Arnel Liong

February 6, 2009 BIR RULING [DA-(DT-005) 064-09] 101 (A) (2); DA-217-08 Arnel Liong Barangay Captain Office of the Barangay Council Barangay Malagos Baguio District Davao City Sir : This refers to your letter dated December 05, 2008 requesting for exemption from the payment of donor's tax under Section 101 (A) (2) of the Tax Code of 1997, as amended. Documents submitted show that on September 25, 2008, a Deed of Donation was entered by and between Rogelio Agad, Erlinda Agad, Segundina Agad, Cristina Agad and Brenda B. Gaviola, all referred to as the donors and Barangay Malagos represented by Arnel Liong, referred to as the donee; that the donors as an act of liberality and generosity voluntarily and freely give, transfer and convey by way of donation in favor of the donee, its successors and assigns, portions of their respective parcels of land in the following manner, to wit: Rogelio Agad 615 sq.m. more or less Erlinda Agad 435 sq.m. more or less Segundina Agad 736 sq.m. more or less Cristina Agad 1,164 sq.m. more or less Brenda Gaviola 614 sq.m. more or less that said portions are within their titled properties and which are to be used as barangay road in said barangay free from all liens and encumbrances of any kind whatsoever covered by TCT Nos. T-58558, T-219618, T-219617, T-219616 and T-58981; and that the donee accept the donation of the abovementioned portion of the properties of the donors and express its gratitude for the kindness and liberality of the latter. TEcHCA In reply, please be informed that inasmuch as the donee is a political subdivision of the National Government and the real property subject of said donation shall be exclusively utilized as a barangay road, the aforesaid donation 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 Deed of Donation executed for the purpose is not subject to the documentary stamp tax. However, the notarial acknowledgment on said deed is subject to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997, as amended. (BIR Ruling No. DA-217-08 dated April 2, 2008) Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service