Roman Catholic Bishop of Antipolo

July 15, 2008 BIR RULING [DA-(DT-003) 046-08] Section 30; BIR Ruling No. S-30-096-99 Roman Catholic Bishop of Antipolo Diocesan Curia Taktak Road, Antipolo City Attention: Rev. Fr. Reynante U. Tolentino Head, Properties Administration Department Gentlemen : This refers to your letter dated November 14, 2006 requesting for exemption from the payment of donor's tax on the donation of a parcel of land by Ms. Gloria Gonzales Lim in favor of the Roman Catholic Bishop of Antipolo. aSTAcH Documents show that the Roman Catholic Bishop of Antipolo is a religious corporation-sole duly registered with the Securities and Exchange Commission (SEC) under SEC Registration No. 115616 dated September 1, 1983. The purpose for which it was organized is to administer the temporalities and manage the affairs, estate and properties of the Roman Catholic Church in the Philippines within its territorial jurisdiction. On the other hand, Ms. Gloria Gonzales Lim is the registered owner of a parcel of land situated at Barangay Halayhay, Pililla, Rizal covered by Transfer Certificate of Title No. M-26411 of the Register of Deeds of Morong, Rizal with an area of 34,246 square meters. HScAEC On August 15, 2006, a Deed of Donation was executed by and between Ms. Gloria Gonzales Lim and the Roman Catholic Bishop of Antipolo whereby the former donated to the latter the above-described real property. In reply, please be informed that gifts in favor of an educational and/or charitable, religious, cultural or social welfare corporation, institution, accredited non-government organization, trust or philanthropic organization or research institution or organization is exempt from the payment of the donor's tax pursuant to Section 101 (A) (3) and (B) (2) of the Tax Code of 1997, subject to the condition that not more than 30% of said gift shall be used by the donee for administration purposes. SDHacT Moreover, the 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 PhP15.00 on certification under Section 188 of the same Code (BIR Ruling No. DA-123-2001 dated July 18, 2001). However, if the same property acquired by gift is subsequently conveyed by way of sale or exchange, the sale will be subject to corporate income tax on the gain realized which is determined by deducting from the gross selling price the historical cost or the adjusted basis thereof, as it would be in the hands of the donor, pursuant to Section 27 in relation to Section 101, both of the Tax Code, and consequently to the creditable expanded withholding tax under Revenue Regulations No. 2.57.2 of Revenue Regulations No. 2-98, as amended. If it is donated to a nonexempt donee, the donor shall be liable for donor's tax pursuant to Section 98 in relation to Section 91 (B) of the Tax Code. ATHCac 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.) JAMES H. ROLDAN Assistant Commissioner Legal Service