Atty. Rey Christopher D. Fajardo

April 2, 2009 BIR RULING [DA-(DT-018) 182-09] Section 101 (A) (2); BIR Ruling No. DA-302-03 Atty. Rey Christopher D. Fajardo Lot 8-F Block 4 Abigail St., Hobard I Subd. Brgy. Pasong Tamo, Quezon City Sir : This refers to your letter dated November 11, 2008 requesting, on behalf of your client, Mayantoc Water District (MWD) for a ruling that the donation to it of a real property is not subject to donor's tax. As represented, MWD, with Tax Identification No. 004-074-744-000, situated in Mayantoc, Tarlac is a quasi-government corporation duly organized and existing under and by virtue of Presidential Decree No. 198, as amended. On the other hand, Gonzalo Captan with postal address in Brgy. San Bartolome, Mayantoc, Tarlac is the registered owner of a parcel of land also situated in Brgy. San Bartolome, Mayantoc, Tarlac covered by Tax Declaration No. 08021-391 with an area of 1,051 square meters. aDCIHE On April 30, 2002, a Deed of Donation was executed by Gonzalo Captan in favor of MWD transferring a portion of the abovedescribed property, consisting of 6 meters by 6 meters in width, to the latter exclusively for the construction of deep well and to house the water facilities of MWD. In reply, please be informed that since the donee is an agency of the Government which is not conducted for profit, the aforementioned donation of a parcel of land is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997, as amended. Moreover, the aforesaid Deed of Donation is not subject to the documentary stamp tax under Section 196 of the Tax Code of 1997, as amended, but only to the documentary stamp tax of PhP15.00 on certification under Section 188 of the same Code. 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 as null and void. IDAESH Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service