Donation to a Religious Corporation is Exempt from Payment of Donor's Gift Tax

September 30, 1987 BIR RULING NO. 307-87 103 150-85 307-87 Gentlemen : This refers to your letter dated August 4, 1986 requesting exemption from the payment of donor's gift tax on the donation of two (2) parcels of land covered by Transfer Certificates of Title Nos. 126027 and 99324 of the Registry of Deeds of Calamba, Laguna, made by the Calauan Christian Reformed Church, Inc. in your favor. It appears that the donee is a religious corporation duly organized and existing under the laws of the Philippines. In reply, I have the honor to inform you that since the donee is a religious corporation, the donation is exempt from the payment of donor's gift tax pursuant to Section 103 of the Tax Code, as amended. adc However, the exemption from the donor's gift tax is subject to the condition that not more than 30% of the said gifts shall be used by the donee for administration purposes. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner