BIR Ruling No. 175-11

May 27, 2011 BIR RULING NO. 175-11 Section 101 (A) (2) of the Tax Code of 1997; BIR Ruling No. 062-99; BIR Ruling No. DA-302-2003 Project Management Office-DOTC Laguindingan Airport Development Project Engineers' Compound, Brgy. San Isidro Laguindingan, Misamis Oriental Attention: Ms. Della P. Capicenio Project Manager Gentlemen : This refers to your letters dated February 25, 2010 and June 24, 2010 requesting exemption from the payment of donor's tax on the donation by Ayala Corporation in favor of the Department of Transportation and Communications ("DOTC") of thirty six (36) parcels of land, with an aggregate area of eighty eight and forty four (88.44) hectares and fifty nine (59) parcels of land, with an aggregate area of ninety four and thirty nine (94.39) hectares, affected by the construction of the Laguindingan Airport Development Project ("LADP"), a priority project of the Government located in Laguindingan, Misamis Oriental which is expected to be completed in 2012. aEHAIS In support of your request, you submitted photocopies of the two (2) separate Deeds of Donation with Acceptance dated May 21, 1997 (for donation of the 88.44 hectares) and April 14, 2010 (for the donation of the 94.39 hectares) 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 donations were made by Ayala Corporation in favor of DOTC, an agency of the National Government, said donations, therefore, are exempt from donor's tax. (BIR Ruling Nos. 062-99 dated May 5, 1999, and DA-302-2003 dated September 16, 2003). 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