BIR Ruling No. 500-12

July 31, 2012 BIR RULING NO. 500-12 Sections 101 (A) (3), 196 and 188 of the Tax Code of 1997, as amended; BIR Ruling No. 300-11; and BIR Ruling No. 022-10 Office of the Archbishop Archbishop House, P.O. Box 113 Cagayan de Oro City Attention: Antonio J. Ledesma, S.J. Archbishop of Cagayan de Oro Gentlemen : This refers to your letter dated 5 April 2011 requesting for the issuance of a Certificate of Tax Exemption from Donor's Tax pursuant to Section 101 of the National Internal Revenue Code of 1997, as amended. It is represented that Guido Francis P. Cua donated a parcel of land with an area of Two Hundred Ninety Three (293) square meters more or less , situated at Canitoan, Cagayan de Oro City, and covered by Transfer Certificate of Title No. T-153777 to The Roman Catholic Archbishop of Cagayan de Oro, Inc. (RCACDO) , a corporation sole duly organized and existing by virtue of the laws of the Republic of the Philippines, as evidenced by SEC Certificate of Registration No. 889. In support of your request, you have submitted the following documents: 1. Duly notarized "Deed of Donation of Real Property" dated 7 June 2010; 2. Land Registration Authority CCV Form of TCT No. T-153777; 3. Certified True Copy of Tax Declaration No. G139068; 4. Original SEC Certified True Copy of The Roman Catholic Archbishop of Cagayan de Oro, Inc.'s Articles of Incorporation; aAEHCI 5. Certificate of No Improvement issued by the Office of the City Assessor of Cagayan de Oro City 28 March 2011; and 6. Photocopy of Guido Francis Pabia Cua's Certificate of Live Birth. In reply, please be informed that inasmuch as the Donee is a religious organization and the real property subject of said donation shall be exclusively utilized for its religious activities, the aforesaid donation is exempt from the payment of donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, as amended. (BIR Ruling No. 300-11 dated August 12, 2011) Section 185 of Regulations No. 26, otherwise known as the Revised Documentary Stamp Tax Regulations, implementing Title VII of the Tax Code, provides that conveyances of realties not in connection with a sale, to trustees or other persons without consideration are not taxable. Accordingly, the deed of donation to be executed by Guido Francis P. Cua in favor of the RCACDO shall not be subject to the documentary stamp tax prescribed under Section 196 of the Tax Code, as amended, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling No. 022-10 dated August 3, 2010) As a condition to the issuance of the Certificate Authorizing Registration, you are hereby required to submit to the concerned Revenue District Office and the Law Division a certified true copy of the duly executed Deed of Donation and other pertinent documents prescribed under Revenue Memorandum Circular No. 14-01. 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 as null and void. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue