RML Realty and Development Corporation

October 30, 2008 BIR RULING [DA-(DT-020) 374-08] Sec. 101 (A) (3); DA 562-06 RML Realty and Development Corporation 124 E. Rodriguez Jr. Ave. Pasig City Attention: Fernando M. Lim COO Gentlemen : This refers to your letter dated September 15, 2008 requesting for exemption from the payment of donor's tax and capital gains tax relative to the donation in favor of the City Government of Tagaytay. It is represented that RML Realty and Development Corporation (RML) is the developer of a certain subdivision project denominated as "Royal Pines 1" (the Project), located at Barangay Kaybagal, Tagaytay City; that a Deed of Donation was executed by RML as donor, and the City of Tagaytay, as represented by its Mayor, Honorable Abraham Tolentino, as donee; that the objects of the donation are the roads, alleys, sidewalks and playground of the Project, in particular, the parcels of land covered by TCT No. T-27035, TCT No. T-28976, TCT No. T-28977, TCT No. T-27038, TCT No. T-28922, and TCT No. T-26955. In reply, please be informed that inasmuch as the donee is a political subdivision of 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. IcTaAH 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, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service