Mayor Vincent Franco D. Frasco
BIR Ruling [DA-(DT-056) 577-09] • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Oct 2, 2009
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October 2, 2009 BIR RULING [DA-(DT-056) 577-09] Section 101 (A) (2); BIR Ruling No. DA-618-04 Mayor Vincent Franco D. Frasco Municipal Hall Liloan, Cebu Sir : This refers to your letter dated June 9, 2009 requesting for exemption from the payment of donor's tax on the donation of real property by Aboitiz & Company, Inc. to the Municipality of Liloan, Cebu. As represented, Aboitiz & Company, Inc. is a domestic corporation registered with the Securities and Exchange Commission (SEC) under SEC Registration No. 25256 with principal office at Aboitiz Corporate Center, Gov. Manuel A. Cuenco Avenue, Cebu City. On the other hand, the Local Government Unit of the Municipality of Liloan is a government entity duly organized and existing under the laws of the Republic of the Philippines with principal office at the Municipal Hall, Liloan, Province of Cebu. On August 29, 2006, Aboitiz & Company, Inc. donated a parcel of land, denominated as Lot No. 5067-A located in Barangay Jubay, Liloan, Cebu covered by Transfer Certificate of Title No. 1707 and Tax Declaration No. 01-24-11616 and consisting of 10,000 square meters, to the Local Government Unit of the Municipality of Liloan, to be used as the Liloan market. ADcSHC In reply, please be informed that since the donee is a political subdivision of the Government, the aforementioned donation of a parcel of land is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997. Moreover, the aforesaid Deed of Donation is not subject to the documentary stamp tax under Section 196 of the Tax Code of 1997 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
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