BIR Ruling No. 324-2016

REPUBLICOFTHE PHILIPPINES

BUREAU ONTE EALREVENUE DEPARTMENTOFFINANCE

Section 101A(3 of the Tax Code 2004

BIR Ruling No.376-12 of 1997:

BIR Ruling No.353-12 BIR Ruling No.499-11

324-2016 6-29-2016

ROMAN CATHOLIC BISHOP OF PARANAQUE,INC.

No.8 Villonco Road,West Service Road (Km.21 Diocesan Center for Evangelization

Sucat,Muntinlupa City

Attention :Most Rev.Jesse E.Mercado,D.D.

Bishop of Paranaque

Gentlemen:

This refers to your letter dated December 17.2012, requesting for a confirmation

on the exemption of Donor's Tax and Documentary Stamp Tax relative to the Deed of

Donation made and executed by Greenfield Development Corporation in favor of

Roman Catholic Bishop of Paranaque,Inc. pursuant to Section i01A3 of the Tax

Code of 1997.as amended.

Documents submitted show that Greenfield Development Cornoration

hereinafter referred to as theDonorwith Taxpayer's Identification No.TIN

is a corporation duly organized and existing under Philippine laws and registered

with the Securities and Exchange Commission (SEC) under Registration No. that

the donor is represented by Mr. Jeffrey D.Y. Campos and Mr. Mariano John L. Tan, Jr

who were duly authorized by the Board of Directors to execute the Deed of Donation:that

the donee. Roman Catholic Bishop Of Paranaque, Inc.with Taxpayer's Identification

laws of the Philippines and registered with the Securities and Exchange Commission (SEC) No. is a corporation sole organized and existing in accordance with the

under Registration No. that the donor is the registered owner of a parcel of

land more particularly described as follows:

A parcel of land otherwise known as Lot I-B.Psd

0083592.situated in Brgv Cupang,Muntinlupa City containing un area of Four Hundred Ninetv One (491)

square meters,and duly covered with Transfer

Certificate of Title No.150918

that a Deed Donation was executed on December 7. 2012 whereby Greenfield

Development Corporation donated the aforementioned property in favor of Roman

Catholic Bishop of Paraniaque, Inc. represented by Most Reverend Jesse E. Mercado

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D.D.: that the donee accepted the donation under the conditions set forth as embodied in the Deed of Donation.

amended provides: In reply,please be informed that Sec.101 A3 of the Tax Code of 1997,as

or donations shall be exempt from the tax provided for in this Chapter: "SEC.101.Exemption of Certain Gifis.-The following gifis

A In the Case of Gifts made by a Resident.

XXXXXXXXX

percent (30%) of said gifts shall be used by such done for religious,cultural or social welfare corporation, institution, accreditednon-governmentalorganization,trust or philanthropic, organization or research institution or organization: Provided, however. that not more than thirty administrative purposes... (3) Gifis in favor of an educational and/or charitable.

conveyances of realties not in connection with a sale, to trustees or other persons without consideration are not taxable.(BIR Ruling No.376-12 dated June 6.2012 corporation sole and that the donated property is to be exclusively devoted for religious donation of real property.the Register of Decds shall annotate this condition at the back of the title because failure to comply with the said condition shall subject the donation to donor's tax. Section 185 of Regulations No. 26,otherwise known as the Revised Documentary Stamp Tax Regulations,impiementing Title VII of the NIRC,provides that purposes, donation to it is exempt from the payment of donor's tax pursuant to Section than 30% of said gift shall be used by the donee for administration purposes. In case of 101A3 of the Tax Code of 1997.as amended,subject to the condition that not more Hence, inasmuch as donee, Roman Catholic Bishop of Paraniaque, Inc. is a

tax prescribed under Section 196 of the Tax Code of 1997, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the same Tax Code.(BIR Ruling No 353-12 dated Muy 21,2012 Accordingly, the deed of donation is likewise not subject to the documentary stamp

vat-registered real estate developer and the donated properties are deemed ordinary assets. The donation is.however, subject to value-added tax (VATsince the donor is a

the donation is exempt from VAT.(BIR Ruling No.499-11 dated December 15,2011 ordinary asset. the donation is subject to VAT pursuant to Section 4.106-7 of Revenue Regulations (RR No.16-2005,the same being considered a transaction decmed sale.but the input VAT attributed to the VAT portion of the cost of the donation should be deducted from accumulated input VAT of the donor.If the donor is not a VAT registered person If the donor is a Value-Added Tax (VAT registered person and the donation is an

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the gain realized which is determined by deducting from the gross selling price the conveyed by way of sale or exchange,the sale will be subject to corporate income tax on historical cost or the adjusted basis thereof as it would be in the hands of the donor It is to be noted that if the same properties acquired by gift are subsequently

pursuant to Section 27 in relation to Section 101.both of the Tax Code of 1997,as amended. and consequently to the creditable expanded withholding tax under Section 2.57.2 of RR

properties donated to it to non-exempt donee. it shall be liable for donor's tax pursuant to No.2-98.as amended.If Roman Catholic Bishop of Paranaque,Inc.donates same

Section 98 of the Tax Code of1997.as amended.

However. if upon investigation. it will be disclosed that the facts are different, then this This ruling is being issued on the basis of the foregoing facts as represented

ruling shall be considered null and void.

Very truly yours.

KIM S. JACINTO-HENARES Commissioner of Internal Revenue

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JUN 2 8 2016

K-1-JAC