Exemption from Donor's Tax

November 21, 1990 BIR RULING NO. 216-90 94 (a) (2) 000-00 216-90 S i r : This refers to your letter dated July 16, 1990 requesting tax exemption of the donation of one (1) unit of Mitsubishi Model L-300 Ambulance by the Philippine Charity Sweepstakes Office (PCSO) in favor of the Municipality of Las Pias, Metro Manila. cd Documents submitted show that the donated vehicle described as Model L-300 Mitsubishi 5-Door Ambulance, cream white in color, bearing Chassis No. 8825256 and Engine No. 4G62-Dg7342, is one of 207 units of motor vehicles imported by and consigned to PCSO which is covered by a Bill of Lading issued by the Eastern Shipping Lines, Inc. on March 18, 1987. As the compensating tax due on said vehicle appears to have been covered by a certificate of payment issued in March 1987 pursuant to P.D. No. 1177, the remaining issue to be resolved is whether or not the conveyance of the said vehicle to your municipality is subject to donor's tax. In reply, please be informed that pursuant to Section 94 (a)(2) of the Tax Code, 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 said Government is exempt from the donor's gift tax. Such being the case, the donation by PCSO to the Municipality of Las Pias of the aforementioned ambulance vehicle is exempt from the donor's tax. Very truly yours, (SGD.) JOSE U. ONG Commissioner