BIR Ruling [DA-618-04]

December 6, 2004 BIR RULING [DA-618-04] Section 101 (A) (2) BIR Ruling No. 108-94; DA-379-97 & DA-191-01 Tambunting Realty Corporation 8/F, Builders Center 170 Salcedo St., Legaspi Village Makati City Attention: Mr. Ramon C. Tambunting President Gentlemen : This refers to your letter dated October 26, 2004 requesting for exemption from the payment of donor's tax relative to the donation of real property by Tambunting Realty Corporation in favor of The City Government of Quezon City. Documents show that on August 24, 2004, a Deed of Donation was executed by and between Tambunting Realty Corporation, as represented by Antonio P. Tambunting, Jr. and The City Government of Quezon City, as represented by Hon. Feliciano R. Belmonte, Jr., transferring to The City Government of Quezon City a parcel of land with the buildings and improvements thereon, with a total area of 2,422 square meters situated in Quezon City and covered by Transfer Certificate of Title No. N-251120; and that The City Government of Quezon City is a public corporation. DacTEH In reply, please be informed that since the donee is a political subdivision of the Government, the aforementioned donation of a parcel of land with the buildings and improvements thereon, 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 P15.00 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. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal & Inspection Group