Tax Exemption of Donations to an Educational Institution

September 21, 1992 BIR RULING NO. 270-92 94 (a) (3) 064-92 270-92 Atty. Fregillana, Jr., D.D. 2nd Flr., Manila Seedling Bank Bldg. Quezon Ave. cor. EDSA Quezon City, Metro Manila S i r : This refers to your letter dated 10 April 1992 requesting exemption under Section 94 (a) (3) of the Tax Code as amended, of the donations of two (2) parcels of land situated in the Barangay of Iruhin, Tagaytay City covered by transfer Certificate of Title Nos. 14324 and 142325, respectively, both of the Register of Deeds for Tagaytay City, made by the COMMUNITY OF BENEDICTINE SISTERS in favor of ST. SCHOLASTICA'S COLLEGE, INC., by virtue of a Deed of Donation executed on 30 March 1992. Investigation conducted by this Office disclosed that the St. Scholastica's College, Inc. is a non-stock, non-profit educational institution duly registered as donee institution under Batas Pambansa Blg. 45, amending Section 29 (h) of the Tax Code, as implemented by BIR-NEDA Regulations Nos. 1-81 and 10-92. In reply, please be informed that inasmuch as the donee is an educational institution, 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 gifts shall be used by the donee for administration purposes. cdta Very truly yours, JOSE U. ONG Commissioner of Internal Revenue