Exemption from Donor's Tax of the Donation of P280,000.00 Made in Favor of a Charitable and Social Welfare Organization

February 24, 1992 BIR RULING NO. 064-92 94 (a) (3) 145-91 064-92 St. Louis Silvercrafts, Inc. Baguio City Attention: Sr . Consuelo Aranda Treasurer Gentlemen : This refers to your letter dated December 6, 1991 requesting exemption from the payment of donor's tax on the donation of Two Hundred Eighty Thousand Pesos (P280,000.00) you made in favor of the Pag-asa Human Development Foundation, Inc. by virtue of a Deed of Donation executed on November 27, 1991. It appears that the Pag-asa Human Development Foundation, Inc. is a non-stock, non-profit charitable and social welfare organization duly registered as donee institution under Batas Pambansa Blg. 45, amending Section 29(h) of the Tax Code, as implemented by BIR-NEDA Regulations No. 1-81 as amended by Revenue Regulations Nos. 1-82 and 10-82. In reply, please be informed that inasmuch as the donee is a charitable and social welfare organization, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 94 of the Tax Code, as amended, subject to the condition that not more than 30% of said gift shall be used by the donee for administration purposes. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue