BIR Ruling [DA-647-99]

November 22, 1999 BIR RULING [DA-647-99] Shiloh International Apostolic Mission, Inc. C2 Capulong cor. J. P. Rizal Street Tondo, Manila Attention: Pastor Rodolfo F . Guintu Gentlemen : This refers to your letter dated April 5, 1999 requesting for exemption from the payment of donor's tax on the donation of a parcel of land with improvements thereon by Shiloh International Apostolic Mission, Inc. to International Mustard Seed missions, Inc. cdlex It appears that the International Mustard Seed Missions, Inc., is a non-stock, non-profit religious corporation duly registered with the Securities and Exchange Commission on April 30, 1992 under SEC Registration No. AN092-0000001653; that the purpose for which the religious corporation was formed is for the administration of its affairs, properties and temporalities; that the Shiloh International Apostolic Mission, Inc. is the registered owner of a parcel of land consisting of Two Hundred Eighty One (281) square meters situated at Bo. Pasong Tamo, Quezon City covered by Transfer Certificate of Title No. 38394 issued by the Registry of Deeds for Quezon City; and that not more than thirty percent (30%) of the donated property shall be used by the donee for administration purposes. In reply, please be informed that inasmuch as the donee is a religious organization, 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 no more than 30% of said gift 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. llcd 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) 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)