Philippine Council of Cheshire Homes for the Disabled

April 27, 2009 BIR RULING [DA-(DT-021) 214-09] Section 101 (A) (3); S30-056-2001 Philippine Council of Cheshire Homes for the Disabled No. 8 Saint Michael Street, Cubao Quezon City Attention: Sr. M. Valeriana Baertz, icm Chairman of the Board Gentlemen : This refers to your letter dated August 6, 2008 requesting for exemption from the payment of donor's tax relative to the donation/assignment of a parcel of land by the Aurora Aragon Quezon Memorial, Inc. in your favor by virtue of a Deed of Assignment executed on November 28, 2001. It is represented that the Philippine Council of Cheshire Homes for the Disabled was established in the early 70's to provide temporary shelter to persons with disabilities who had nowhere to go after being discharged from the National Orthopedic Hospital; that one of the homes is located in Arlegui Quiapo named as "Bukang Liwayway"; that this is a home for the male disabled who sell religious items within the vicinity of the Quiapo church; that the registered owner of the lot is the Aurora Aragon Quezon Memorial, Inc. covered by Transfer Certificate of Title No. 55558 and is willing to transfer the certificate of land title to the Philippine Council of Cheshire Homes for the Disabled. In reply, please be informed that inasmuch as the donee is a charitable institution, 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 Assignment 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. EICSTa Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service