BIR Ruling No. 237-83

December 28, 1983 BIR RULING NO. 237-83 Gentlemen : This refers to your letter dated March 1, 1982 requesting exemption from the payment of the gift tax on the donations to the Roman Catholic Archbishop of Manila by (1) The Philippine American Life Insurance Company of a parcel of land covered by Transfer Certificate of Title No. 124614; and (2) Mrs. Liceria B. Soriano of a parcel of land covered by Transfer Certificate of Title No. 277408 both of the Register of Deeds of Quezon City, by virtue of Deeds of Donations executed of June 16, 1967 and December 17, 1981, respectively. It appears that the donee is a religious corporation duly organized and existing under the laws of the Philippines. In reply, please be informed that the donation of Lot 1 covered by TCT No. 124614 made in favor of the Roman Catholic Archbishop of Manila by the Philippine American Life Insurance Company on June 16, 1967 is subject to donor's and donee's gift taxes prescribed by Section 109 and 110 of the Tax Code before their amendment by P.D. No. 69 on January 1, 1973. Although the donee is a religious corporation, since the donation was made on June 16, 1967, this donation is subject to gift taxes. (Lladoc vs. Commissioner, G.R. No. L-19201, June 16, 1965) It may be stated that donations in favor of religious corporation were exempted from the gift tax only upon the promulgation of P.D. No. 69. However, the donation of Lots 2-A covered by TCT No. 277408 by Miss Liceria B. Soriano on December 17, 1981 in favor of the Roman Catholic Archbishop of Manila, a religious corporation sole, is exempt from the donor's tax pursuant to Section 123 (a) (3) of the Tax Code of 1977, as amended, subject to the condition that not more than 30% of said gift shall be used by the donee for administration purposes. cd Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue