BIR Ruling No. 124-13

March 25, 2013 BIR RULING NO. 124-13 Sec. 101 (A) (2) of the Tax Code of 1997; BIR Ruling No. 175-11 Erwin P. Alparaque Acting City Administrator Office of the City Mayor City of Davao Sir : This refers to your letter dated April 19, 2012, duly indorsed by Revenue Region No. 19 Davao City requesting exemption from the payment of donor's tax on the donation of Shelter Development Cooperative to the City Government of Davao. SIcEHD It is represented that Shelter Development Cooperative, a cooperative duly organized and existing under the laws of the Philippines is the owner of a parcels of land located at Centennial Village 1, Brgy. Ula, Tugbok, Davao City described as Road Lots, Parks & Playgrounds and a Community Facilities, issued by the Registry of Deeds for the Davao City, particularly described as follows: T-308526 "A Parcel of land of the subd. project (Road Lot 1, of the subd. plan Psd-11-062835, being a portion of Lot 181, Pcs-3076) . . . containing an area of One Thousand Seven Hundred Seven square meters (1,707 sq.m.)" "A Parcel of land of the subd. project (Road Lot 2, of the subd. plan Psd-11-062835, being a portion of Lot 181, Pcs-3076) . . . containing an area of One Thousand Nine Hundred Four square meters (1,904 sq.m.)" "A Parcel of land of the subd. project (Road Lot 3, of the subd. plan Psd-11-062835, being a portion of Lot 181, Pcs-3076) . . . containing an area of One Thousand Eight Hundred Twenty Eight square meters (1,828 sq.m.)" T-308459 "A Parcel of land of the subd. project (Lot 11, Blk. 2, Parks & Playground of the subd. plan Psd-11-062835, being a portion of Lot 181, Pcs-3076) . . . containing an area of Six Hundred Thirty Three square meters (633 sq.m.)" T-308471 "A Parcel of land of the subd. project (Lot 23, Blk. 2, Community Facilities of the subd. plan Psd-11-062835, being a portion of Lot 181, Pcs-3076) . . . containing an area of One Hundred Ninety Seven square meters (197 sq.m.)" that on the other hand, City of Davao, is a local government unit created by law, organized and existing under the laws of the Republic of the Philippines; and that on May 20, 2008, a Deed of Donation was executed whereby Shelter Development Cooperative transferred and conveyed the above-mentioned subject properties to the City of Davao. In reply, please be informed that under Section 101 (A) (2) of the Tax Code of 1997, as amended, gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the Government are exempt from donor's tax. Considering that the above donation of the above-mentioned parcels of land was made by Shelter Development Cooperative in favor of City of Davao, a political subdivision of the Government, said donation, therefore, is exempt from donor's tax. (BIR Ruling No. 175-11 dated May 27, 2011) 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 null and void. cASIED Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue