Donation to a Religious Corporation is Exempt from Payment of Donor's Tax

September 19, 1991 BIR RULING NO. 196-91 94 (a) (3) 57-91 196-91 Gentlemen : This refers to your letter dated August 5, 1991 requesting exemption from donor's tax and documentary stamp tax on a donation in your favor by Conservative Baptist Pact, Inc. of a parcel of land containing an area of Seven Hundred Thirty-Three (733) square meters situated in the Municipality of Imus, Province of Cavite, under Transfer Certificate of Title No. T-101010 issued by the Registry of Deeds for the Province of Cavite by virtue of a Deed of Donation executed on February 8, 1989. Investigation conducted by this Office disclosed that Imus Conservative Baptist Church, Inc. is a corporation operated for purely religious purposes duly organized and existing under Philippine Laws and registered with the SEC on March 21, 1975 and that it was granted exemption under Section 26 (e) of the Tax Code as amended on February 8, 1990 by this Bureau. In reply, please be informed that since the donee is a religious corporation the aforementioned donation is exempt from the payment of donor's tax pursuant to Sec. 94 (a) (3) of the Tax Code, as amended, subject to the condition that not more than 30% of said gifts shall be used by the donee for administration purposes. Moreover, said Deed of Donation is not subject to documentary stamp tax imposed by Section 196 of the Tax Code. However, said Deed of Donation is subject to the documentary stamp tax of three pesos. (P3.00). [Sec. 188, Tax Code]. aisadc Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner Officer-in-Charge