BIR Ruling [DA-612-99]

November 3, 1999 BIR RULING [DA-612-99] SGV & Co. 6760 Ayala Avenue 1226 Makati City Attention: E . C . Alcantara Tax Division Gentlemen : This refers to your letter dated August 25, 1999 requesting for exemption from the payment of donor's tax on the donation of a parcel of land by Maryknoll Sisters Parish Work, Inc. in favor of the Miriam College Foundation, Inc. It appears that the Maryknoll Sisters Parish Work, Inc. is a non-stock, non-profit corporation duly registered with the Securities and Exchange Commission on February 10, 1975 under SEC Registration No. 60083; that it is organized principally for the purpose of engaging in religious mission work; that the Miriam College Foundation, Inc. is likewise a non-stock, non-profit educational foundation duly registered with the Securities and Exchange Commission on May 24, 1988 under SEC Registration No. 985; that the main objective of the foundation is to manage, maintain and operate a school for the education and training of Filipinos and other youth for a responsible Christian leadership; that the Maryknoll Sisters Parish Work, Inc. is the registered owner of a parcel of land situated at the Katipunan Road, Loyola Heights, Quezon City covered by Transfer Certificate of Title No. 240817 issued by the Register of Deeds of Quezon City; and that for and in consideration of the corporate mission of the Miriam College Foundation, Inc. and as an act of liberality and generosity, and to contribute to the attainment of the objectives of such mission, the Maryknoll Sisters Parish Work, Inc. voluntarily and freely gives, transfers and conveys, by way of donation to the Miriam College Foundation, Inc. the above described property. In reply, please be informed that inasmuch as the donee is an educational institution, the aforesaid donation is 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 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). LexLib 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