BIR Ruling [UN-192-95]

May 23, 1995 BIR RULING [UN-192-95] Meer, Meer and Meer 9th Floor, PLDT Building Legaspi St., Makati City Attention: Atty . Simeon G . Hildawa Gentlemen : This refers to your letter dated October 7, 1994 requesting for a ruling confirming your opinion that the donation by your client, Ms. Susan Meller, of her condominium units covered by Condominium Certificate of Title Nos. PT-5275 and PT-5276 of the Registry of Deeds of Pasig City, in favor of Asia Network In Development, Inc. (ANIDI) is exempt from donor's tax and documentary stamp tax. aisadc It is represented that your aforementioned client is an American citizen, of legal age, single, with residence at 415 Seventh St., Santa Monica, California 90402, USA; that she is the registered owner of two condominium units known as Units C and D of the 19th Floor of Strata 200 Building, located at Emerald Avenue, Pasig City, covered by Condominium Certificate of Title Nos. PT-5275 and PT-5276 of the Registry of Deeds of Pasig City; that by virtue of a Deed of Donation executed on September 12, 1994, she donated the aforementioned condominium units to a social welfare and civic corporation, the ANIDI; that the ANIDI is a non-stock, non-profit corporation duly organized under Philippine laws, primarily for the purpose of helping alleviate poverty in Asia and the Pacific; that no part of the net income of the corporation inures to the benefit of any private person; that its Board of Trustees do not receive compensation or fixed remuneration; that not less 70% of the total fund of the corporation is used to carry out the purposes enumerated in its articles and not more than 30% of its total funds is utilized for administration purposes; and that based on the foregoing facts and applying Sections 94 and 196 of the Tax Code, you are of the opinion that the donation by your client of her two condominium units in favor of ANIDI, is legally exempt from the donor's tax and documentary stamp tax except the documentary stamp tax on certificates under Section 188 of the Tax Code. In reply, please be informed that inasmuch as the donee is a social welfare organization, your opinion to the effect that the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 94(b)(2) of the Tax Code, as amended, is hereby confirmed subject to the condition that not more than 30% of said gift shall be used by the donee for administration purposes. (BIR Ruling No. 064-92 dated February 24, 1992) Moreover, your opinion that the aforesaid donation is not subject to the documentary stamp tax imposed 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, is likewise hereby confirmed. cdtech Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)