BIR Ruling No. 020-62

January 15, 1962 BIR RULING NO. 020-62 Messrs. Ross, Selph & Carrascoso P. O. Box 781, Manila Gentlemen : Reference is made to your letter dated November 21, 1961, requesting a ruling on the question of whether or not the following donation may be exempt under section 1 of Republic Act 1916. "A duly incorporated religious and charitable society of the State of New York, U. S. A., owns a parcel of land situated in the Philippines. It intends to donate this land to another duly incorporated religious or charitable society. The foreign society also intends to donate a certain sum from its funds deposited in the Philippines to the local society to be used in the construction of a building on the land to be donated by it. This land and building would be devoted and utilized by the local society for certain religious and charitable purposes." In reply, I have the honor to quote hereunder the pertinent provision of General Circular No. 250 which published Republic Act 1916: "The donations contemplating by the Act cover only donations of foreign origin. Donations, therefor, to said duly incorporated or established international civic, religious, or charitable purposes from local sources or origin shall remain subject to the gift taxes." In as much as the land as well as the money to be donated are in the Philippines, the same cannot be exempt under the provisions of Republic Act 1916. LLjur Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue