Taxability of Donations of Park and Water System to Local Governments or to Homeowners Associations

February 21, 1985 BIR RULING NO. 021-85 123 (a) (2) 000-00 021-85 Gentlemen : This refers to your letter dated July 19, 1984 requesting a ruling as to whether donation of parks, playground and/or open space and water system to local governments or to the homeowners association of your subdivision is subject to donor's tax. In reply, I have the honor to inform you that donations to political subdivision of the National Government is exempt from the payment of the donor's tax pursuant to Section 123 (a)(2) of the National Internal Revenue Code, as amended. However, donations to be made in favor of the homeowners associations is subject to donor's tax, under Section 121 of the Tax Code as amended. cdtech Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner