Mission Congregation of the Sisters Servants of the Holy Spirit

February 20, 2009 BIR RULING [DA-(DT-011) 116-09] 101 (A); DA-481-98 Mission Congregation of the Sisters Servants of the Holy Spirit Pres. Magsaysay Ext., Kasambagan 6000 Cebu City Attention: Sister Estela Parmisano, SSps Provincial Leader Gentlemen : This refers to your letter dated January 4, 2007, requesting for exemption from the payment of donor's tax under Section 101 of the Tax Code of 1997. Documents submitted disclosed that Ms. Paz S. Mercado is the only surviving heir of Ms. Isabel S. Mercado; that the deceased left an estate consisting of 1/3rd portion of a parcel of land designated as Lot 460-B, measuring 2,540 square meters, more or less located in the City of Cebu as evidenced by Transfer Certificate of Title No. 36994 and more particularly described as follows: "TCT 36994" "A parcel of land (Lot 460-B of the subdivision plan PSD-1564, being a part of Lot No. 460 of the Banilad Friar Lands Estate, G.L.R.O. Rec. No. 5988), situated in the barrio of Cogon, City of Cebu (formerly Municipality of Cebu, Province of Cebu). Bounded on the NE. by Lot Nos. 394 & 395; on the SE. by Lot No. 391; on the SW. by Lot No. 460-A of the subdivision plan; and on the NW. by Lot No. 460-C of the subdivision plan. Beginning at a point marked "1" on the plan, being N. 41 deg. 39'W., 233.54m. from Mon. A, Banilad Estate, thence S.9 deg. 56'W., 32.50 m. to point 2; thence S.24 deg. 50'W., 36.90 m. to point 3; thence S. 68 deg. 06'W., 20.45 m. to point 4; thence N. 28 deg. 23'W., 52.74 m. to point 5; thence N. 67 deg. 41'E., 70.39 m. to point of beginning; containing an area of Two Thousand Five Hundred and Forty square meters (2,540) more or less." that the estate tax has already been paid as evidenced by the Certificate Authorizing Registration issued by Revenue District Office No. 81, Revenue Region No. 13, Cebu City-North; that being the sole heir, Ms. Paz S. Mercado adjudicated unto herself the above-described property pursuant to Rule 74, Section 1 of the Rules of Court; that for and in consideration of the love and affection which Ms. Paz S. Mercado has for the SSPS. Missionary Sisters, Inc., the former transfers and conveys by way of donation inter vivos unto the latter the said property, including all the improvements found therein, free from all liens and encumbrances; and that SSPS. Missionary Sisters, Inc. accepted the donation of the said property. aIHSEc 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) Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service