Taxability of the Donation of a Parcel of Land in Favor of a Religious Institution

May 30, 1994 BIR RULING NO. 108-94 94 (a) (3) 301-92 108-94 The Roman Catholic Archbishop of Manila 121 Arzobispo Street Intramuros, Manila Attention: Msgr . Domingo A . Cirilos, Jr . Treasurer Gentlemen : This refers top your letter dated May 12, 1993 requesting exemption under Section 94(a)(3) of the Tax Code, as amended of the donation made by the spouses Franklin and Remedios Atencio thru their Attorney-in-Fact, Lydia L. Geraldez, of a parcel of land located in Quezon City containing an area of five hundred eighty-one (581) square meters, more or less, covered by Transfer Certificate of Title No. 66655 of the Register of Deeds of Quezon City in favor of the Roman Catholic Archbishop of Manila by virtue of a Deed of Donation executed on May 13, 1993. Documents submitted show that The Roman Catholic Archbishop of Manila is a religious corporation sole for the principal purpose of administering its temporalities. In reply, please be informed that inasmuch as the donee is a religious institution, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 94(a)(3)of the Tax Code, as amended, subject to the condition that not more than 30% of said gift shall be used by the donee for administration purposes. Moreover, the aforesaid Deed of Donation is not subject to the documentary stamp tax prescribed under Section 196 of the Tax Code, as amended, but only to the documentary stamp tax of P3.00 imposed under Section 188 of the same Code. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue