Request for Exemption under Section 94(a)(3) of the Tax Code, as amended, of the Donation made by Far East Bank & Trust Company of a Portion of a Parcel of Land in Favor of the Christian Educational Assistance Foundation, Inc.

February 3, 1994 BIR RULING NO. 032-94 94 (a) (3) 214-93 032-94 J.P. Villanueva and Associates 8th Floor, Sagittarius Bldg. M.V. dela Costa St. Salcedo Village, Makati MM Gentlemen : This refers to your letter dated July 26, 1993 requesting, in behalf of your client, the Christian Educational Assistance Foundation, Inc., for exemption under Section 94(a)(3) of the Tax Code, as amended, of the donation made by Far East Bank & Trust Company of a portion of a parcel of land located at the corner of Woodpecker Drive and Maya Drive, Valley Golf Subdivision, Antipolo, Rizal covered by Transfer Certificate of Title No. 170256 of the Register of Deeds of Marikina in favor of the Christian Educational Assistance Foundation, Inc. by virtue of a Deed of Donation executed on December 29, 1992. Documents submitted to this Office show that the Christian Educational Assistance Foundation, Inc. is a non-stock, non-profit religious institution duly registered as a donee institution under Batas Pambansa Blg. 45, amending Section 29 (h) of the Tax Code, as implemented by BIR-NEDA Regulations Nos. 1-81 and 10-82. In reply, please be informed that inasmuch as the donee is a religious institution, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 94(a)(3) of the Tax Code, as amended, subject to the condition that not more than 30% of said gift shall be used by the donee for administration purposes. Moreover, the aforesaid Deed of Donation is not subject to documentary stamp tax prescribed under Section 196 of the Tax Code as amended but only to the documentary stamp tax of P3.00 imposed under Section 188 of the same Code. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue