BIR Ruling No. 040-12

February 8, 2012 BIR RULING NO. 040-12 Section 101 (A) (3) of the Tax Code of 1997, as amended; 000-00 Oblates of Notre Dame Sinsuat Avenue, Rosary Heights P.O. Box 667, 9600 Cotabato City Attention: Sr. Nida C. Macanila, OND General Treasurer Gentlemen : This refers to your letter dated February 3, 2010 requesting for exemption from the payment of taxes relative to the donations made to the Oblates of Notre Dame. TDCAHE It appears that the Oblates of Notre Dame is a non-stock, non-profit religious organization registered with the Securities and Exchange Commission under SEC Registration No. 15542 dated June 30, 1959; and that in consideration of the liberality of Carmelita A. Zaldivar (donor) to the Oblates of Notre Dame (donee),the parties executed a Deed of Donation dated February 22, 2010 over various parcels of land with TCT Nos. T-121926, T-121925, T-121924 and T-121923 issued by the Registry of Deeds for General Santos City. In reply, please be informed that Section 101 (A) (3) of the Tax Code of 1997, as amended, provides: "SEC. 101. EXEMPTION OF CERTAIN GIFTS. The following gifts or donations shall be exempt from the tax provided for in this Chapter: (A) In the Case of Gifts Made by a Resident. (1) ... (2) ... (3) Gifts in favor of educational and/or charitable, religious, cultural or social welfare corporation, institution, accredited non-government organization, trust or philanthropic organization or research institution or organization: ..." AECDHS Accordingly, inasmuch as the donee is a religious organization, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, as amended, subject to the condition that not more than thirty percent (30%) of said gift shall be used for administration purposes. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue