City of Marikina

October 29, 2008 BIR RULING [DA-(DT-019) 366-08] DA611-06 City of Marikina 2nd Floor, City Legal Office Sta. Elena, Marikina City Attention: Atty. Nancy Villanueva Teylan Acting City Attorney Gentlemen : This refers to your letter dated October, 2008 stating that the LGTM Corporation (LGTM) is a domestic corporation organized and existing under the laws of the Philippines with principal office address at Unit 802 Antel Globe Corporate Center, Julia Vargas Avenue, Ortigas Center, Pasig City; that on the other hand, the City Government of Marikina is a local government unit duly organized under Republic Act (R.A.) No. 7160; that LGTM is the registered owner of two (2) parcels of land located at Nangka, Marikina City covered by TCT Nos. 461284 and 461282 issued by the Registry of Deeds for Marikina City; that on August 31, 2005, a Deed of Donation was executed by the LGTM, as the Donor, and City Government of Marikina, as the Donee; and that the Donee aimed to improve the basic serves and facilities by providing recreational and public school facilities as well as river park improvements that enable its constituents better access to basic services and education that will foster learning among the youth and improve the quality of life of its constituents. On the other hand, Leoniza Andres and Juanito Reyes are the absolute and registered co-owners of a parcel of land located at Nangka, Marikina City covered by TCT No. 215677 issued by the Registry of Deeds for Marikina City and containing an area of 140 square meters; that on June 6, 2005, a Deed of Donation was executed by them in favor of the City Government of Marikina in compliance with Section 31 of Presidential Decree (P.D.) No. 957, as amended by P.D. No. 1216 which requires that roads and open spaces of subdivision reserved for parks, playground and recreational use and which are classified as non-alienable and non-buildable, shall upon their completion, be donated by the developer or owner to the city of municipality where it is located. Finally, on November 30, 2005, another Deed of Donation was executed by Spectrum Agro-Industrial Development Corporation, as Donor, in favor of the City Government of Marikina involving 19 parcels of land consisting of 12 road lots, parks and playground, 4 alleys, right of way and health center, all located at the Parkland Estate Subdivision located in Bo. of Malanday, Marikina and more particularly described as follows: Title No. Description Area (sq.m.) 28389 Road Lot 1 2,041 28390 Road Lot 2 4,182 28391 Road Lot 3 783 28392 Road Lot 4 704 28393 Road Lot 5 652 N-89360 Road Lot 6 4,006 28395 Road Lot 7 2,480 28396 Road Lot 8 4,012 28397 Road Lot 9 396 28398 Road Lot 10 396 28399 Road Lot 11 2,201 28400 Road Lot 12 1,555 28387 Block 12 Lot 5 (healthcenter) 400 28288 Alley, Lot 27 Blk. 7 80 28322 Alley, Lot 34 Blk. 8 152 28351 Alley, Lot 29 Blk. 9 152 28388 Lot 6 Blk. 12 (park & 7000 playground) N-65607 Alley, Lot 3 80 N-89361 Right of Way, Lot 36 158 Based on the foregoing representations, you now request for an opinion that the donation of the aforesaid parcels of land by the above-named Donors to the City of Marikina is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997. In reply thereto, please be informed that since the donee is a political subdivision of the Government, the aforementioned donation of the above-mentioned properties is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997. Moreover, the aforesaid Deeds of Donation are not subject to the documentary stamp tax prescribed in Section 196 of said Code but only to the documentary stamp tax of P15.00 on certification under Section 188, supra. 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. ATcaHS Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service