Hitachi Global Storage Technologies Philippines Corp.

February 20, 2009 BIR RULING [DA-(DT-009) 114-09] 101 (A) (3); DA-481-98 Hitachi Global Storage Technologies Philippines Corp. Special Export Processing Zone Laguna Technopark, Bian Laguna Attention: Mr. Raul M. Hebron Legal Manager Gentlemen : This refers to your letter dated May 10, 2006 requesting exemption from the payment of taxes that may be imposed on the donation made by Hitachi Global Storage Technologies Philippines Corp. (HGSTPC) to the following schools in Laguna: AEIHaS 1. Our Lady of Lourdes Primary School, Barrio Malamig, Bian, Laguna 2. Cabuyao Central School, Cabuyao, Laguna 3. Pulo National High School, Cabuyao, Laguna 4. Pulo Elementary School, Cabuyao, Laguna 5. Pulong Sta. Cruz Elementary School, Sta. Rosa, Laguna It is represented that HGSTPC will donate thirty (30) units of television sets with brand names, Victor, Sanyo, and Aiwa, subject of LTI-SEZ Zone Manager's endorsement to the above mentioned schools within the Laguna area to enhance the teaching-learning process; that this undertaking is in line with HGSTPC's corporate policy on social responsibility; that each donee-school will receive six (6) used television units and six (6) brand-new transformers; that said items shall be subject to inspection by PEZA and Customs Examiners prior to withdrawal from the zone and shall be covered by a properly approved PEZA Form 8106; that prior to the withdrawal of the subject items from the zone, HGSTPC shall submit the following to the LTI-SEZ Zone Manager: (1) proof of payment to PEZA of processing fee for this authority amounting to P1,200.00; (2) copy of Official Receipts evidencing payment of customs duties and taxes on said items; and that a certified report on the donation of the subject items under this authority shall be included as a separate item in HGSTPC's quarterly report on its operations required to be submitted as part of reportorial requirements in accordance with Rule XXI, Section 4 of the PEZA Rules. In reply, please be informed that inasmuch as the donees are educational institutions, the aforesaid donation is exempt from the payment of donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, subject to the condition that not more than 30% of said gift shall be used by the donees for administration purposes. 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. (BIR Ruling No. DA-481-98 dated November 9, 1998) caTIDE Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service