BIR Ruling No. 319-2017

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City

BIR Ruling No.311-2014 Section 10lA2 of the Code of 1997, as amended: National Internal Revenue 319-2017

6-28-2017

TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES

Dasmarifias City, Cavite Carlos Q.Trinidad Ave., Salawag

Attention: MYRNA M.TEPORA.Ph.D. Campus Director

Gentlemen:

This refers to your letter dated December 07, 2015, received by this Office on December 10, 2015. requesting exemption from payment of donor's tax on the donation of four parcels of land made between the BANCO DE ORO (BDO) UNIBANK, INC

the TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES (hereinafter referred to as the "DONEE"). (formerly Equitable PCIBank)(hereinafter referred to as theDONOR")in favor of

It is represented that the DONOR with Taxpayer Identification Number (TIN) and with principal address at BDO Corporate Center. 7899 Makati

owner of four parcels of land covered by Transfer Certificate of Title (TCT) No. T- under and by virtue of the laws of the Republic of the Philippines: that it is the registered Avenue, Makati City, is a universal banking institution duly organized and existing containing an area of Forty Three Thousand Five Hundred Forty (43.540) square meters, of the Registry of Deeds for the Province of Cavite, particularly described as follows:

TCT No.

being a portion of ihe cons. of lots. 3847-B-2, 5847-B-3 & 5847-B-6, all of(LRC), Psd- Salitran, Mun. ot Dasmarinas, Province of Cavite, Isiand of Luzon. FIVE HUNDRED FORTY (43,540) SOUARE METERS. Bounded on . "A parcel of land (Lot 2 of the cons. subd. plan Pes- : .containing an area of FORTY THREE THOUSAND (LRC) Rec. No. situated in the Brgy.of

Transfer Certificate of Title (TCT) No. T. Thousand Eight Hundred Ninety Nine (3.899) square meters. of the Registry of Deeds for the Province of Cavite, particulariy described as follows: containing an area of Three

TCT No. T

in the Brgv. of Saliiran, Mun. of Dasmarinias, Province of Cavite, Istand 3 & 5847-B-6, all of(LRC),Psd of Luzon. Bounded on . EIGHT HUNDRED NINETY NINE (3.899) SQUARE METERS... Pcs- "A parcel of land (Lot 3 (ROAD LOT) of the cons. subd. plan being a portion of the cons. of lots. 5847-R-2, 5847-B- .containing an area of THREE THOUSAND LRCRec.No. situated

TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES 19-2017 2017

One Hundred Four (1.104) square meters, of the Registry of Deeds for the Province of Cavite, particularly described as follows: Transfer Certificate of Title (TCT) No.T. containing an area of One Thousand

TCT No. T-

in the Brgy. of Salitran, Mun. of Dasmarinas, Province of Cavite, Island ONE HUNDRED FOUR (1.104) SOUARE METERS.. 3 & 5847-b-6, all of(LRC), Psd- Pcs ofLuzon. Bounded on. "A parcel of land (Lot 4 (ROAD LOT) of the cons. subd. plan being a portion of the cons. of lots. .containing an area of ONE THOUSAND (LRC) Rec. No. -B-2. 5847-B- , situated

Registry of Deeds for the Province of Cavite, particularly described as follows: and Transfer Certificate of Title (TCT) No. T-1059928 containing an area of Ten Thousand Nine Hundred Eighty Five (10.985) square meters. more or less, of the

TCT No. T-

Psd-315404, approved as a nons-subd. project,"being a portion of Lor 5847-B (LRC) Psd-203721.LRC Rec. No. 8843) situated in the Bo. o1 Salitran, Mun. of Dasmarinas, Province of Cavite, Island of Luzon HUNDRED EIGHTY FIVE (10.985) SOUARE METERS. MORE OR LESS.. Bounded on "A PARCEL OF LAND (lot 5847-B-8. of the subd. plan (LRC) containing an area of TEN THOUSAND NINE

824-548-002 and with principal office at Ayala Boulevard corner San Marcelino Street. No. 1518: that on March 25.2013,the DONOR.represented by its Senior Vice represented by its President. Dr.Olympio V.Caparas,conveying to the latter the above- described parcels of land in view of the significant impact of the DONEE's mission which is supportive of the declared national policy of accelerating human resources education in national development in all its facets: and that the DONEE accepted the donation under the conditions set forth as embodied in the same instrument. that on the other hand. the DONEE, with Taxpayer Identification Number (TIN 000- Ermita Manila, is a state university established by virtue of Presidential Decree (PD) President, Evylene C. Sison, executed a Deed of Donation in favor of the DONEE

Revenue Code of 1997.as amended, provides that: In reply, please be informed that Section 101 (A)(2) of the National Internal

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

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subdivision of the said Government: Government or any entity created by any of its agencies which is not conducted for profit, or to any political (2) Gifts made to or for the use of the National

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Revenue Code of 1997, as amended. owned institution, the aforementioned donation of four parcels of land is exempt from the payment of donor's tax pursuant to Section 101 (A) (2) of the National Internal TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES which is a state In view of the foregoing, since the donation is made to or for the use of the

TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES #3193017 628-2017

Moreover, Section 185 of Regulations No. 26, otherwise known as the Revised Documentary Stamp Tax Regulations, implementing Title Vil of the National Internal Revenue Code of 1997, as amended. provides that conveyances of realties not in connection with a sale, to trustees or other persons without consideration are not taxable. Accordingly. the Deed of Donation is not subject to the documentary stamp-tax prescribed under Section 196 of the National Internal Revenue Code of 1997, as amended. but only to the documentary stamp tax of P15.00 imposed under Section 188 of the same Code. (BIR Ruling No. 311-2014 dated August 4, 2014)

Furthermore, if the donor is a VAT-registered person and the donation is an ordinary asset, the donation is subject to VAT pursuant to Section 4.106-7 of Revenue Regulations (RR) No. 16-2005, as amended, the same being considered a transaction deemed sale.But. if the donor is not a VAT-registered person, the donation is exempt from VAT.

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

Very truly yours.

1ascn1y

Commissioner of Internal Revenue CAESAR R. DULAY 007303

-K-I-LMAT

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