Eastern Visayas State University

May 26, 2009 BIR RULING [DA-(DT-030) 253-09] Section 101 (A) (2); BIR Ruling No. DA-302-03 Eastern Visayas State University Tacloban City, Leyte Attention: Mr. Catalino B. Beltran, Ph. D President Gentlemen : This refers to your letter dated November 26, 2008 requesting for a ruling that the donation to Eastern Visayas State University ("EVSU" for brevity) of personal properties is exempt from donor's tax pursuant to Republic Act (R.A.) No. 9311, otherwise known as the "Act Converting the Leyte Institute of Technology into a State University to be known as the Eastern Visayas State University". AHcaDC Documents show that Eastern Visayas State University with Tax Identification No. (TIN) 650-000-611-739, situated in Tacloban City, Leyte is a chartered state university duly organized and existing under and by virtue of R.A. No. 9311. On November 3, 2008, a Deed of Donation was executed by Hitachi Global Storage Technologies Philippines, Corp., with TIN #003877-830, with address at Special Export Processing Zone, Laguna Technopark, Bian, Laguna, in favor of EVSU transferring personal properties valued at US$162,262.63 which is itemized below: Quantity Model No. Description Value (USD) 1 set MX50 DMRM Stereo Microscope 28,029.17 1 set INM200 Leica 4,271.78 1 set INM200 Leica INM 200 14,988.49 1 set INM200 Leica INM 200 1,591.97 1 set SOVIS Sovis 29,189.24 1 set SOVIS Sovis 32,203.90 1 set HD3300 Wyko 1,187.59 1 set HD3300 Wyko 878.40 1 set HD2100 Wyko 686.95 1 set N/A Engis Facing Tool 2,361.30 1 set N/A Engis Facing Tool 7,095.40 1 set N/A ABS Lap (Vertical Lap Tool 15/15) 59,730.90 1 set N/A Hprez Charging Tool 5,469.50 1 set N/A Hprez Charging Tool 4,578.04 Total: 14 sets 192,262.63 ======== On the other hand, on November 19, 2008, a Deed of Donation was executed by Hitachi Global Storage Technologies Singapore, Pte. Ltd. , with address at Blk 4 Kaki Bukit Avenue 1 #03-08 Singapore 417939, in favor of EVSU transferring personal properties valued at US$162,262.63 which is detailed as follows: Quantity Model No. Description Value USD 1 set 4397A Pallet Load Station 150,793.16 Total: 1 set 150,793.16 ======== In reply, please be informed that the aforementioned donations of personal properties are exempt from the payment of donor's tax pursuant to Section 7 of R.A. No. 9311, which provides as follows: "SEC. 7. Powers and Duties of the Board of Regents . The Board shall have the following specific powers and duties in addition to its general powers of administration and the exercise of all the powers granted to the Board of Directors of a corporation under existing laws: xxx xxx xxx d. To receive in trust, legacies, gifts and donations of real and personal properties of all kinds and to administer and dispose of the same when necessary for the benefit of the University, and subject to the limitations, directs and instructions of the donor, if any. cSDHEC Such donations shall be exempt from donor's tax and the same shall be considered as allowable deductions from the gross income in the computation of the income tax of the donor, in accordance with the provisions of the National Internal Revenue Code (NIRC), a amended: Provided, That such donations shall not be disposed of, transferred or sold. " Under Section 101 (A) (2) of the Tax Code of 1997, as amended, gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit or to any political subdivision of the said Government shall be exempt from donor's tax. Since the donee is an entity created by an agency of the Government which is not conducted for profit, the donations of personal properties to it are exempt from the payment of donor's tax. Moreover, the aforesaid Deeds of Donation are not subject to the documentary stamp tax under Section 196 of the Tax Code of 1997, as amended, but only to the documentary stamp tax of PhP15.00 on certification under Section 188 of the same 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 as null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service