BIR Ruling No. 072-12

February 10, 2012 BIR RULING NO. 072-12 Sec. 101 (A) (2) of the Tax Code of 1997; BIR Ruling No. 175-11 San Francisco Institute of Science and Technology San Francisco, Malilipot, Albay Attention: Emmanuel R. Sacayan, CEO VI Chairman, Board of Trustees Gentlemen : This refers to your letter dated November 25, 2010 requesting exemption from the payment of donor's tax on the donation of three (3) units of Honda Motorcycles and two (2) units small engine by the Honda Motors Philippines, Inc. to the San Francisco Institute of Science and Technology. It is represented that Honda Philippines, Inc. a domestic corporation with Tax Identification Number 000-161-299-000, executed two (2) Deeds of Donation in favor of the San Francisco Institute of Science and Technology, an educational institution with Tax Identification Number 004-982-234-000, over three (3) units of Honda Motorcycles and two (2) units of small engine, described as follows: IcAaEH Items Engine No. Motorcycle (Wave Alpha) HC08E-7020357 Motorcycle (TMX 155) KB506058-033081E Motorcycle (ANF100MSPH) KVR00E000012 GX160TQM GCABT-2956563 GCABT-2957092 Tools and Equipment Annex "A" of donation dated June 22, 2010 In reply, please be informed that under Section 101 (A) (2) of the Tax Code of 1997, as amended, gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the Government are exempt from donor's tax. Considering that the above donations were made by Honda Motors Philippines, Inc. in favor of San Francisco Institute of Science and Technology under Technical Education and Skills Development Authority, an agency of the National Government, said donations, therefore, are exempt from donor's tax. (BIR Ruling No. 175-11 dated May 27, 2011) 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