BIR Ruling No. 022-10

August 3, 2010 BIR RULING NO. 022-10 Section 101 (A) (3); BIR Ruling No. DA-028-98 The Philippine Foundation of Blessed Mary Mother of the Poor, Inc. 22 Don Ramon Santos St., Phase 6-A BF Homes, Paraaque City Attention: Antonio P. Tambunting, Jr. Trustee-Treasurer Gentlemen : This refers to your letter dated July 19, 2010 requesting an exemption from the payment of donor's tax prescribed under Section 101 (A) (3) of the Tax Code of 1997. CaESTA It is represented that San Miguel Properties, Inc. will execute a Deed of Donation over a parcel of land in favor of The Philippine Foundation of Blessed Mary Mother of the Poor, Inc. a non-stock, non-profit religious organization. The subject real property, consisting of thirty-three hectares, is covered by Transfer Certificate of Title No. T-12401 and situated in the Municipality of Alfonso, Cavite. In reply, please be informed that inasmuch as the donee is a religious organization, the aforementioned proposed donation is exempt from the payment of donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, subject to the condition that not more than thirty percent (30%) of said gift shall be used for administration purposes. Section 185 of Regulations No. 26, otherwise known as the Revised Documentary Stamp Tax Regulations, implementing Title VII of the Tax Code, provides that conveyances of realties not in connection with a sale, to trustees or other persons without consideration are not taxable. Accordingly, the deed of donation to be executed by San Miguel Properties, Inc. in favor of the Foundation shall not be subject to the documentary stamp tax prescribed under Section 196 of the Tax Code, as amended, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997 (BIR Ruling No. DA-28-98 dated January 29, 1998). As a condition to the issuance of the Certificate Authorizing Registration, you are hereby required to submit to the concerned Revenue District Office and the Law Division a certified true copy of the duly executed Deed of Donation and other pertinent documents prescribed under Revenue Memorandum Circular No. 14-01. 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. caDTSE Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue