Office of the Barangay Council

February 20, 2009 BIR RULING [DA-(DT-007) 107-09] DA611-06 Office of the Barangay Council Barangay Malagos, Baguio District Davao City Attention: Mr. Arnel Liong Barangay Captain Gentlemen : This refers to your letter dated November 19, 2008, which was referred to this Office by Revenue Region No. 19, Davao City, by way of its Ist Indorsement dated November 26, 2008, stating that the following owners of several real properties, to wit: HCIaDT Owners TCT No. Area (sq. m.) Location Silverio Agad T-58550 5,834 Davao City Pryce Properties Corporation T-28816 21,304 Davao City Antonia Sarangsang T-43353 12,538 Davao City Jose S. Banghal, T-135728 6,269 Davao City Proceso S. Banghal, Domingo S. Banghal, Nenita B. Doliguez, Agustina B. Larioza, Inocencia B. Callo Richefer A. Econar, CL-5487 18,597 Davao City Rowin A. Econar, Rolando A. Econar that the above-named owners executed several Deeds of Donation of a portion of the above-mentioned properties in favor of Barangay Malagos, Davao City which are intended to be used as barangay roads in the said barangay. Based on the foregoing representations, you now request for an opinion that the donation of the aforesaid parcels of land by the above-named Donors to the Barangay Malagos is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997. In reply thereto, please be informed that since the donee is a political subdivision of the Government, the aforementioned donation of the above-mentioned properties is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997. Moreover, the aforesaid Deeds of Donation are not subject to the documentary stamp tax prescribed in Section 196 of said Code but only to the documentary stamp tax of P15.00 on certification under Section 188, supra. 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. DTcASE Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service