Donation of Parcel of Land to LRTA Exempt from Donor's Tax

February 5, 2001 BIR RULING NO. 003-01 101 (A) (2) Mr . Rodrigo Camelo-Ong 38 Talayan St., Talayan Village, Quezon City S i r : This refers to your letter dated October 13, 2000 requesting for exemption from the payment of donor's tax relative to the donation of a parcel of land you made in favor of Light Rail Transit Authority (LRTA) on the ground that the said donation will redound to the benefit and best interest of the public, coupled with the fact that LRTA-DOTC is a duly constituted agency-department of the government of the Republic of the Philippines. Documents submitted disclosed that on July 12, 1990, a Deed of Donation and Acceptance was executed by and between you as Donor and LRTA as Donee pertaining to your parcel of land situated at Rizal Avenue Extension, Caloocan City covered by Transfer Certificate of Title No. 26135 issued by the Registry of Deeds for the City of Caloocan with an area of 141 square meters; that 114.20 square meters of the subject property has been segregated by a Geodetic Engineer for the construction of LRT's stairway at the North Terminal; that the Donee is empowered under Executive Order No. 603 as amended to receive donations, gifts, devises, grant, or property; that under E.O. No. 603, LRTA shall be attached to the Ministry of Transportation and Communications; and that under Article 6, Section 15 of the same Executive Order, LRTA shall be fully subsidized by the Government and its authorized capital stock shall be fully subscribed by the Republic of the Philippines. In reply, please be informed that since the donee, the LRTA is an entity created under Executive Order No. 603 and is attached to a Government agency, which is the Department of Transportation and Communications, 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 National Internal Revenue Code of 1997. Moreover, the aforesaid Deed of Donation and Acceptance 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 P15.00 on certification under Section 188 of the same Code. (BIR Ruling No. DA-195-97 dated April 28, 1997) 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.) LILIAN B. HEFTI Deputy Commissioner Officer-in-Charge