Grant of Request for Exemption from Donor's Tax of a Donee which is a Non-Profit and Non-Stock Foundation

January 6, 1983 BIR RULING NO. 005-83 S i r : This refers to your letter dated August 9, 1982 requesting exemption from the donor's tax of the donation of 221,688 square meters of agricultural land situated in Barrio Almanza, Las Pias, Metro Manila covered by Transfer Certificate of Title No. 38910, made by Mr. and Mrs. Wilson P. Orfinada in favor of the Doa Josefa Edralin Marcos Foundation, Inc. In reply, I have the honor to inform you that since the donee is a non-profit and non-stock foundation and/or research institution, paying no dividends, governed by trustees who receive no compensation, and devoting all its income, whether student's fees, or gifts, donations, subsidies or other forms of philanthropy, to the accomplishment and promotion of the purposes enumerated in its articles of incorporation, the aforementioned donation is exempt from the payment of donor's tax, provided that not more than thirty per centum (30%) of said gift shall be used by the donee for administration purposes. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue