Exemption from Donor's Gift Tax
BIR Ruling No. 142-79 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Dec 27, 1979
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December 27, 1979 BIR RULING NO. 142-79 Exemption from donor's gift tax This refers to your letter dated April 25, 1979 requesting exemption from the payment of the gift tax on donations, contributions, and gifts made in your favor. It appears that the donee, Chinese Artists' Guild Foundation, Inc. is a non-stock, cultural corporation duly organized and existing under the laws of the Philippines, that it is a non-profit entity, paying no dividends governed by trustees who receive no compensation, and during voting all its income as well as gifts and donations to the accomplishment and promotion of the purposes enumerated in its articles of Incorporation. In reply, I have the honor to inform you that since the foundation is a cultural corporation, donations made in its favor are exempt from the donor's gift tax pursuant to Section 123(a)(3) of the Tax Code of 1977, as amended, subject to the condition that not more than 30% of said gifts shall be used by the donee foundation for administration purposes.
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