BIR Ruling [UN-048-95]

January 31, 1995 BIR RULING [UN-048-95] The Roman Catholic Archbishop of Manila 121 Arzobispo Street Intramuros, Manila Attention: Msgr . Domingo A . Cirilos, Jr . Deconomus/(Treasurer) Gentlemen : This refers to your letter dated November 21, 1994 requesting a ruling as to whether the donation executed by Mr. Anacleto Gongon in favor of the Roman Catholic Archbishop of Manila of a parcel of land located in Kalookan City containing an area of Three Hundred Two (302) square meters and covered by TCT No. 128705 issued by the Register of Deeds of Kalookan City is exempt from donor's tax. cdtech It is represented that the Roman Catholic Archbishop of Manila is a religious corporation sale. 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 not 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 Roman Catholic Archbishop of Manila 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, Revenue 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) cdtech Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)