receive no compensation and all its income is devoted to the maintenance and support of the corporation. In reply, please be informed that inasmuch as the donee is a religious corporation, the aforementioned donation is exempt from the payment of the donor's tax pursuant to Section 10(A)(3) of the Tax Code of 1997, subject to the condition that no more than 30% of the said gifts shall be used by the donee for administration purposes. The Register of Deeds shall, however, annotate this condition at the back of 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. prcd Moreover, the aforesaid Deed of Donation is subject to documentary stamp of P15.00 imposed under Section 188 of the same Code. (BIR Ruling No. DA-195-97 dated April 28, 1997 and 108-94 dated May 30, 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. Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)