BIR Ruling [DA-644-04]

December 21, 2004 BIR RULING [DA-644-04] 101 (A) (3) S-30-006-02 Mr. Pedro Adrian Nacu 124 E. Kanlaon Street Quezon City S i r : This refers to your letter dated September 27, 2004 requesting exemption from the payment of donor's tax on the donation of a parcel of land by Ms. Pilar Nacu Brandewie , Filipino citizen, and permanently residing in United States of America to the Institute of Reconciliation Foundation, Inc . It is represented that Ms. Pilar Nacu Brandewie is the owner of an undivided parcel of land located at Soler and Evangelista Sts., Sta. Cruz, Manila, covered by Transfer Certificate Title No. 70736 issued by the Register of Deeds for the City of Manila; that Institute of Reconciliation Foundation, Inc., operated by the Missionaries of Our Lady of La Salette, Ina ng Pag-Asa Province, Santiago City, Isabela, is a non-stock, non-profit corporation organized for social welfare purposes, duly registered with the Securities and Exchange Commission (SEC) on August 18, 2003 under SEC Registration No. CN200318260; and that the donation is intended in honor of the memory of Ms. Pilar Nacu Brandewie's grandmother, Barbara Bismanos. In reply, please be informed that inasmuch as the donee is a corporation organized for the promotion of social welfare as contemplated under Section 30(G) of the Tax Code of 1997, the aforementioned 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 thirty percent (30%) of said gift shall be used for administration purposes. Moreover, the aforesaid Deed of Donation is not subject to documentary stamp tax prescribed under Section 196 of the Tax Code of 1997, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the same Code. (BIR Ruling No. S-30-006-02 dated March 12, 2002) TcSHaD 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, (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service