Atty. Francisco I. Naputo, CPA

December 5, 2008 BIR RULING [DA-(DT-024) 505-08] 101 (A) (3); DA (DT-005) 099-2008 Atty. Francisco I. Naputo, CPA 73 Apacible St., Philam Village Las Pias City Sir : This refers to your letter dated September 29, 2008 requesting on behalf of your client, North Philippine Union Mission Corporation of the Seventh-Day Adventist Church ("NPUM" for brevity), for exemption from the payment of donor's tax on the proposed donation of real properties together with improvements existing thereon by various members of the Seventh-day Adventist Church to NPUM. It appears that NPUM is a non-stock, non-profit religious corporation created under the laws of the Philippines and is duly registered with Securities and Exchange Commission (SEC) under SEC Registration No. CN200617734 dated November 28, 2006; that the following church members are proposing to donate their real properties in Palawan to NPUM, to wit: Name of Donor/s OCT/TCT No. Area in Sq.m. 1. Carlito Fonte & Felicidad Cayao P-10954 39,243 2. Cesar D. Dizon, Jr. & Fredelyn B. Dizon P-12657 1,751 3. Honesto P. Mercado, Jr. TC-1550 900 4. Leonito Orqueza & Noemi Subang E-21961 776 5. Jerry Tamao & Ma. Sherlita Tamao E-21985 772 6. Leoben Guevarra & Mildred Guevarra C-3857 600 7. Jerry Tamao & Ma. Sherlita Tamao C-3858 596 8. Andrea de la Cruz E-6391 400 and that the OCTs/TCT are all issued by the Register of Deeds for the Province of Palawan. IEHDAT In reply, please be informed that inasmuch as the donee is a religious corporation, donations to it are exempt from the payment of donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, as amended, subject to the condition that not more than 30% of said gift shall be used by the donee for administration purposes. The Register of Deeds shall, however, annotate this condition at the back of the OCTs/TCT because failure to comply with the said condition shall be a ground for the revocation of the donation pursuant to Article 764 of the New Civil Code. Moreover, the Deed of Donation that will be executed for the purpose is not subject to documentary stamp tax under Section 196 of the Tax Code of 1997, as amended. However, the acknowledgment on said deed is subject 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 disclosed 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