BIR Ruling No. 387-11

October 20, 2011 BIR RULING NO. 387-11 Sec. 101 (A) (3) of the Tax Code of 1997; BIR Ruling No. DA-(DT-015) 161-09; BIR Ruling No. DA-(DT-068) 725-09 Mabalacat Baptist Church, Inc. 119 McArthur Hi-way, Mamatitang Mabalacat, Pampanga Attention: Edwin C. Cordero Corporate Secretary Gentlemen : This refers to your letter dated May 20, 2011 requesting exemption from the payment of donor's tax over a parcel of land donated by the Philippine Baptist S.B.C., Inc. in favor of the Mabalacat Baptist Church, Inc. It is represented that the Philippine Baptist S.B.C., Inc. with Tax Identification Number 002-563-757-000 is the owner of a parcel of land located at Mamatitang, Mabalacat, Pampanga covered by TCT No. 121476-R issued by the Registry of Deeds for the Province of Pampanga and containing an area of eight hundred ninety four (894) square meters; that on the other hand, the Mabalacat Baptist Church, Inc. with Tax Identification Number 007-913-318-000 is a religious corporation duly organized and existing under the laws of the Philippines and registered with the Securities and Exchange Commission (SEC) under SEC Registration No. CN201017821; and that on May 12, 2011, a Deed of Donation was executed whereby the donor transfers and conveys eight hundred sixty (860) square meters of the subject property. In reply-thereto, please be informed that inasmuch as the donee is a religious corporation, 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. aACHDS Moreover, the Deed of Donation is not subject to documentary stamp tax. However, the acknowledgment on said deed is subject to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997, as amended. (BIR Ruling No. DA-S30-017-2002 dated July 23, 2002). 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