BIR Ruling No. 048-10

September 1, 2010 BIR RULING NO. 048-10 Section 101 (A) (2), Tax Code of 1997, as amended; BIR Ruling No. 101-80; BIR Ruling No. 216-90; BIR Ruling No. 181-91; BIR Ruling No. DA-481-98; BIR Ruling No. DA-181-99 Bureau of Animal Industry Diliman, Quezon City Attention: Mr. Davinio P. Catbagan, DVM Officer-In-Charge Gentlemen : This refers to your letter dated August 12, 2009, requesting for exemption from the payment of donor's tax under Section 101 of the Tax Code of 1997. Documents submitted disclosed that the Bureau of Animal Industry (BAI) is a government agency recognized under the laws of the Republic of the Philippines; that BAI is under the Department of Agriculture which operates a training, development and research center for meat technology located at A. Fernando St., Marulas, Valenzuela City, also known as the Animal Products Development Center; that Fibrisol Service Australia Pty Ltd. (Donor), is a company duly organized and existing under the laws of Australia with address at 53-59 Sunmore Close, Heatherton, 3202, Victoria, Australia; that the Donor is an entity engaged in the manufacture of various goods and being in possession of a spare Pickle Injector; and that the Donor offered to donate one (1) unit of Pickle Injector to BAI and the latter accepted the donation. In reply, please be informed that inasmuch as the donee is a government agency, the aforesaid donation is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997. aICHEc Moreover, the Deed of Donation executed for the purpose is not subject to the documentary stamp tax. However, the notarial acknowledgment on said deed is subject to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling No. 101-80 dated July 23, 1980; 216-90 dated November 21, 1990; 081-91 dated May 14, 1991; DA-481-98 dated November 9, 1998 and DA-181-99 dated March 23, 1999) However, there shall be levied, assessed and collected on the said donation a value-added tax equivalent to twelve percent (12%) based on the total value used by the Bureau of Customs in determining tariff and customs duties, pursuant to Section 107 (A) of the Tax Code of 1997. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed 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