Exemption from Gift Tax

June 21, 1979 BIR RULING NO. 047-79 Exemption from gift tax This refers to your letter dated July 28, 1979 to the Honorable, the Minister of Finance, Manila relative to the contemplated donation in your favor by the Chemical Industries of the Philippines, Inc., of one (1) unit of NCR series 500 complete with seven (7) component parts and accessories in line with your students, especially in computer technology. In reply thereto, I have the honor to inform you that the above donation is exempt from the gift tax and that, for income tax purposes, the fair market value thereof is deductible in full from the gross income of the donor, pursuant to Presidential Decree No. 1437 promulgated on June 10, 1978 prescribing among others, the powers of governing boards of chartered state universities and colleges, one of which is that College. Section 3(c) of the said Decree provides: "SEC. 3(c) To import duty-free essential commodities and materials for advanced educational or technological programs as an exception to existing laws, provided such commodities or materials are not available locally; and to receive in trust legacies, gifts, and donations of REAL and personal property of all kinds , to administer the same for the benefit of the university or college or for aid to any student in accordance with the directions and instructions of the donor, and in default thereof, in such manner as the governing boards may in their discretion determine. Such donations shall be exempt from all taxes and shall be considered as deductible items from the income tax of the donors . (Emphasis ours). casia