Municipality of Cavinti

November 11, 2008 BIR RULING [DA-(DT-022) 412-08] 101 (A) (2); DA-481-98 Municipality of Cavinti Laguna Attention: Hon. Florcelie L. Esguerra Municipal Mayor Gentlemen : This refers to your letter dated May 19, 2008, requesting for exemption from the payment of donor's tax under Section 101 of the Tax Code of 1997. Documents submitted disclosed that Mr. Francisco Chua, married to Tan Po Giok, is the registered owner of a parcel of land more particularly described as follows: Transfer Certificate of Title No. T-242397 "A parcel of land (Lot1-F of subdivision plan (LRA) Psd-382894 approved as non-subdivision project, being a portion of Lot 1, PSU-243925; LRC Case No. N-68 Record No. N-42545), situated in Brgy. West Talaongan, Cavinti, Laguna. Bounded on the N., points 1 to 2 by Road; on the E., points 2 to 3 by Bonifacio Flores; on the SW & SE., points 3 to 6 by Macario Pereja and on the W., points 6 to 1 by Lot 1-E of subdivision plan, containing an area of FIFTEEN THOUSAND Square Meters (15,000 sq.m.) more or less." that on December 12, 2006, a Deed of Donation was executed by and between Mr. Francisco Chua and the Municipality of Cavinti represented by Hon. Florcelie G. Esguerra wherein the donor (Mr. Chua) voluntarily gives, transfers and conveys by way of donation unto the donee (Municipality of Cavinti), the above-described property together with all the improvements thereon, free from all liens, encumbrances and charges of whatever; and that said property will be used for the future development plans preferably for the construction of public buildings/structures and for the establishment of government facilities in the area. In reply, please be informed that inasmuch as the donee is a political subdivision of the National Government and the real property subject of said donation shall be exclusively utilized as a municipal road, the aforesaid 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 executed for the purpose is not subject to the documentary stamp tax. However, the notarial acknowledgment on said deed is subject to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling No. DA-481-98 dated November 9, 1998) AaEDcS Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service