Exemption from Donor's Gift Tax

December 27, 1979 BIR RULING NO. 141-79 Exemption from donor's gift tax This refers to your letters dated February 8 and June 1, 1979 requesting in behalf of your client, The Thousand Buddha Temple, Inc. exemption from the payment of tax on the importation of two (2) Buddha statues which will be donated from abroad by the Chin Yin Lotus Association of Hongkong for the use of your client. It is represented that the Thousand Buddha Temple, Inc. is a non-stock, non-profit religious corporation duly registered with the Securities & Exchange Commission, with office and temple address at 15 Don Pepe St., Sta. Mesa Heights, Quezon City; that it was organized primarily to propagate the Buddhist religion and to promote the spiritual welfare of its followers; that it derives its income from voluntary contributions and donations of its members and benefactors; and that no part of its income inures to the benefit of its members or other individuals. In reply, I have the honor to inform you that since as represented, the recipient or donee is a non-profit religious organization, the aforesaid donation is exempt from the donor's tax pursuant to Section 123(a)(3) of the Tax Code of 1977, as amended. However, the Buddha statues are subject to the 10% compensating tax pursuant to Section 204 of the Tax Code, in relation to Section 199 of the same Code. aisa dc