Donation to a Religious Corporation is Exempt from Payment of Donor's Tax

April 2, 1991 BIR RULING NO. 053-91 94 (a) (3) 182-90 053-91 Gentlemen : This refers to your letter dated February 4, 1991 requesting, in behalf of your client, Commissary Provincial, Chief Priest, Or Head Of The Calced Carmelites, Inc., exemption from the payment of donor's tax of the donation of a parcel of land situated in Paco, Manila, covered by TCT No. 128188, executed by Social Impact Foundation, Inc. in favor of Provincial Commissary, Chief Priest, Or Head Of The Calced Carmelites, Inc. by virtue of a Deed of Absolute Donation dated August 29, 1985. Investigation conducted by this Office disclosed that the donee, Commissary Provincial, Chief Priest, Or Head Of The Calced Carmelites, Inc. is a religious corporation sole duly authorized and existing under the laws of the Philippines. In reply, I have the honor to inform you that since the donee is a religious corporation sole, the aforementioned donation is exempt from the payment of donor's gift tax pursuant to Section 94 (a) (3) of the Tax Code, as amended. However, the exemption from donor's tax is subject to the condition that no more than 30% of the said gift shall be used by the donee for administration purposes. cdta Very truly yours, (SGD.) JOSE U. ONG Commissioner