BIR Ruling [UN-154-95]

April 11, 1995 BIR RULING [UN-154-95] Caritas Manila, Inc. 2002 Jesus Street Pandacan, Manila Attention: Msgr . Francisco G . Tantoco Jr . Gentlemen : This refers to your letter dated January 27, 1995 requesting for exemption under Section 94(9)(3) of the Tax Code, as amended of the donation made by the late Father Ernesto Tobillo, of a parcel of land situated in Barrio San Isidro, Camias, containing an area of one hundred ninety four (194) square meters covered by Transfer Certificate of Title No. 21478 of the Registry of Deeds of Rizal, in favor of Caritas Manila, Inc., by virtue of a Deed of Donation executed on February 1, 1993. cdta Documents submitted disclosed that Caritas Manila, Inc., is a non-stock, non-profit charitable institution duly registered as a donee institution under Batas Pambansa Blg. 45, amending Section 29(h) of the Tax Code, as amended, as implemented by BIR NEDA Regulations No. 1-81 as amended by BIR-NEDA Regulations No. 1-82 and Revenue Regulations No. 10-82. In reply, please be informed that inasmuch as the donee is a charitable 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 thirty per centum (30%) of said gifts shall be used by such donee for administration purposes. Moreover, the Deed of Donation is not subject to the documentary stamp tax prescribed under Section 196 of the Tax Code, as amended, since the transfer is without consideration. (Sec. 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 ten pesos P10.00 pursuant to Section 139 of the same Code, as amended. (BIR Ruling No. 459-93, dated November 19, 1993) cd Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Rev. Executive Asst. (Legal)