Ms. Ester E. Cubero

April 20, 2010 BIR RULING [DA-(DT-009) 051-10] Section 101 (A) (2); BIR Rulings No. 187-87, 228-88 & 196-90, DA-063-97, DA-618-04 & DA-384-08 Ms. Ester E. Cubero OIC, General Services Officer City Hall, Cebu City Madam : This refers to your letter dated January 30, 2008 requesting on behalf of Spouses Jardelino and Dulcesima Arellano for waiver of all expenses relative to their transfer of real properties by way of donation to the City Government of Cebu. Documents show that the City of Cebu is a public corporation duly created and existing pursuant to the laws of the Philippines with office address situated at City Hall, Cebu City. On the other hand, Spouses Jardelino Arellano (TIN No. 119-486-746-000) and Dulcesima Arellano ("Sps. Arellano" for brevity) are residents of A. Lopez St., Barangay Labangon, Cebu City. On September 27, 2007, Sps. Arellano donated to the City of Cebu parcels of land covered by Transfer Certificates of Title No. 142001 and 1420079 situated in Barangay Labangon, Cebu City with area of 80 and 90 square meters, respectively. cAaDCE 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. 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, (SGD.) MARISSA O. CABREROS Assistant Commissioner OIC, Legal Service