Donation of Land to a Welfare Foundation - Exempt from Donor's Tax

December 23, 1993 BIR RULING NO. 515-93 DONATION OF LAND TO A WELFARE FOUNDATION EXEMPT FROM DONOR'S TAX 94 (a) (3) 214-93 515-93 Atty. Luis Ma. Jose G. Sison 1849 Mendoza Guanzon Street Paco, Manila This refers to your letter dated August 3, 1993 requesting exemption from the payment of the donor's tax under Section 94(a) (3) of the Tax Code, as amended, of the donation of a parcel of land consisting of 254 square meters pro-indiviso share together with all improvements existing thereon, covered by Transfer Certificate of Title No. 25885 of the Register of Deeds of Quezon City, made in favor of People Engaged in People Projects Foundation, Inc. by Ma. Gregoria M. Heredia, by virtue of a Deed of Donation executed on March 5, 1993. Documents submitted disclosed that People Engaged in People Projects Foundation, Inc. is a non-stock, non-profit corporation granted a Certificate of Registration No. 1642 dated July 9, 1991, as a donee institution in accordance with the provisions of BIR-NEDA Regulations No. 1-81, April 30, 1981. In reply, please be informed that inasmuch as the donee is a non-stock, non-profit social welfare corporation, 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 not more than 30% of said gift shall be used by the donee for administration purposes. aisadc LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue