Exemption from the Payment of Donor's Tax and Documentary Stamp Tax

December 19, 1990 BIR RULING NO. 239-90 94 (a) (3) 490-88 013-87 239-90 S i r : This refers to your letter dated October 26, 1990 requesting for exemption from the payment of donor's tax and documentary stamp tax of the donation made by your client, The Superior Of The Filipino Corporation of Claretian Fathers, Inc. of a parcel of land situated in Barangay Culiat, Quezon City, Metro Manila, covered by TCT No. RT-6553 (366919) in favor of the Superior Of The Religious Of Mary Immaculate Claretian Missionary Sisters, Inc. by virtue of a Deed of Donation executed on September 14, 1990. It appears that the Superior Of The Religious Of Mary Immaculate Claretian Missionary Sisters, Inc. is a religious corporation duly organized and existing under the laws of the Philippines. In reply, please be informed that inasmuch as the donee is a religious corporation, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 94 (a)(3) of the Tax Code, as amended, subject to the condition that not more than 30% of said gift shall be used by the donee for administration purposes. Moreover, the deed of donation is not subject to the documentary stamp tax prescribed by Section 196 of the Tax Code on deed of sale and conveyance of real property since the transfer is gratuitous and has no consideration (Section 161, Regulations No. 26 of the Documentary Stamp Tax Regulations). However, the acknowledgment issued by the notary public is subject to the documentary stamp tax imposed on certificates in the amount of P3.00 pursuant to Section 188 of the same Code. aisadc Very truly yours, (SGD.) VICTOR A. DEOFERIO, JR. Deputy Commissioner