BIR Ruling No. 005-2017

BUREAU OF INTERNALREVENUE REPUHIR OF THE PHHLIPPINES DEFARTMENT OF FINANCE Quezon City

BIR Ruling No. 096-2014: Setons 10Ar: i01(Bj}.{o97 Tax (ode. as amended Revenue Regulations No. 25-03 BIR Ruling No. 219-2016: BIR ITAD Ruling No.061-08

0C5-2017 -1-C

Municipality of Burauen. I eyte Hon. Fe Sudario-Renomeron Datc

Madam:

This refers to vour letter dated A\pril 13. 2016. as indorsed by the Resional Director ot Revenue Region No. 14. Palo. Levte requesting for confirmation of vour opinion that the donaiion made bv the UNITED NATIONS CHILDREN'S FLND (LNICEF) to the Municipal Government of Burauen. Levte under a Deed of Donation is exempt from donor's tax.

Documents submitted show that I NICEF is a specialized agency of the t nited Nations and is the registered owner of a locally-purchased vehicle specifically described as follows:

Tyne of Bedv: 3.CL 4x4 Diesel M.T 2008 Tovota Hi-Lux Chassis No.:

Engine Number:.I Pate N

concluded on November 20. 1918 under which LNICEF commiis to provide various In pursuance to the Basic Agreement between the Philippine Government

clearly reflected in the prov isions ot the signed Memorandum ot Agreement between suppiy assistance to assisi in the execution of the proiects in the Philippines. and as

was one of the towns which was badly-hit by Typhoon Yolanda. UNICFF and the Philippine Government for use in the conduct of activities under the Seventh Couniry Programme for Children (CPC VIl). the above-stated vehicie was donated by the UNICEF to the Municipality ot Burauen. Leyte. The atoresaid loeality

purchase ot the subject vchicle. for official use of lNCEF. 28. 2008 to UNICFF granting exemption trom vaiue-added tax (VA T on their local This Office has previousIv issued BIR {TAD Ruling No. 06}-08 dated August

and anv ot its agencies which are not conducted for profit. or to any ot its political In reply. please be inicrmed that donations made in favor ot the Government

subdivisions. are exeimpt from the payment of the donor's tax pursuant to the provisions of Section 101 (Au2) and Seetion 10: (B)(h) of the Tax Code ot 1997. as amended. which provides:

shall be exempt from the tax provided for in this Chapter: -SEC 101. Exemption of Certain Gifts. -- The tollowing gifts or donations

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Municipaliry of BurauenLeyte Page 2 of 2

(A) In the Case of Gifts Made by a Resident. -

XXX XXX XXX

2) Gifts made to or for the use of the National Government or any entity

created by any of its agencies which is not conducted for profit. on to any political subdivision of the said Government: and

XXX XXX XXX

(B In the Case of Gifis Made by a Nonresident not a citizen of the Philippines.

Gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit or to any political subdivision of the said Government."

of the National Government,the donation made by UNICEF in its favor is exempt from Accordingly.since the Municipality of Burauen.Leyte is a political subdivision

the payment of donor's tax pursuant to the above quoted provisions.(BIR Ruling No Government of Burauen. Leyte.not being exempt from the same.shall pay the VAl Code,as amended and Section 8 of Revenue Regulations No.25-03,respectively(B/R 165-2012 daied March 09. 2012 However, if the purchase of the vehicle was previously exempted from VAT and ad valorem tax (excise tax. the Municipal and the excise tax due on the transaction pursuant to Section 107B of the 1997 Tax Ruling No. 096-2014 dated March 14. 2014

imposed under Section 188 of the same Code.(BIR Ruiing No.02+-10 dated August Moreover,the Deed of Donation is subject to documentary stamp tax of P15.00

04.2010

However, if upon investigation it will be disclosed that the facts are different. then this ruling shall be considered null and void. This ruling is being issued on the basis of the foregoing facts as represented. Very truly yours.

R CAESARR.DULAY K-1-RFR burauen Commissioner of Internal Revenue 002981