BIR Ruling [UN-023-94]

January 20, 1994 BIR RULING [UN-023-94] Atty. Balbino Gatdula, Jr. 699 M. Naval St., Navotas Metro Manila S i r : This refers to your letter dated January 14, 1994 requesting exemption under section 94(a) (3) of the Tax Code as amended, of the donation made by Mr. Jovito Cavite of a parcel of land located at Bolo Bauan, Batangas, containing an area of eight hundred forty-five (845) square meters, more or less, covered by Original Transfer Certificate of Title No. P-25671 of the Register of Deeds of Batangas, in favor of the Philippines Annual Conference of The United Methodist Church by virtue of a Deed of Donation executed on November 24, 1993. Documents submitted show that the Philippine Annual Conference of the United Methodist Church is a non-stock non-profit religious corporation organized for purposes of (a) diffusing the blessings of Christianity, education mission, evangelism, social concerns and ecumenism; and, (b) advancing the interest of Christianity through the establishment and maintenance of churches and other religious organizations in its name. In reply, please be informed that inasmuch as the donee is a religious 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 not more than 30% of said gift shall be used by the donee for administration purposes. Moreover, the aforesaid Deed of Donation is not subject to the 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 [BIR Ruling No. 94(a) (3) 301-92-452-93 dated November 19, 1993]. cdtech Very truly yours, JAIME M. MAZA Assistant Commissioner (Legal Service)