Donation of a Parcel of Land

August 9, 1990 BIR RULING NO. 148-90 94 (a) (3) 231-89 148-90 Gentlemen : This refers to your letter dated September 28, 1989 requesting exemption from the donor's tax of the donation made in your favor by Ms. Nerissa Cruz-Tamayo consisting of a parcel of land covered by TCT Nos. 497346 and situated in Taytay, Rizal. aisadc It is represented that the Juan Sumulong Memorial Junior College is a non-stock, non-profit educational institution, paying no dividends, governed by trustees who received no compensation and devoting all its income, whether student's fees, or gifts, donations, subsidies or other forms of philanthropy, to the accomplishment and promotion of the purposes enumerated in its Articles of Incorporation. In reply, please be informed that gifts made in favor of a non-stock, non-profit educational institution within the contemplation of Section 94 (a) (3) of the Tax Code, as amended, are exempt from the donor's tax provided that not more than thirty per centum of said gifts shall be used by such donee for administration purposes. Considering that the donee, Juan Sumulong Memorial Junior College is a non-stock, and non-profit educational institution, the aforementioned donation is exempt from the payment of the donor's tax. Moreover, said Deed of Donation is not subject to the documentary stamp tax imposed by Section 196 of the Tax Code. (Sec. 161, Regulations No. 26 of the Documentary Stamp Tax Regulations) However, said Deed of Donation is subject to the documentary stamp tax of three pesos. (Sec. 188, Tax Code; BIR Ruling No. 013-87) cdta Very truly yours, (SGD.) JOSE U. ONG Commissioner