Brgy. Capt. Felicitas T. Singco

March 12, 2010 BIR RULING [DA-(DT-005) 040-10] Section 101 (A) (2); BIR Ruling Nos. 187-87, 228-88 & 196-90; DA-063-97, DA-618-04 & DA-384-08 Brgy. Capt. Felicitas T. Singco Barangay Poblacion Municipality of Ginatilan Cebu Madam : This refers to your letter dated December 22, 2006 requesting on behalf of the Poblacion Barangay Council for exemption on donor's tax and charges due on the donation of real property by the Family of Mrs. Emeliana E. Tayong in favor of the Barangay Poblacion. Documents show that on December 31, 2006, Emeliana, Pablito, Ferdinand, Marissa, and Maricel, all surnamed Tayong, all residents of Poblacion, Ginatilan, Cebu donated a portion of that real property situated in Sitio Cambogolan, Barangay Poblacion, Ginatilan, Cebu covered by Tax Declaration No. 12190M-31842 and consisting of 240 square meters, more or less, to be used in providing a Day Care/Multi-Purpose Center. In reply, please be informed that since the donee is a political subdivision of the Government, the aforementioned donation of a parcel of land is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997, as amended. Moreover, the aforesaid Deed of Donation is not subject to the documentary stamp tax under Section 196 of the Tax Code of 1997, as amended but only to the documentary stamp tax of PhP15.00 on certification under Section 188 of the same Code. On the issue of charges, this Office has no jurisdiction to rule thereon. cASIED 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 as null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) MARISSA O. CABREROS OIC-Assistant Commissioner Legal Service