BIR Ruling No. 152-12

February 28, 2012 BIR RULING NO. 152-12 Sec. 101 (A) (2) of the Tax Code of 1997; BIR Ruling No. 175-11 Ngileb Elementary School Brgy. Ngileb, Alfonso Lista, Ifugao Attention: Melanie W. Ag-Agiw ESHT-III School Head Gentlemen : This refers to your letter dated August 23, 2011 requesting exemption for a parcel of lot donated by Fernando Dubadob to Ngileb Elementary School. It is represented that Fernando Dubadob married to Michaela Dubadob is the owner of a parcel of land located at Ngileb, Alfonso Lista, Ifugao covered by OCT No. P-8772 issued by the Registry of Deeds for Ifugao and containing an area of 14,599 square meters; that on the other hand, Ngileb Elementary School is an educational institution under the Department of Education, Cordillera Administrative Region, Division of Ifugao, Alfonso Lista District I; and that on April 29, 2009, a Deed of Donation was executed by Fernando Dubadob married to Michaela Dubadob, as Donor, and Ngileb Elementary School as Donee, over the abovementioned parcel of land, particularly described as follows: "Beginning at a point marked "1" of Lot 1, Block-1, Csd-CAR-002403-D, eq. to Lot 12389, Pls-60 (Port.) of Lot 482, Pls-60 being N 19-10 E., 6,535.56 meters from BLLM No. 1, Pls-60 to Corner 1, thence: N 70-26 E., 185.50 m. to point 2; S 26-51 E., 49.63 m. to point 3; S 22-37 E., 40.00 m. to point 4; S 68-01 W., 19.50 m. to point 5; S 67-07 W., 106.20 m. to point 6; N-55-00 W., 118.00 m. to point of beginning. Containing an area of FOURTEEN THOUSAND FIVE HUNDRED NINETY NINE (14,599) square meters. All corners are marked by P.S. cyl. Conc. Mons. 50 x 40 cms. Bounded on the North along line 1-2 by lot 483, Pls-60; on the East along line 2-3 by Lot 7; and along line 3-4 by Lot 2; on the Southeast along lines 4-5-6 by road; all under Block-1, Csd-CAR-002403-D; and on the Southwest along line 6-1 by Lot F-2-06-000940-D." 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 was made by Fernando Dubadob in favor of Ngileb Elementary School which is under the Department of Education, an agency of the National 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. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue