Donation of Land to Caritas Manila Exempt from Capital Gains Tax

June 24, 1993 BIR RULING NO. 273-93 DONATION OF LAND TO CARITAS MANILA EXEMPT FROM CAPITAL GAINS TAX 94 (a) (3) 301-92 273-93 Caritas Manila, Inc. 2002 Jesus Street Pandacan, Metro Manila This refers to your letter dated October 28, 1992 requesting exemption under Section 94(a) (3) of the Tax Code, as amended, of the donation of a portion of Lot 2653 located at San Francisco de Malabon Estate, Municipality of Gen. Trias, Province of Cavite, covered by Transfer Certificate of Title No. 33404 of the Register of Deeds of Cavite in favor of Caritas Manila, Inc. by virtue of a Deed of Donation executed on April 21, 1989. Investigation conducted by this Office disclosed that Caritas Manila, Inc. is a non-stock, non-profit charitable institution duly registered as a 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 1-82. In reply, please be informed that inasmuch as the donee is a charitable 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. Moreover, the aforesaid Deed of Donation is not subject to documentary stamp tax prescribed under Section 196 of the Tax Code, as amended, but only to the documentary stamp tax of P3.00 imposed under Section 188 of the same Code. cdtech LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue