BIR Ruling [UN-412-95]

November 22, 1995 BIR RULING [UN-412-95] Atty. Balbino Gatdula, Jr. 699 M. Naval Street Navotas, Metro Manila S i r : This refers to your letter dated November 8, 1995, requesting exemption under Section 94(a)(3) of the Tax Code, as amended, of the donation made by the Heirs of the deceased spouses Benjamin I. Guansing and Emilia R. Guansing of a parcel of land located at Karapatan St., Sta. Cruz, Manila containing an area of 235.30 square meters covered by Transfer Certificate of Title No. 91960 issued by the Register of Deeds of Manila, in favor of the Philippines Annual Conference of the United Methodist Church executed on January 9 and 23, 1995. Documents submitted show that the Philippines Annual Conference of the United Methodist Church is a non-stock, non-profit religious corporation 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 churches and other religious organizations in the name of the United Methodist Church. 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). aisadc Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)