BIR Ruling [UN-216-94]

July 19, 1994 BIR RULING [UN-216-94] Secular Order Of Discalced Carmelites (Manila Chapter), Inc. 4 Fifth Street, New Manila Quezon City Attention: Sr . Felicitas B . Carlos President Gentlemen : This refers to your letter dated June 6, 1994 requesting exemption under Section 94(a)(3) of the Tax Code, as amended, of the donation made by the Discalced Carmelite Fathers, Inc. of a parcel of land located in New Manila, Quezon City, containing an area of one thousand one hundred ten (1,110) square meters covered by Transfer Certificate of Title No. 62468 of the Registry of Deeds of Quezon City, in favor of the Secular Order Of Discalced Carmelites (Manila Chapter) Inc., executed on April 21, 1994. cdtech Documents submitted to this Office show that the Secular Order Of Discalced Carmelites (Manila Chapter), Inc. is a non-stock, non-profit religious corporation, the main purpose for which it is formed is to have an association of persons who, though living in the world, desire to aim at Christian perfection in the way most suitable to their state of life; that the corporation not only promotes religious practices, such as retreats, novenas and other devotions and engages in catechetical work but it also performs acts of charity including board and lodging, free medicines and medical treatment to the poor. In reply thereto, 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 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) 301-92-504-94 dated February 11, 1994). Very truly yours, ALICIA P. CLEMENO Acting Assistant Commissioner (Legal Service)