KEPCO Philippines Corporation
BIR Ruling [DA-(DT-025) 506-08] • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Dec 8, 2008
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December 8, 2008 BIR RULING [DA-(DT-025) 506-08] 101 (A) (3); DA-481-98 KEPCO Philippines Corporation 18th Floor, Citibank Tower 8741 Paseo de Roxas Makati City Attention: Mr. Jung In Kim General Manager, Finance Group Gentlemen : This refers to your letter dated November 18, 2008 requesting exemption from the payment of taxes that may be imposed on the donation made by KEPCO Philippines Corporation (Kephilco) to Korean School Foundation Philippines, Inc. (KSF) amounting to $350,000.00. It is represented that KEPCO Philippines Corporation is a corporation duly registered under and by virtue of the laws of the Republic of the Philippines; that the Korea School Foundation Philippines, Inc. is a non-stock, non-profit educational institution organized and registered under and by virtue of the laws of the Republic of the Philippines; that as provided in its Articles of Incorporation, KSF is authorized to operate a learning center for pre-school, elementary and high-school in accordance with the applicable laws of the Philippines; that KSF was duly accredited as a donee institution by the Philippine Council for NGO Certification last September 7, 2008 and eventually the BIR issued a Certification of Registration to KSF dated November 5, 2008; and that the Board of Directors of KEPHILCO intends to donate the amount of THREE HUNDRED FIFTY THOUSAND DOLLARS ($350,000.00) to the KSF for the purpose of enhancing its educational programs in the Philippines. TcHCIS In reply, please be informed that inasmuch as the donee is an educational institution, the aforesaid 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 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) Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service
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