BIR Ruling No. 072-11

March 10, 2011 BIR RULING NO. 072-11 Secs. 101 (A) (3), 196 NIRC; BIR Ruling No. 314-87; BIR Ruling No. DA-120-07 Rev. Fr. Margarito R. Gonzaga P-2 Brgy. San Isidro, Tagbilaran City, Bohol Rev. Fr. Gonzaga : This refers to your request for exemption from the payment of donor's tax relative to your donation in favor of PACEM International Foundation, Inc. ("PACEM") , as indorsed by Revenue Region No. 13-Cebu City dated October 19, 2009 and received by this Division on November 10, 2009. HSaEAD Documents submitted disclosed that you, with Taxpayer Identification No. 147-218-930-000, are the registered owner of a parcel of land covered by Transfer Certificate No. 16704 located in Brgy. Biabas, Ubay, Bohol and Tax Declaration No. 2003-45-005-00373; that the property has been certified by the Municipal Assessor as having no improvement existing thereon; that on 25 August 2009, you donated the aforementioned property to PACEM with Taxpayer Identification No. 225-459-624-000, registered with the Securities and Exchange Commission under SEC Reg. No. 92000446 dated January 31, 1992; that PACEM is a non-stock, non-profit corporation organized for religious and charitable purposes under Section 30 (E) of the Tax Code of 1997 for which it was issued BIR Ruling No. S-30-051-2001 dated June 7, 2001; that on 25 August 2009, that a Deed of Donation Intervivos was executed by you in favor of PACEM as represented by Rev. Fr. Edgar E. Boglosa, who accepted the donation; and that in support of your request, you have completely submitted the following documents on September 14, 2010: 1) Duplicate original of the Deed of Donation; 2) Photocopy of TCT No. 16704; 3) Duplicate original of the Property Tax Declaration; 4) Donor's tax return; 5) Photocopy of an Affidavit of No Improvements; 6) BIR Certificate of Registration of PACEM; 7) Audited Financial Statements of PACEM for 2005, 2007 & 2008; 8) Photocopy of BIR Ruling No. S-30-051-2001. In reply, please be informed that inasmuch as the donee is a non-stock, non-profit corporation organized for religious and charitable purposes, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, subject to the condition that not more than 30% of said gift shall be used by the donee for administration purposes. (BIR Ruling No. 314-87 dated October 12, 1987; BIR Ruling No. DA-120-07 dated February 23, 2007) Moreover, the Deed of Donation is not subject to the documentary stamp tax prescribed under Section 196 of the Tax Code of 1997, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the same Tax Code. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained 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