BIR Ruling No. 042-80

October 27, 1980 BIR RULING NO. 042-80 123-a-3 065-79 42-80 Messrs. Bito, Misa & Lozada P.O. Box 781 M a n i l a Attention : Atty . Renato G . Calma Gentlemen: This refers to your letter dated November 15, 1979 seeking confirmation of your opinion that the donation made on January 25, 1977 by your client, Faith Academy, a non-stock, non-profit educational institution, to Christian Education Assistance Foundation, Inc., of three (3) parcels of land in Antipolo and Cainta, Rizal for exclusive use as a place to aid, assist, guide, promote and encourage Christian education is exempt from donor's tax, pursuant to Section 123(a)(3) of the Tax Code of 1977, as amended. It appears that Christian Education Assistance Foundation, Inc., is a non-profit, non-stock educational institution duly organized and existing under the laws of the Philippines, that it is a non-stock entity, paying no dividends, governed by trustees who receive no compensation, and devoting all its income, to the accomplishment, promotion, and furtherance of the purposes and activities enumerated in its Articles of Incorporation. In reply, please be informed that since the donee, Christian Education Assistance Foundation, Inc., in whose favor, your client, Faith Academy, donated three parcels of land is a non-profit educational institution, the said donation is exempt from the payment of donor's (gift) tax, pursuant to Section 123(a)(3) of the Tax Code of 1977, as amended, subject to the condition that not more than 30% of said gifts are used for administration purposes. cdti Very truly yours, ROMULO M. VILLA Acting Commissioner