Donation to Caritas Manila Exempt from Donor's Gift Tax

November 19, 1993 BIR RULING NO. 459-93 94 (a) (30) 301-92 459-93 Donation to Caritas Manila Exempt from Donor's Gift Tax Caritas Manila, Inc. 2002 Jesus Street Pandacan, Metro Manila This refers to your letter dated February 19, 1993 requesting tax exemption under Section 94(a)(3) of the Tax Code, as amended, of the donation made by Robinson's Land Corporation of a parcel of land located at the corner of EDSA and Ortigas Avenue, containing an area of 1,000.6 square meters covered by Transfer Certificate of Title No. 38663 of the Register of Deeds of Quezon City in favor of CARITAS MANILA, INC. by virtue of a Deed of Donation executed on August 1, 1992. Investigation conducted by this Office disclosed that Caritas Manila, Inc. is a non-stock, non-profit charitable 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 charitable institution, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 94(a)(3) of the Tax Code, as amended, subject to the condition that no more than 30% of said gifts shall be used by the donee for administration purposes. Moreover, the aforesaid Deed of Donation is not subject to documentary stamp tax prescribed under Section 196 of the Tax Code as amended, but only to the documentary stamp tax of P3.00 imposed under Section 188 of the same Code. cdtech LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue