Exemption of Donation of a Parcel of Land from Donor's Tax

May 14, 1990 BIR RULING NO. 078-90 94 (a) (3) 220-87 078-90 Gentlemen : This refers to your letters dated November 6, 1989 and January 10, 1990 requesting in behalf of your client, Sternberg-Hackett Foundation, Inc. (SHFI), a ruling confirming your opinion that the proposed donation of a parcel of land situated at Quezon City covered by TCT No. 137392 in favor of your abovenamed client by Mrs. Katherine Sternberg is exempt from donor's tax pursuant to Section 94 of the Tax Code, as amended. cdta It is represented that Mrs. Katherine Sternberg is an American citizen and a permanent resident of the Philippines; that she is a member of the Board of Trustees of SHFI and currently is its chairperson; that she wishes to donate a parcel of land situated at Quezon City covered by TCT No. 137392 to said foundation; that SHFJ, is a non-stock, non-profit corporation duly organized and existing under Philippine Laws; that it was organized to undertake programs for assisting the handicapped members of the community; that their programs involve offering for free or on a pure cost reimbursement basis training to physically handicapped persons in such livelihood pursuits such as cultivating ornamental flowering plants, handpainting of ceramics items, hand embroidering of fabrics such as dress material and table linen and other similar activities; that the program also includes the development of music, clerical and computer arts among the handicapped; that as a non-profit organization, no part of its funds, revenues, income or earnings inures to the personal benefit of its members and trustees; and that it is a non-stock entity, paying no dividends, governed by trustees who receive no compensation and devoting all its income, gifts, donations or other receipts to the accomplishment and promotion of the purposes enumerated in its articles of incorporation. In reply, I have the honor to inform you that since it appears that your client, the prospective donee, is a non-stock, non-profit social welfare foundation, paying no dividends, governed by trustees who receive no compensation and devoting all its income, whether student's fees or gifts, donations, subsidies or other forms of philanthropy to the accomplishment and promotion of the purposes enumerated in its articles of incorporation, your opinion that the proposed donation of a parcel of land situated at Quezon City covered by TCT No. 137392 in its favor by Mrs. Katherine Sternberg is exempt from donor's tax pursuant to Section 94 of the Tax Code, as amended, is hereby confirmed, provided that not more than thirty per centum (30%) of said gift shall be used by your client, as donee, for administration purposes. Very truly yours, (SGD.) JOSE U. ONG Commissioner