San Jose Del Monte City Water District

December 19, 2008 BIR RULING [DA-(DT-027) 562-08] 101 (A) (2); DA-095-2008 San Jose Del Monte City Water District Road 1, Brgy. Minuyan, City of San Jose Del Monte, Bulacan Attention: Engr. Loreto G. Limcolioc General Manager Gentlemen : This refers to your letter dated October 23, 2006 requesting exemption from the payment of donor's tax related to the donation of a parcel of land to the San Jose Del Monte City Water District. It appears that Citihomes Builder and Development, Inc., (Donor) is a corporation existing under the laws of the Republic of the Philippines with business address at 11th Floor, Phil. Axa Life Centre, Sen. Gil Puyat Avenue, Makati City; that it is the registered owner and developer of the subdivision project known as Northgate Park Executive Homes Phase 1 and 2 (Project), located at Brgy. Sto. Cristo, City of San Jose Del Monte, Bulacan; that San Jose Del Monte City Water District (Donee) is the franchise holder for water services in the City of San Jose Del Monte, Bulacan, authorized under P.D. 198; that a follow-up letter from the Office of the Government Corporate Counsel is attached confirming the transaction; that the Donor is willing to transfer and convey to the Donee the ownership, operation, and maintenance of the water system of the Project; and that the subject of the donation is a parcel of land of 229 square meters covered by Transfer Certificate of Title No. T-445613 (M) issued by the Registry of Deeds of Meycauayan, Bulacan and classified as a community facility in its tax declaration. In reply, please be informed that inasmuch as the donee is an entity created by the government, 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 is not subject to documentary stamp tax. However, the acknowledgement on said deed is subject to documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling DA-S-30-009-03 dated April 4, 2003) This ruling is being issued on the basis of the forgoing 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. CEASaT Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service