BIR Ruling No. 300-11

August 12, 2011 BIR RULING NO. 300-11 Section 101 (A) (3) of the Tax Code of 1997; BIR Ruling No. 022-10 King Capuchino Tan & Associates 2nd Floor Belman II Building Quezon Avenue cor. Cordillera Street Quezon City Attention: Atty. Bayani L. Chua Gentlemen : This refers to your letter dated September 8, 2009 requesting in behalf of your client International Buddhist Progress Society of Manila, Inc. for exemption from the payment of donor's tax under Section 101 of the Tax Code of 1997. Documents submitted disclosed that a "Deed of Donation with Conditions" dated November 12, 2007 was executed by and between Ludo & Luym Foundation, Inc. (hereinafter "Donor", with TIN 001-705-410-000), and International Buddhist Progress Society of Manila, Inc. (hereinafter "Donee", with TIN 002-924-123-002); that the Donor is a private foundation which has for its purpose the granting of support and providing assistance to educational, scientific, cultural, charitable, and/or philanthropic institutions, or organizations and religious entities; that the Donee is a non-stock, non-profit religious organization, registered with the Securities and Exchange Corporation as a religious corporation, with Certificate of Registration No. 019-2006 as an accredited donee institution issued on March 17, 2006 and good for five (5) years; that the activities of the Donor has long been supported by the Donee through the Chu Un Temple, which the Donee is managing and operating; that the Donor owns a lot located along V. Rama St., Cebu City, as well as the building constructed thereon called the Chu Un Temple, and which the Donee is presently managing for its religious purposes and objectives; and that the Donor is the registered owner of a certain parcel of land located in Cebu City, more particularly described as follows: "Transfer Certificate of Title No. 190129" 'A parcel of land (Lot No. 6046-D, of the subdivision plan, Psd-07-072277, being a portion of Lot 6046 Cebu Cad. 12), situated in the Barangay of Guadalupe, City of Cebu, Island of Cebu . . . containing an area of FOURTEEN THOUSAND ONE HUNDRED FIFTY TWO (14,152) SQUARE METERS, more or less, . . .'" It is further represented that the Donor in support of the Donee as a religious entity, transfers and conveys by way of donation, unto the Donee a portion of Lot No. 6046-D then covered by TCT No. 25032, now TCT No. 190129, including the improvements existing thereon, which donated portion, are clearly reflected in the 12 November 2007 Deed of Donation with Conditions , containing an area of Fourteen Thousand One Hundred Forty Eight (14,148) square meters; and that the DONEE accepts the donation and assures that the donation shall be exclusively utilized for its religious activities, including the upholding and promoting of the purposes and objectives of Buddhism. CSEHcT In reply, please be informed that inasmuch as the Donee is a religious organization and the real property subject of said donation shall be exclusively utilized for its religious activities, the aforesaid donation is exempt from the payment of donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, as amended. Moreover, the "Deed of Donation with Conditions" executed for this purpose is not subject to the documentary stamp tax prescribed under Section 196 of the Tax Code of 1997, as amended. However, the notarial acknowledgment on said deed is subject to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling No. 022-10 dated August 3, 2010) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue