Diocese of Balanga

August 29, 2008 BIR RULING [DA-(DT-008) 184-08] 101 (A) (3); DA-429-2003 Diocese of Balanga St. Joseph Cathedral Balanga, Bataan Attention: Socrates B. Villegas DD Bishop of Balanga Gentlemen : This refers to your letter dated July 18, 2008 requesting for exemption from the payment of donor's tax over a parcel of land donated by Angelito Mallari, Sr. in favor of the Roman Catholic Bishop of Balanga, Inc. HCEcaT It is represented that Angelito Mallari, Sr., is the registered owner of a parcel of land covered by Transfer Certificate of Title No. CLOA-7814 containing an area of 136,135 square meters more or less, located at Barangay Banawang, Bagac, Bataan; that on the other hand, the Roman Catholic Bishop of Balanga, Inc. is a corporation sole duly organized and existing under the laws of the Philippines with principal office at Balanga City, and that on July 11, 2008, a Deed of Donation was executed by the parties for and in consideration of the affection, devotion and respect of Angelito Mallari, Sr., to the Roman Catholic Bishop of Balanga, Inc. the northwestern portion of the property containing an area of 20,000 square meters more or less. In reply thereto, please be informed that inasmuch as the donee is a religious corporation, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, as amended, subject to the condition that not more than 30% of said gift shall be used by the donee for administration purposes. Moreover, the Deed of Donation is not subject to documentary stamp tax. However, the 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. 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. Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service