Revocation of Donation - Not Subject to Tax

March 29, 1990 BIR RULING NO. 039-90 91 000-00 039-90 S i r : This refers to your letters dated January 15 and 23, 1990 stating that you are trying to register with the Register of Deeds of the City of Manila a document entitled "Revocation of Donation" executed by and among the heirs of the donor, Mrs. Paz M. Ylagan, et al., on May 15, 1989; that the revocation of the donation was due to the violation by the donee of the conditions for the donation and the deed bears the conformity of the donee to the revocation of the donation; that the property subject of the deed of revocation is covered by TCT No. 162896 situated at 1431 P. Guevarra St., San Lazaro, Sta. Cruz, Manila; that the Register of Deeds of the City of Manila is requiring you to present a certification that no tax is collectible on the said "Revocation of Donation"; that although the Legal Branch of Region 4-A has verbally informed you that there is no tax collectible on the said deed, it does not want to issue a certification to that effect for the reason that insofar as they are concerned, they have yet no precedent on the matter; and that on the other hand, the Registry of Deeds of Manila does not want to register the deed of revocation without the required certification. Based on the foregoing representations, and now request a ruling as to whether or not the aforesaid revocation of donation is subject to tax. In reply, please be informed that Title III, Chapter 2 of the Tax Code, as amended, does not impose any tax on revocation of donation. Accordingly, the Deed of Revocation of Donation executed by and among Messrs. Ricardo M. Ylagan, Jorge M. Ylagan, Mesdames Paz A. Mapua-Ylagan and Lourdes M. Ylagan on May 15, 1989 is not subject to tax imposed under Title III, Chapter 2 of the Tax Code, as amended. However, the said deed is subject to the documentary stamp tax imposed under Section 188 of the Tax Code, as amended. cdtech Very truly yours, (SGD.) JOSE U. ONG Commissioner