BIR Ruling [UN-028-96]

January 19, 1996 BIR RULING [UN-028-96] Sto. Nio Compound Association, Inc. Phase II Moonwalk Talon, Las Pias, Metro Manila Attention: Ms . Elena Casas President Gentlemen : This refers to your letter dated March 15, 1995 requesting for exemption under Section 94(a)(3) of the Tax Code, as amended, of the donation of one (1) parcel of land located at Las Pias, Metro Manila, covered by Transfer Certificate of Title No. 87680 of the Registry of Deeds for Las Pias, Metro Manila, made by VAA Builders Corporation, in favor of Sto. Nio Compound Association, Inc. cdtech Documents submitted disclosed that the Sto. Nio Compound Association, Inc. is a non-stock, non-profit corporation organized and existing under the laws of the Philippines with the purpose of responding to the needs of its members and to provide livelihood projects in order to solve unemployment problems of its members. In reply, please be informed that inasmuch as the donee is a foundation organized for social welfare purposes, 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 documentary stamp tax prescribed under Section 196 of the Tax Code, as amended, but only to the documentary stamp tax of P10.00 imposed under Section 188 of the same Code. (BIR Ruling No. 213-93 dated May 14, 1993) Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head, Revenue Executive Assistant Legal Service