Ms. Gina Cardona

September 17, 2009 BIR RULING [DA-(DT-054) 556-09] 101 (A) (2); DA-481-98 Ms. Gina Cardona c/o Emerald St., Extension Fantasy Neighborhood Association, Inc. Brgy. Nova Proper, Novaliches Quezon City Madam : This refers to your letter dated July 1, 2009, requesting for exemption from the payment of donor's tax under Section 101 of the Tax Code of 1997. Documents submitted disclosed that a Deed of Donation was executed by and between Mr. Ricardo M. Gonzales and the Quezon City Government on March 5, 1969; that the donor, Mr. Ricardo M. Gonzales is the registered owner in fee simple of a certain parcel of land, Lot 141, Tala Estate covered by TCT No. 134989 of the Registry of Deeds of Quezon City, situated in the District of Novaliches, Quezon City and more particularly bounded and described as follows: "A parcel of land (Lot 141 of the Tala Estate, G.L.R.C. Record No. 6563, situated in the District of Novaliches, Quezon City, Island of Luzon. Bounded North by Lot Nos. 768 and 129, on the East by Lot Nos. 761, 1023, 726, 139, 138, 137, 135, and 725, on the South, by Lot No. 133; and on the West, by Lot Nos. 142, 143, 144, 145, and 148 . . . containing an area of EIGHTY THOUSAND THREE HUNDRED ONE SQUARE METERS (80,301) more or less." DHaECI That the DONOR has caused the subdivision of the above-described parcel of land into residential lots for sale to the general public and has allocated and reserved a portion of the said parcel as an Open Space, more particularly bounded and described as follows: "A parcel of land (Open Space Lot 1, Block 3 of the subdivision plan (LRC) Psd _____, being a portion of Lot 141, Tala Estate, G.L.R.C. Record No. 6563), situated in the District of Novaliches, Quezon City, Island of Luzon, Bounded on the North, by Lot 2, Block 3, of the subdivision plan; on the East, by Lot Nos. 139, 138, 137, 135 and 725 all of Tala Estate; on the South by Lot 143, Tala Estate; and on the West by Road (10 M. Wide) of the subdivision plan. . . . containing an area of FOUR THOUSAND EIGHT HUNDRED EIGHTEEN (4,818) SQUARE METERS, more or less." that the above-described lot is now subject of Memorandum of Agreement between the City Government and Emerald St., Extension Fantasy Neighborhood Association Inc. and Christ Global Mission Foundation, Inc.; and that this request for exemption is requisite for the transfer of ownership to the City Government considering that the donee is a political subdivision of the government. In reply, please be informed that inasmuch as the donee is a political subdivision of the National Government and the real property subject of said donation shall be exclusively utilized as a municipal road, the aforesaid donation is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997. HAISEa 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