An Ordinance Amending Pertinent Sections of Provincial Ordinance No. 2017-145, "2017 Revised Revenue Code of the Province of Iloilo"

September 2, 2009 BIR RULING [DA-(DT-044) 487-09] Section 101 (A) (2); BIR Ruling No. DA-618-04 City of Marikina Shoe Avenue Sta. Elena, Marikina City Attention: Atty. Nancy Villanueva Teylan City Attorney Gentlemen : This refers to your letter dated August 13, 2009 requesting for a ruling that the donation of real property by the Cottage Industry Technology Center to the City Government of Marikina is not subject to donor's tax. ETISAc Documents show that the Cottage Industry Technology Center (CITC) formerly, the National Cottage Industries Development Authority (NACIDA), with office address at #20 Russet St., SSS Village, Marikina City, is a government agency attached to the Department of Trade and Industry (DTI). It is the registered owner of a parcel of land covered by Transfer Certificate of Title No. 191359 and situated in Marikina City with an aggregate area of 46,750.40 square meters. The City Government of Marikina , with principal office at Shoe Avenue, Sta. Elena, Marikina City, is a local government unit created and existing under the laws of the Republic of the Philippines. On June 22, 2009, CITC donated a portion of the above-described real property or 10,000 square meters thereof unto and in favor of the City of Marikina under such terms and conditions set forth in the Memorandum of Agreement entered into by the parties dated June 22, 2009. In reply, please be informed that since the donee is a political subdivision of the Government, the aforementioned donation of a parcel of land is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the Tax Code of 1997, as amended. Moreover, the aforesaid Deed of Donation is not subject to the documentary stamp tax under Section 196 of the Tax Code of 1997, as amended, but only to the documentary stamp tax of PhP15.00 on certification under Section 188 of the same Code. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered as null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service