San Jose Del Monte City

January 7, 2009 BIR RULING [DA-(DT-001) 004-09] 101 (A) (2); DA-095-2008 San Jose Del Monte City Water District Road 1, Brgy. Minuyan, City of San Jose Del Monte, Bulacan Attention: Ms. Virginia S. de Silva Manager, Admin. & Finance Department Gentlemen : This refers to your letter dated July 24, 2008 requesting exemption from the payment of donor's tax related to the donation of a parcel of land to the San Jose Del Monte City Water District. EScHDA It appears that Borland Development Corporation, (Donor) is a corporation existing under the laws of the Republic of the Philippines with business address at 1039 Quirino Highway, Novaliches, Quezon City; that the donor is the owner of the water distribution system at Villa San Jose Subdivision located at Brgy. Graceville, City of San Jose del Monte, Bulacan; and that the donor through the execution of a Deed of Donation and Acceptance dated March 31, 2006 donated the entire water distribution system in said subdivision including the lot to where it is situated, together with all its accessories covered by Transfer Certificate of Title No. T-474585 (M), issued by the Register of Deeds for the Province of Meycauayan, Bulacan. In reply, please be informed that inasmuch as the donee is an entity created by the government, the aforesaid donation is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997. Moreover, the Deed of Donation is not subject to documentary stamp tax. However, the acknowledgement on said deed is subject to documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling DA-S-30-009-03 dated April 4, 2003) This ruling is being issued on the basis of the forgoing 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.) JAMES H. ROLDAN Assistant Commissioner Legal Service