BIR Ruling No. 130-82

April 22, 1982 BIR RULING NO. 130-82 123-a-3 065-79 130-82 Filipino-Sino Taoism Movement, Inc. Lope de Vega cor. Kusang Loob Street M a n i l a Attention: Mr . Johnson Ang Treasurer Gentlemen : This refers to your letter dated February 27, 1980 requesting opinion on whether the voluntary contribution of the disciples or members of your movement for the construction of the annex building of your temple are exempt from donor's (gift) tax and are deductible from the donor's gross income, for income tax purposes. It appears that on March 30, 1979, this Office granted you exemption from income tax in accordance with the provisions of Section 27(e) of the Tax Code of 1977, as amended. In reply, please be informed that since you, as donee, is a religious organization, the aforementioned donations or contributions made in your favor are exempt from the payment of the donor's gift tax, pursuant to Section 123(a)(3) of the Tax Code, as amended. However, the exemption from the donor's gift tax is subject to the condition that not more than 30% of the donation shall be used by the donee for administration purposes. Furthermore, these voluntary contributions or donations shall be deductible to an amount not in excess of 6% of the taxable net income of individual donors of 3% of the taxable net income of corporate contributors, computed without the benefit of said contributions or donations. cdtech Very truly yours, RUBEN B. ANCHETA Acting Commissioner