Ortega, Del Castillo & Bacorro Law Offices

March 20, 2009 BIR RULING [DA-(DT-016) 167-09] Sec 30 (H); DA-630-07 Ortega, Del Castillo & Bacorro Law Offices Alpap 1 Bldg., 140 Leviste St. Makati City Attention: Ethel R. Molina Gentlemen : This refers to your letter dated February 2, 2009 wherein you requested in behalf of your client, Hellenic Orthodox Foundation, Inc. (Hellenic, for brevity), for confirmation of your opinion that the donation by Hellenic of a parcel of land and its improvements to Ecumenical Patriarchate Orthodox Metropolitanate of Hong Kong and Southeast Asia Affiliate in the Philippines (Affiliate, for brevity) is exempt from donor's tax. It is represented that Hellenic (donor) is the owner in fee simple of that certain property with the buildings and improvements thereon, situated in Paraaque City, more particularly described in Transfer Certificate of Title No. 95327 of the land registry of Paraaque City with an area of eight hundred eight (808) square meters, more or less; that Affiliate (donee) is a corporation sole (religious) duly registered with the Securities and Exchange Commission under SEC Reg. No. CN200705128 dated February 12, 2008; and that for and in consideration of the propagation by the donee of the Orthodox faith in the Philippines, the donor transfers and conveys, by way of donation, unto the donee the above-described real property with all the buildings and improvements. In reply, please be informed that inasmuch as the donee is a religious organization, the aforementioned 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 is not subject 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. 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. LLpr Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service