Gifts Made in Favor of a Non-stock, Non-profit Research Institution are Exempt from Donor's T

November 6, 1991 BIR RULING NO. 227-91 94 (a) (3) 148-90 227-91 Gentlemen : This refers to your letter dated September 19, 1991 requesting in behalf of Carmen Garricho de Agualdo et al., exemption from the donor's tax on the donation they made in your favor on December 21, 1977 of a parcel of land situated in Barrio Tejeros, Municipality of Makati, Province of Rizal (Metro Manila) covered by Original Certificate of Title No. 4487 of the Registry of Deeds of the Province of Rizal. Investigation conducted by this Office disclosed that the Philippine Development Alternatives Foundation, Inc., formerly the Technology Resource Center Foundation, Inc., is a non-stock, non-profit research foundation, paying no dividends, governed by a Board of Trustees who receive no compensation and devoting all its income, whether student's fees, or gifts, donations, subsidies or other forms of philanthropy, to the accomplishment and promotion of the purposes enumerated in its Articles of Incorporation. In reply, please be informed that gifts made in favor of a non-stock, non-profit research institution or foundation 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 of said gifts shall be used by such donee, for administration purposes. Considering that the donee, Philippine Development Alternatives Foundation, Inc. is a non-stock, non-profit research institution, the aforementioned donation is exempt from the payment of the donor's tax. aisadc Moreover, said Deed of Donation is not subject to the documentary stamp tax imposed by Section 196 of the Tax Code. (Sec. 161, Revenue Regulations No. 26). However, said Deed of Donation is subject to documentary stamp tax of three pesos. (Sec. 188, Tax Code, BIR Ruling No. 013-83). Very truly yours, (SGD.) JOSE U. ONG Commissioner