Apostolic Catholic Church, Inc.

September 9, 2009 BIR RULING [DA-(DT-046) 513-09] 101 (A) (3); DA-329-2008 Apostolic Catholic Church, Inc. Barangay Salvador, Sierra Bullones Bohol Attention: Gregorio L. Mauricio Representative Gentlemen : This refers to your undated letter requesting for exemption from payment of donor's tax on the donation of a parcel of land by Cresencia Bungabong vda. de Decasa to Apostolic Catholic Church, Inc. It appears that Cresencia Bungabong vda. de Decasa is the owner of a parcel of land situated in Barangay Salvador, Municipality of Sierra Bullones, Province of Bohol covered by Transfer Certificate of Title No. 17858 containing an area of 11,014 square meters more or less issued by the Register of Deeds of Bohol; that for and in consideration of the improvements to be made by Apostolic Catholic Church, Inc. and as an act of cooperation, liberality and generosity of Cresencia Bungabong vda. de Decasa, she voluntarily and freely gives, transfers and conveys by way of donation unto Apostolic Catholic Church, Inc., its executor and administrators, all of the rights, title and interest which Cresencia Bungabong vda. de Decasa has in all portion of the above described real property free from all liens and encumbrances whatsoever, for religious purposes and said property can never be sold by Apostolic Catholic Church, Inc.; and that Cresencia Bungabong vda. de Decasa has reserved for herself and her heirs sufficient property in full ownership which is necessary and adequate for her support in consonance with her standing in the community. In reply, please be informed that inasmuch as the donee is a religious institution, 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 Transfer Certificate of Title 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. CIaDTE Moreover, the Deed of Donation that will be executed for the purpose is not subject to documentary stamp tax. However, the acknowledgment on said deed is subject to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997, as amended. 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, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service