BIR Ruling [DA-622-99]

November 3, 1999 BIR RULING [DA-622-99] Asian Student Christian Foundation, Inc. 24 Parinas St. Proj. 8, Quezon City Attention: Rev . Craig Burrows Gentlemen : This refers to your letter dated June 18, 1999 requesting exemption from the payment of donor's tax on the donation of a parcel of land by Mrs. Marivic V. Burrows in favor of the Asian Student Christian Foundation, Inc. It is represented that the Asian Student Christian Foundation, Inc. (ASCF) is a non-stock, non-profit charitable corporation duly registered with the Securities and Exchange Commission under SEC Registration No. ANO91-196386 dated October 3, 1991; that the donor is a registered owner of a parcel of land consisting of a total area of 308 sq. meters covered by the Transfer certificate Title No. 42569 issued by the Registry of Deeds of Quezon City; that the donee has been using the lot since 1991 and since the donor is already residing in the United Kingdom, she wishes to charitably dispose said parcel of land; and that as per attached Deed of donation, inasmuch as the acquisition by the donor of the property being donated was made possible because of the generous and gracious support from Asian Students Christian Trust, a registered charity in England British Charity Commission #272328, any change in the use of the property or disposition in whatever manner, such as sale, assignment or donation cannot be made or entered into without the consent of Asian Studies Christian Trust through a duly certified Board Resolution allowing such change in use or disposition and the like of the property being donated. In reply, please be informed that inasmuch as the donee is a non-stock, non-profit charitable corporation, the aforementioned donation is exempt from the payment of the donor's tax pursuant to Section 101(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 the 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. Moreover, the aforesaid Deed of Donation 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 DA-481-98 dated November 9, 1998) cdlex 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