BIR Ruling No. 444-12

July 5, 2012 BIR RULING NO. 444-12 Sec. 101 (A) (3) of the Tax Code of 1997; BIR Ruling No. 387-11; BIR Ruling No. 300-11 Schoenstatt Movement of the Phils., Inc. Lawaan III, Talisay City, Cebu Attention: Gracita B. Najarro Administrator, SMPI Gentlemen : This refers to your letter dated October 3, 2011 requesting exemption from the payment of donor's tax over parcels of land donated in favor of the Secular Institute of the Schoenstatt Sisters of Mary, Inc. It is represented that the Schoenstatt Movement of the Phils., Inc. with Tax Identification Number 000-208-305-991 is the owner of parcels of land located at Talisay City, Cebu with TCT No/s. T-115770, T-115771, T-115772, T-133835, T-133913, and T-155580 issued by the Registry of Deeds for the province of Cebu and containing areas of 15,639 square meters, 7,419 square meters, 15,138 square meters, 230 square meters, 263 square meters and 95 square meters, respectively; that on the other hand, the Secular Institute of the Schoenstatt Sisters of Mary, Inc. with Tax Identification Number 404-680-921-000 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. CN201127194; and that on September 5, 2011, a Deed of Donation was executed whereby Schoenstatt Movement of the Phils., Inc. transfers and conveys the above-mentioned subject properties to the Secular Institute of the Schoenstatt Sisters of Mary, Inc. 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. CEASaT 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. 387-11 dated October 20, 2011 and BIR Ruling No. 300-11 dated August 12, 2011) 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