BIR Ruling No. 045-80

October 27, 1980 BIR RULING NO. 045-80 123-a-3 065-79 45-80 De la Salle Brothers, Inc. Central House, La Salle Greenhills Mandaluyong, Metro Manila Attention : Ms . Marieta A . Flores District Administrative Officer Gentlemen: This refers to your letter dated March 17, 1980 requesting opinion on the tax consequences of a proposed donation to you of a parcel of land consisting of 11,073 square meters by De La Salle Greenhills, Inc., an educational institution duly organized and existing under Philippine laws. It is represented that the purpose for which that corporation is established is to administer, to direct and to coordinate the organization of the Brothers of the Christian Schools who operates educational institutions for the benefit of the Filipino youth, in the carrying out of which, you operate and staff a school and various centers in the Philippines, in order to supply and train religious personnel for all the De La Salle organizations in the Philippines, among others. It further appears that you are governed by trustees who receive no compensation, paying no dividend and devoting all your income to the accomplishment of promotion and furtherance of the purposes and activities enumerated in your Articles of Incorporation. On September 28, 1970, this Office ruled that as a religious, educational institution, no part of the net income of which inures to the benefit of any private stockholder or individual you are exempt from income tax and the filing of income tax return. In reply, please be informed that since you are a non-profit educational and religious institution, the proposed donation to you of a 11,073 square meter land by De La Salle Greenhills, Inc. shall be exempt from 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 to be used for administration purposes. cdti Very truly yours, ROMULO M. VILLA Acting Commissioner