BIR Ruling No. 330-11

September 1, 2011 BIR RULING NO. 330-11 Section 101 (A) (3) of the Tax Code of 1997; BIR Ruling No. 095-10 Catolico Buensuceso Sobrevega & Suganob Law Office Room 207 La Sallete Building Valerio Street Iloilo City Attention: Atty. Mary Jean Quezon-Sobrevega Gentlemen : This refers to your letters dated January 3, 2011 and May 25, 2011 requesting on behalf of your client, Ephraim J. Lujan married to Anelene A. Lujan, for exemption from the payment of donor's tax under Section 101 (A) (3) of the Tax Code of 1997. It is represented that Ephraim J. Lujan married to Anelene A. Lujan with TIN 402-401-672-000 is the absolute and registered owner of three (3) parcels of land located at Barangay Tabuc, Suba, District of Jaro, Iloilo City, covered by TCT No. T-118172 issued by the Registry of Deeds for Iloilo City with an aggregate area of 4,002 square meters; that on the other hand, Evangel Family Church (Iloilo), Inc. is a domestic corporation duly registered with the Securities and Exchange Commission (SEC) under SEC Registration No. CN200526992 with TIN 006-229-587-000; and that on January 2, 2011, a Deed of Donation was executed by Spouses Lujan in favour of Evangel Family Church (Iloilo), Inc. whereby the former transferred to the latter the above-mentioned property together with all the improvements thereon. In support of your request, you have submitted the following documents, to wit: 1. Machine copy of the SEC Registration of the Donee, Evangel Family Church (Iloilo), Inc.; 2. Original Certified true copy of the Articles of Incorporation of the Donee; 3. Original Certified true copy of the Amended Articles of Incorporation of the Donee; 4. Original Certified true copy of the Deed of Donation; 5. Original copy of the Donor's Tax Return; cDCaTS 6. Certified true copy of the Transfer Certificate of Title; 7. Original Copy of the Tax Declaration of Lots 3, 4 & 5; 8. Copy of the TIN of the Donor and Donee; 9. Original Certified true copy of the Latest Audited Financial Statements of the Donee; and 10. Affidavit of the Legal Officer of the Donee attesting to the truth of the representations. In reply thereto, please be informed that inasmuch as the donee is a religious organization, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, subject to the condition that not more than 30% of said gift shall be used by the donee for administration purposes. (BIR Ruling No. 095-10 dated October 6, 2010) Moreover, the deed of donation will not be subject to the documentary stamp tax prescribed under Section 196 of the Tax Code of 1997, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the same Tax Code. 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