Exemption from Donor's Tax

September 13, 1990 BIR RULING NO. 177-90 94 (a) (3) 490-88 177-90 Gentlemen : This refers to your letter dated August 6, 1990 requesting exemption from the payment of donor's tax on the donation you made consisting of a parcel of land covered by TCT No. RT-1570 (1053) situated in Quezon City in favor of Doa Julia Vargas Vda. de Ortigas Foundation, Inc. by virtue of a Deed of Donation executed on July 10, 1990. aisadc It is represented that the Doa Julia Vargas Vda. de Ortigas Foundation, Inc. is a non-stock, non-profit corporation as expressly provided for in its Articles of Incorporation, viz: "That this is a corporation not for gain or individual profit and that no dividend shall be declared or paid to any of its members, and that none of its property, real or personal, shall ever be used or expanded except in carrying into effect the legitimate ends and aims of its being." that the purpose for which the corporation is formed are, among others: to put up and maintain a chapel to service the religious needs of the community; and to put up, operate and maintain a school known as the "Our Lady of Sacred Heart School" in order to promote and support the educational needs of the members of the community. In reply, please be informed that gifts made in favor of an educational and/or charitable, religious, cultural or social welfare corporation, institution, foundation, trust or philanthropic organization or 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 (30%) of said gifts shall be used by such donee for administration purposes. Considering that the donee, Doa Julia Vargas Vda. de Ortigas Foundation, Inc. is a non-stock, and non-profit religious and educational institution the aforementioned donation is exempt from the payment of the donor's tax. cdtech Very truly yours, (SGD.) JOSE U. ONG Commissioner