Request for Exemption from Donor's Tax on Cash Donation of P110,000 to the Province of Surigao del Norte

August 6, 1985 BIR RULING NO. 117-85 123-a-2 029-85 117-85 Gentlemen : This refers to your request for exemption from the payment of donor's tax on your cash donation of P110,000 in favor of the province of Surigao del Norte; and the deduction in full from your gross income of said donation. It appears that your donation of P110,000 shall be for the construction of a 2-room "Bagong Lipunan School Building" at Bad-as, Placer, Surigao del Norte, which project has now been included in the National Economic Development Authority's (NEDA) National Priority Plan (NPP) for CY 1985. In reply, please be informed that since the donee is a political subdivision of the Government, the aforementioned donation is exempt from the payment of donor's gift tax pursuant to Section 123(a)(2) of the Tax Code as amended. Moreover, inasmuch as your project whereby the province of Surigao del Norte is the donee institution is now included in NEDA's National Priority Plan for CY 1985, you can claim full deduction with respect to the above donation of P110,000 for income tax purposes. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner