San Julio Realty, Inc.

September 9, 2008 BIR RULING [DA-(DT-009) 206-08] 24; 101 (A); DA-074-2001 San Julio Realty, Inc. City Center, San Carlos City Negros Occidental Attention: Atty. Jose P. Garcia Counsel Gentlemen : This refers to your letter dated August 26, 2008 requesting, on behalf of your client, San Julio Realty, Inc. (San Julio), for exemption from the payment of donor's tax under Section 101 of the Tax Code of 1997. Documents submitted disclosed that San Julio Realty, Inc. is a corporation organized and existing under the laws of the Republic of the Philippines with principal office at City Center, San Carlos City, Negros Occidental; that San Julio is the absolute and registered owner of a parcel of land known as Lot 1-A, Psd-06-065389, being a portion of Lot 1, Pcn-06-000108, situated in the San Carlos Business Park, City of San Carlos, Negros Occidental, Philippines, as evidenced by Transfer Certificate of Title No. T-21444, issued by the Register of Deeds of San Carlos City consisting of a total area of 4,073 square meters, more or less; that Superior of the Congregation Sainte-Famille de Villefranche de Rouergue, Inc. (Sainte-Famille) is a corporation sole with business address at San Carlos City, Negros Occidental; that during the special meeting of the Board of Directors of the Corporation held on October 22, 2008 at San Carlos City, a quorum was present and upon motion duly made and seconded, the following resolution were unanimously approved, viz. : "RESOLVED, AS IT IS HEREBY RESOLVED to donate to the SUPERIOR OF THE CONGREGATION SAINTE-DE FAMILLE DE VILLEFRANCHE DE ROUERGUE, INC., of a parcel of land, particularly Lot 1-A, Psd-06-065389, with an area of approximately 4,073 square meters, covered by Transfer Certificate of Title No. T-21444 located at the San Carlos Business Park, Brgy. Palampas, City of San Carlos, Negros Occidental." and that pursuant to the said Board Resolution, a Deed of Donation was executed by and between San Julio and Sainte-Famille transferring and conveying the above-described parcel of land to the latter, a non-stock, non-profit religious organization. In reply, please be informed that inasmuch as the donee is a religious institution, 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 donee 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) 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. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service