National Bureau of Investigation

April 29, 2010 BIR RULING [DA-(DT-010) 058-10] Sec. 101 (A) (2); BIR Ruling 215-82 National Bureau of Investigation Central Visayas Regional Office Cebu City Attention: Medardo G. de Lemos Regional Director Gentlemen : This refers to your letter dated January 21, 2010 requesting for exemption from the payment of donor's tax and capital gains tax relative to the donation of a property by the Provincial Government of Cebu to the National Bureau of Investigation. It appears that the Provincial Government of Cebu, a local government unit and a political subdivision of the Republic of the Philippines, with a seat of government and address at the Cebu Capitol Building, Cebu City is the registered owner of a parcel of land with an area of one thousand six hundred fifty seven square meters (1,657 sq. m.) located at Capitol Site, City of Cebu, particularly described as Lot 1, Blk-2, pcs. 565 (SWO-19208);that the Provincial Government of Cebu donated the said property to the National Bureau of Investigation; that the National Bureau of Investigation is an agency of the Republic of the Philippines, with office address at Taft Avenue, Manila. In reply, please be informed that inasmuch as the donation is made to the National Government, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997. Moreover, the Deed of Donation is not subject to the capital gains tax and to the documentary stamp tax prescribed under Section 196 of the Tax Code of 1997, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the same Tax Code. DAETcC This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) MARISSA O. CABREROS OIC-Assistant Commissioner Legal Service