BIR Ruling [UN-046-95]

January 25, 1995 BIR RULING [UN-046-95] Missionaries of Charity 83 Lorraine Street Parkway Village Quezon City Attention: Mr . Charles Bartolo, M . C . Novice Director Gentlemen : This refers to your letter dated July 1, 1994 requesting a ruling as to whether the donation executed by Ms. Generosa Bernardino in favor of the Regional Servant of the Missionary Brothers of Charity, Inc. of a parcel of land located in Bagbag, Quezon City containing an area of 8,297 square meters and covered by TCT No. 32370 issued by the Register of Deeds of Quezon City is exempt from donor's tax. cdtech It is represented that the Regional Servant of the Missionary Brothers of Charity, Inc. is a non-stock, non-profit religious corporation duly registered with the Securities and Exchange Commission on May 30, 1989. In reply, please be informed that pursuant to Section 94(a) (3) of the Tax Code, as amended, gifts made in favor of a religious institution shall be exempt from the donor's tax provided that no more than thirty per centum of said gifts shall be used by such donee for administration purposes. Such being the case, since the donee, the Regional Servant of the Missionary Brothers of Charity, Inc. is a non-stock, non-profit religious institution, the aforesaid donation is exempt from donor's tax provided that not more than thirty per centum (30%) of said donation shall be used by such donee for administration purposes. Moreover, the Deed of Donation is not subject to the documentary stamp tax prescribed by Section 196 of the Tax Code, as amended, since the transfer is gratuitous and has no consideration, (Section 161, Regulations No. 26 otherwise known as the Revised Documentary Stamp Tax Regulations). However, the acknowledgment of the Deed of Donation before a Notary Public is subject to the documentary stamp tax of P10.00 pursuant to Section 188 of the same Code, as amended. (BIR Ruling No. 11-94, dated January 10, 1994). Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)