Exemption from Donor's Gift Tax

December 12, 1979 BIR RULING NO. 109-79 Exemption from donor's gift tax This refers to your letter dated January 12, 1979 requesting exemption from the payment of donor's gift tax of the donation of two parcels of land covered by Transfer Certificate of Title Nos. 377841 and N-10052 made by your client, the Tuason Enterprises, Inc., in favor of the Roman Catholic Archbishop of Manila by virtue of a Deed of Donation executed on December 19, 1978. It appears that the donee is a religious corporation duly organized and existing under the laws of the Philippines. In reply, I have the honor to inform you that as the donee is a religious corporation, the aforementioned donation is exempt from the payment of donor's gift tax, pursuant to Section 123(a) (3) of the Tax Code of 1977. However, the exemption from the donor's gift tax is subject to the condition that not more than 30% of said gifts shall be used by the donee for administration purposes. casia