BIR Ruling No. 038-12

February 1, 2012 BIR RULING NO. 038-12 Sections 101 (A) (2), 196 and 188 of the Tax Code of 1997, as amended; BIR Ruling No. 074-10 dated September 15, 2010 Office of the Mayor Municipality of Mogpog Province of Marinduque Attention: Hon. Mayor Senen M. Livelo, Jr. Municipal Mayor Gentlemen : This refers to your letter dated 6 September 2011 requesting for exemption from payment of donor's tax under Section 101 of the National Internal Revenue Code of 1997, as amended. It is represented that Mr. Howard Menorca Enriquez donated three (3) parcels of land covered by TCT No. T-7431, TCT No. T-7429 and TCT No. T-7426 to the Municipality of Mogpog which you duly represented by virtue of Municipal Resolution No. 178-2010. The three (3) parcels of land have a total area of Eight Hundred Twenty Seven (827) square meters. In support of your request, you have submitted the following documents: 1. Duly accomplished BIR Form No. 1800; 2. Duly notarized "Kasulatan ng Pagkaloob" ; 3. Land Registration Authority CCV Form of TCT Nos. T-7426, T-7431 and T-7429; 4. Certified True Copies of Tax Declaration Nos. 04-19896, 04-19893 and 04-19898; and IEaHSD 5. Certificate of No Improvements in Land Holding of Tax Declaration Nos. 04-19896, 04-19893 and 04-19898. In reply, please be informed that since the donee is a political subdivision of the Government, the aforementioned donation of parcels of land is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997, as amended. (BIR Ruling No. 074-10 dated September 15, 2010) Moreover, the aforesaid Kasulatan ng Pagkaloob is not subject to documentary stamp tax under Section 196 of the Tax Code of 1997, as amended, but only to the documentary stamp tax of P15.00 on certification under Section 188 of the same Code. (BIR Ruling No. 074-10 dated September 15, 2010) 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 as null and void. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue