BIR Ruling No. 107-13

March 21, 2013 BIR RULING NO. 107-13 Sections 101 (A) (3) 196 and 188 of the Tax Code of 1997, as amended; BIR Ruling No. 330-11; and BIR Ruling No. 022-10 Cebu Bible Baptist Church, Inc. 55 Katipunan Street, Cebu City, Philippines Attention: Dr. Armie F. Jesalva Pastor Gentlemen : This refers to your letters dated 25 November 2010 and 21 May 2012, requesting for the issuance of a confirmatory ruling to the effect that the donation of Mr. Daniel J. Gloria of two parcels of land to your client is exempt from donor's tax under Section 101 (A) (3) of the Tax Code of 1997, as amended. It is represented that Cebu Bible Baptist Church, Inc. is a religious organization duly registered with the Securities and Exchange Commission (SEC) under SEC Registration No. 51625 with principal address at 55 Katipunan Street, Cebu City, Philippines. On the other hand, Daniel J. Gloria is a Filipino citizen and the registered owner of two parcels of land described as follows: Property TCT No. Description Location Area 1. Land T-107175 Lot 1016-D-8-F, Poblacion, Municipality 616 sq.m. of subdivision of Bogo, Province plan, Psd-07-036440, being a portion of Lot 1016-D-8, Psd-07-01-007917 2. Land T-107194 Lot 1016-D-6-G, Poblacion, Municipality 616 sq.m. of the subdivision of Bogo, Province plan, Psd-07-036440, being a portion of Lot 1016-D-8, Psd-07-01-007917 On 8 November 2010, Daniel J. Gloria executed a Deed of Donation transferring the aforementioned parcels of land in favor of Cebu Bible Baptist Church, Inc. STaCcA In support of your request, you have submitted the following documents, to wit: 1. Certified machine copies of SEC Certificate of Registration, Articles of Incorporation, and By-laws of Cebu Bible Baptist Church, Inc.; 2. Original certified true copies of TCT Nos. T-107175 and T-107194; 3. Original certified true copies of Tax Declaration Nos. 0111 00845 and 0111 00846; and 4. Original/Duplicate copy of Deed of Donation. In reply, please be informed that inasmuch as the Donee is a religious organization, 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 gifts shall be used by the donee for administrative purposes. (BIR Ruling No. 330-11 dated September 1, 2011) Section 185 of Regulations No. 26, otherwise known as the Revised Documentary Stamp Tax Regulations, implementing Title VII of the Tax Code, provides that conveyances of realties not in connection with a sale, to trustees or other persons without consideration are not subject to documentary stamp tax. Accordingly, the deed of donation executed by Mr. Daniel J. Gloria in favor of Cebu Bible Baptist Church, Inc. shall not be subject to the documentary stamp tax prescribed under Section 196 of the Tax Code, as amended, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling No. 022-10 dated August 3, 2010) 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 as null and void. ScAIaT Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue