Donation to Church - Not Subject to Tax

August 12, 1993 BIR RULING NO. 353-93 DONATION TO CHURCH NOT SUBJECT TO TAX 94 (a) (3) 21 (e) 301-92 353-93 J.C. Tolentino & Associates Law Office Ground Floor, C.C. Castro International Bldg. No. 38 Timog Avenue, Quezon City Attention: Mr . Jose C . Tolentino This refers to your letter dated June 24, 1993 requesting for exemption under Section 94(a)(3) of the Tax Code, as amended, of the donation made by the Prior Provincial of the Agustinian Province of Santo Nio de Cebu Phils., Inc. of five (5) parcels of land located in Mandurriao, Iloilo City and covered by Transfer Certificates of Title Nos. T-81050, T-81051, T-88010, T-88011 and T-88012 of the Registry of Deeds of Iloilo City in favor of your client, Servants of Jesus and Mary, Inc. pursuant to a Deed of Donation executed on July 18, 1991. cdtech Documentary evidence submitted to this Office disclosed that the Servants of Jesus and Mary, Inc. is a non-stock, non-profit religious 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 10-82. In reply, please be informed that inasmuch as the donee is a religious institution, the aforementioned donation is exempt from 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 aforementioned Deed of Donation is not subject to documentary stamp tax prescribed under Section 196, as amended, but only to the documentary stamp tax of P3.00 imposed under Section 188, of the same Code. Finally, the transfer of the abovementioned real property to the donee institution is not subject to the capital gains tax since there is no sale involved pursuant to Section 21(e) of the Tax Code, as amended. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue