Heirs of Nicolas Alfarero, et al.

March 12, 2010 BIR RULING [DA-(DT-007) 042-10] Section 101 (A) (2); BIR Ruling Nos. 187-87, 228-88 & 196-90, DA-063-97, DA-618-04 & DA-384-08 Heirs of Nicolas Alfarero, et al. Barangay San Isidro Tagbilaran City Gentlemen : This refers to your request for exemption from donor's tax on your donation of real property in favor of Barangay Government of San Isidro, Tagbilaran City. Documents show that on May 21, 1998, Anatalio, Felix, Epitasia, Teresita, Emiberto, Florencia, Estela, Alberta, Eugenio, Glicerio, all surnamed Alfarero and residents of Lasang, Davao City representing their deceased father, Crispin Alfarero; Victor and Alejandro, both surnamed Alfarero and residents of Lasang, Davao City representing their deceased father, Rufino Alfarero; Sukarno, Gamilo, Tito and Ma. Teresa, all surnamed Alfarero and residents of Carmen, Davao del Norte and representing their deceased father, Andres Alfarero; Hilario, Ranulfo, Irenea, Floriana, Jesusa, Cipriano, Digna, Antonia, all surnamed Alfarero and residents of San Isidro, Tagbilaran City representing their deceased father, Julio Alfarero; Vilma and Jonathan, both surnamed Alfarero and residents of Sto. Tomas, Davao del Norte representing their deceased father, Venancio Alfarero; and Eufracia, Basilisa and Angela, all surnamed Alfarero and residents of Davao City executed an Extra-Judicial Settlement of Estate with Sale and Donation transferring, in favor of the Barangay Government of San Isidro, Tagbilaran City, a parcel of land (Lot 4120-G) being a portion of Lot 4120 covered by Original Certificate of Title No. 4516 and situated in San Isidro District, Tagbilaran City consisting of 315 square meters. 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. CTAIDE 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. 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