City of Marikina

September 16, 2008 BIR RULING [DA-(LGU-002) 228-08] DA611-06 City of Marikina 2nd Floor, City Legal Office Sta. Elena, Marikina City Attention: Atty. Nancy Villanueva Teylan Acting City Attorney Gentlemen : This refers to your letter dated August 15, 2008 stating that the Solid Homes, Incorporated is a domestic corporation duly organized and existing under the laws of the Philippines with principal office address at V.V. Soliven Shopping Complex, EDSA, Greenhills, San Juan, Metro Manila; that on the other hand, the City Government of Marikina is a local government unit duly organized under Republic Act (R.A.) No. 7160; that Solid Homes, Incorporated is the registered owner of several parcels of land located in a subdivision project known as Marikina Greenheights Subdivision, Phase I, II, III, IV, V and VI Nangka, Marikina; that on August 7, 2008, a Deed of Donation was executed by the Solid Homes, Incorporated, as the Donor, and City Government of Marikina, as the Donee, the following properties to wit: TCT No. Area (sq. m.) 474429 212 474458 160 474483 160 474507 160 474532 160 474533 80 474602 4305 474624 2508 474625 1795 474826 2700 474827 1519 474828 1375 474829 2055 474830 2871 474831 3858 474632 309 474739 120 474831 1647 474832 630 474833 2480 474834 1382 474836 1759 474837 2648 474839 2093 N-32120 1878 N032167 895 N032168 3454 N-32169 2241 N-32170 120 N-60326 774 N-60298 4 N-60299 4 473638 2086 N-34741 202 N-32100 1929 N-32101 1998 N-32102 2058 N-37243 1226 N-37241 1146 N-37242 1105 N-61206 595 264958 3173 473663 2117 470104 3023 473630 2931 146274 534 N-130818 708 222546 1701 222547 1171 that the above-mentioned parcels of land are designated as road lots and open spaces in said subdivision project and the Donor donates the described real property subject to the conditions set forth in P.D. 1216 and the Donee is willing to accept the said properties subject to the terms and conditions as follows: SHECcT a. It is mutually agreed that the Donee shall bear all the expenses for the transfer of title of the property to its name; b. After the turn-over of the property to the Donee by the Donor the former shall be responsible for the maintenance and development of the donated property into road/streets, to provide and introduce structure for the speedy delivery of basic services and to promote general welfare of the constituents of the Donee; c. The donated property cannot be sold, disposed of, assigned, donated, subdivided to be diverted to other use than that provided for by law and only for the benefits of the residents/homeowners thereat; d. It is understood that if the Donee shall utilize the donated property for purpose other than the intended purpose, all legal requirements must first be complied with by the Donee. Based on the foregoing representations, you now request for an opinion that the donation of the aforesaid parcels of land by Solid Homes, Incorporated to the City of Marikina is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997. In reply thereto, please be informed that since the donee is a political subdivision of the Government, the aforementioned donation of the above-mentioned properties 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 prescribed in Section 196 of said Code but only to the documentary stamp tax of P15.00 on certification under Section 188, supra. 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, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service