BIR Ruling No. 073-10

September 15, 2010 BIR RULING NO. 073-10 Sec. 101 (A) (2); BIR Ruling No. [DA-(LGU-002) 228-08] Office of the Municipal Mayor Municipality of Pamplona Province of Camarines Sur Attention: Hon. Gemino A. Imperial Municipal Mayor Gentlemen : This refers to your letters dated February 22, 2010 and August 2, 2010 stating that SB Resolution No. 2010-005, entitled: "Resolution Requesting the Honorable Kim S. Jacinto-Henares, Commissioner, Bureau of Internal Revenue, Central Office, Quezon City, to Exempt the Municipality of Pamplona, Camarines Sur from paying Donor's Tax and other Tax Clearances relative to the Donation of five (5) hectares of land, covered by TCT No. 34459 at Sitio Lunad Poblacion, Pamplona, Camarines Sur which was executed by Atty. Wilfredo Avila, represented through Special Power of Attorney, by Mr. Armando Romualdez, in favor of the Municipal Government of Pamplona, Camarines Sur for the purpose of establishing a resettlement site of a socialized housing projects of qualified recipients of the Municipality, in accordance with Section 101 (2) of the National Internal Revenue Code of 1997." SAHaTc Based on the foregoing, you now request for an opinion that the donation of the aforesaid parcels of land by Atty. Wilfredo Avila to the Municipality of Pamplona, Camarines Sur is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997. In reply thereto, please be informed that since the donee is a political subdivision of the Government, the aforementioned donation of the above-mentioned property is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997. (BIR Ruling No. [DA-(LGU-002) 228-08] dated September 16, 2008) Moreover, the aforesaid Deed of Donation is not subject to the documentary stamp tax prescribed in Section 196 of said Code but only to the documentary stamp tax of P15.00 on certification under Section 188, supra . 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