BIR Ruling [UN-114-95]

March 20, 1995 BIR RULING [UN-114-95] Atty. Balbino Gatdula Jr. 699 M. Naval Street Navotas, Metro Manila S i r : This refers to your letter dated March 6, 1995, requesting exemption under Section 94(a)(3) of the Tax Code, as amended, of the donation made by Messrs. Samuel M. Santos and Victorino O. Juico of a parcel of land located in Tondo, Manila containing an area of three hundred seventy eight square meters and forty square decimeters (378.40) more of less, covered by Transfer Certificate of Title No. 215499 of Manila, in favor of the Philippines Annual Conference of the United Methodist Church executed on February 22, 1995. cdi Documents submitted show that the Philippines Annual Conference of the United Methodist Church is a non-stock, non-profit religious corporations organized for the purposes of (a) diffusing the blessings of Christianity, education, mission, evangelism, social concerns and ecumenism and (b) advancing the interests of Christianity through the establishments and maintenance of church and other religious organizations its name. In reply, please be informed that inasmuch as the donee is a religious institution, the aforementioned donation is exempt from payment of donors 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 P10.00 imposed under Section 188 of the same Code (BIR Ruling No. 94(a)(3) 301-92-452-93 dated November 19, 1993). Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Rev. Executive Assistant Legal Service