Donation to a Religious Corporation Exempt from Donor's Tax

June 17, 1993 BIR RULING NO. 252-93 DONATION TO A RELIGIOUS CORPORATION EXEMPT FROM DONOR'S TAX 94 (A) (3) 270-92 252-93 Atty. Fregillana, Jr. D.D. 2nd Floor, Manila Seedling Bank Bldg. Quezon Ave. Cor. E. de los Santos Avenue Diliman, Quezon City This refers to your letter dated May 10, 1993 requesting for exemption of the St. Scholastica's College, Inc. from the payment of donor's tax on its donation of Five Million Pesos (P5,000,000.00) in favor of the Community of Benedictine Sisters; and from the documentary stamp tax on the Deed of Donation executed for this purposes on April 26, 1992. It is represented that the donor, St. Scholastica's College, Inc. is a non-stock, non-profit educational institution, organized and existing under Philippine laws; that the donee, the Community of Benedictine Sisters is a non-stock, non-profit religious corporation, duly organized and existing under Philippine laws; that the donation of Five Million Pesos (P5,000,000.00) is for the purpose of helping the donee construct and put up a retirement house for the aged and aging Benedictine Sisters. In reply thereto, I have the honor to inform you that since the donee is a religious corporation, the said donation is exempt from donor's tax pursuant to Section 94(a)(3) of the Tax Code, as amended, subject to the condition that not more than thirty per centum (30%) of said gifts shall be used by the donee for administration purposes. Moreover, the Deed of Donation is not subject to the documentary stamp tax pursuant to Section 161 of the Documentary Stamp Tax Regulations. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue