BIR Ruling [UN-173-95]

April 24, 1995 BIR RULING [UN-173-95] Sycip, Gorres, Velayo & Co. 6760 Ayala Avenue Makati, Metro Manila Attention: Atty . C . P . Noel Tax Division Gentlemen : This refers to your letter dated October 26, 1994 requesting on behalf of your clients, a ruling that donations to be made by Worldwide Church of God Philippine Branch (WCG-Phils.) in favor of The Regional Director Worldwide Church of God, Inc. is exempt from the donor's tax and that the Deed of Donation is subject to documentary stamp tax of P10.00 only. cd It is represented that the donor, WCG-Phils. is organized and existing under the laws of California, U.S.A. and is likewise registered with the Philippine Securities and Exchange Commission (SEC) to do business in the Philippines; that the donee, The Regional Director Worldwide Church of God, Inc. (a corporation sole) is organized and existing under Philippine laws and duly registered with the SEC under SEC Registration No. ANO94-001041 for the principal purpose of administering its temporalities; that the donor will donate to the donee all its properties consisting of condominium and parking units with Condominium Certificate of Title Nos. 30724, 30725, 30726, 30727, 30728 and 30729; and vehicles detailed as follows: CERTIFICATE OF DESCRIPTION MODEL PLATE NO. REG. NO. ANFRA 1990 COMMUTER VAN DIESEL 1990 PPV-414 04277981 AUV XLT 1992 CKZ-541 17718309 BEAVER SUZUKI 1983 GBZ-883 0420932 BEAVER SUZUKI 1983 HAD-775 0592132 BEAVER SUZUKI 1983 NTS-111 1303160 BEAVER SUZUKI F10A-597395 1983 GCF-923 0406985 CERES KIA 4X4 HSPUR 1994 TMP-383 22241474 COROLLA TOYOTA 1300 1993 THD-503 17741158 COROLLA TOYOTA 4DR GRAY GREEN 1991 PTU-411 08556322 COROLLA TOYOTA 4DR SEDAN 1.3 1991 GDK-364 08255992 COROLLA TOYOTA SEDAN XL 5SPEED 1991 TBU-799 10618705 COROLLA TOYOTA XE1300 1992 TDN-390 14369422 COROLLA TOYOTA XE1300 BLUE 1992 TDZ-611 14376025 FUSO JITNEY 1994 CLT-662 23258452 GALANT MITSUBISHI 2.0 A\T 1990 PNN-852 03880383 L-300 HSPUR W/ANALOK 1993 TJC-806 20093343 LANCER MITSUBISHI 1.3 EL 1991 JAV-348 08092642 LANCER MITSUBISHI 1.3 EL W/ AIRCON 1993 THX-485 19551227 LANCER MITSUBISHI 1300 EL 1991 PSV-922 07218213 LANCER MITSUBISHI 1300 EL 1991 PSV-982 07218224 LANCER MITSUBISHI 1.3 EL 1993 TLF-494 21618325 LANCER MITSUBISHI GLX-1500 1989 PNG-618 0485619 LANCER MITSUBISHI SL1400 1984 DEH-925 16471822 LANDCRUISER TOYOTA H-TOP 1978 KAN-282 1784743 LANDCRUISER TOYOTA M#B-0466704 1981 KAK-946 05718060 SAMURAI SUZUKI 1992 TDC-804 11097562 SAMURAI SUZUKI 1992 TFX-479 16404131 SAMURAI SUZUKI 1994 TNP-334 23799868 SAMURAI SUZUKI GRAY G13A-595874 1991 TAT-844 08479203 SAMURAI SUZUKI SJ413 1990 PPC-451 03999521 SAMURAI SUZUKI SJ413 1991 TAF-229 07811392 SAMURAI SUZUKI SJ413 4X4 1988 PKU-629 01314390 SAMURAI SUZUKI SJ413 T BLUE 1992 TDY-456 12053968 SAMURAI SUZUKI WHITE 1992 TDC-855 12037522 SENTRA NISSAN JX BCA-B-13-B23139 1993 FDF-790 17028909 SENTRA NISSAN MMSI 1992 TFK-737 15355089 TAMARAW TOYOTA FX 1.5 1993 TKC-671 19871008 TOWNACE TOYOTA M#2T6329464 1982 PHM-277 1915887 and that the donee will not be using more than 30% of the gift for administration purposes. In reply, please be informed that inasmuch as the donee is a religious 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 30% of said gift shall be used by the donee for administration purposes. Moreover, the contemplated 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. 108-94, undated). cdtech Very truly yours, ALICIA P. CLEMENO Assistant Commissioner Legal Service