BIR Ruling No. 272-2016

REPUBLICOF THE PHILIPPINES

DEPARTMENTOFFINANCE

BIREAU OFINTERNALREVENUE

Quezon City

Section 101A3,Tax Code of

1997,as amended

BIR Ruling No.128-13 BIR Ruling No.121-14

BIR Ruling No.232-13 BIR Ruling No.118-12 BIR Ruling No.300-11

#272-2016 6m22m2016

SANTISSIMO SACRAMENTO CATHOLIC Barangay Caypombo, Sta. Maria, Bulacan SCHOOLINC.

AttentionREV.MSGR.MARIO DJ.ARENAS,HP

Gentlemen:

This refers to your letter dated July 9. 2013. requesting for the issuance of a

favor of ST. DOMINIC DE GUZMAN SCHOOL, INC. (DONEE) pursuant to Section Certificate of Exemption from the payment of Donor's Tax,on the donation of real properties made by SANTISSIMO SACRAMENTO CATHOLIC SCHOOL,INC.(DONOR) in 101(A)(3)of the National Internal Revenue Code(NIRC) of 1997,as amended.

INC., a non-stock.non-profit corporation with registered address at Barangay Caypombo, Sta. It is represented that SANTISSIMO SACRAMENTO CATHOLIC SCHOOL,

the Philippines, registered with the Securities and Exchange Commission (SEC) with Company Maria. Bulacan, is a duly organized and existing corporation under the laws of the Republic of Registration No. dated November 22,2006 and with Bureau of Internal

Revenue (BIR Taxpayers Identification No. (TIN Registration No. , and that on January 2, 2012, the Revenue District and Certificate of

Office (RDO) No.25-B, Sta. Maria, Bulacan through its Revenue District Officer issued a

Certification stating therein that the above-mentioned taxpayer has retired/ceased/cancelled its

business registration with Revenue District Office No. 25-B, Sta. Maria, Bulacan, effective

September 14,2011:It is likewise represented that ST.DOMINIC DE GUZMAN SCHOOL

INC., a non-stock. non-profit educational institution with business address at Barangay

Caypombo. Sta. Maria, Bulacan, is duly organized and existing under the laws of the Republic of the Philippines, with Securities and Exchange Commission (SEC) Company Registration No dated March 9, 201 1; and that it is registered with the BIR with Certificate

of Registration No. ind Taxpayers Identification No.(TIN)

dated April 12.2011:that SANTISSIMO SACRAMENTO CATHOLIC SCHOOL, INC. is the registered owner of three (3) parcels of land all located at Barangay Caypombo, Municipality of Sta. Maria, Bulacan, covered by the following Transfer of Certificates Title, particularly described as follows

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SANTISSIMO SACRAMENTO

CATHOLICSCHOOLINC

Page 2 of 4

1) TRANSFER CERTIFICATE OF TITLE(TCTNO

A parcel of land (Lot 1383-F-1-A-1 of the Subdivision Plan Psd-03

102175 being a portion of Lot 1383-F-1-A LRC Psd-216223 LRC

Rec. No..containing an area of THIRTY SIX SQUARE

METERS (36 square meters) more or less;

2 TRANSFER CERTIFICATE OF TITLE (TCTNO.

A parcel of land (Lot 1562-B-1-A of the Subdivision Plan Psd-03-

103811 being a portion of Lot 1562-B-1 LRC Psd-278532 LRC Rec.

No.). containing an area of SEVENTY SEVEN SQUARE

METERS(77 square meters) more or less;and

3)TRANSFER CERTIFICATE OF TITLE(TCT)No.

A parcel of land (Lot 1561-B-2 of the Subdivision Plan Psd-03

158526 being a portion of Lot 1561-B Psd-03-134457 LRC Rec

No.),containing an area of ONE THOUSAND FIVE HUNDRED

SIXTY ONE SQUARE METERS (1,561 square meters) more or

Iess.

that on May 21, 2013, for and in recognition of the contribution of the Donee for spiritual

growth and education of the community as shown to the Donor by the Donee so that the former

may continue to serve the community in the furtherance of the Gospel and continuous

education,SANTISSIMO SACRAMENTO CATHOLIC SCHOOL,INC.(represented by

Rev. Msgr. Mario DJ. Arenas, HP), by its own volition and free will without any force and

intimidation executed a Deed of Donation covering the subject properties in favor of ST.

DOMINIC DE GUZMAN SCHOOL, INC. (represented by Sr.Domiciana M. Tenorio,OP)

thereby voluntarily giving, ceding. transferring and conveying by way of Donation the above

described properties together with its improvements thereon; that Sr. Domiciana M. Tenorio.

OP, accepted the donation in the same Deed.

In support of the request, the following documents were submitted by ST. DOMINIC

DE GUZMAN SCHOOL,INC

1. SEC certified true copies of the Certificates of

Incorporation of the Donor and Donee, respectively;

2. SEC certified true copies of the Articles of

Incorporation and By-laws of the Donor and Donee.

respectively;

3.BIR certified true copies of the Audited Financial

Statements for the immediately preceding taxable year

and the corresponding Annual Income Tax Returns of

both parties;

4. Affidavit of Undertaking that not more than thirty

percent (30%) of the donated property or value thereof

shall be used by the Donee for administration

purposes; 5.Verification and Affidavit of Non-forum Shopping:

6.Original/Certified true copy of the Board Resolution

authorizing Sr. Domiciana M.Tenorio, OP, to accept

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the aforesaid donations on behalf of ST.DOMINIC DE GUZMAN SCHOOL,INC. Duplicate original/certified true copy of the Deed of

Donation dated May 21,2013 8. Original copies of Transfer Certificates of Title (TCT

Nos. and

respectively all registered in the name of SANTISSIMOSACRAMENTOCATHOLIC SCHOOLINC.issued by the Registry of Deeds for the Province of Bulacan 9. Certified true conies of the Tax Declarations of TCT

Nos. ang

10. Certified true copies of the BIR Certificates of 11.Certified true copies of the Donor's Tax Returns (BIR respectively: Registration of both parties; and Form 1800duly filed with the Revenue District Office (RDO) No. 25B, Sta. Maria, Bulacan.

be used by the donee for administration purposes. (BIR Ruling No. 429-11 dated Novemher 4, 2011 payment of the donors tax pursuant to Section 101 (A) (3) of the Tax Code of 1997. as amended, subject to the condition that not more than thirty percent (30%) of the said gift shall religious, cultural or social welfare corporation, institution, accredited non-government organization, trust or philanthropic or research institution or organization is exempt from the In reply, please be informed that gifts in favor of educational and/or charitable.

institution, any donation to it is excmpt from the payment of donor's tax pursuant to the above In as much as ST. DOMINIC DE GUZMAN SCHOOL, INC. is an educational

30% of said gift shall be used by the donee for administration purposes. Since this is a donation provisions of the Tax Code of 1997, as amended, subject to the condition that not more than

of real property, the Register of Deeds shall annotate this condition at the back of the title because failure to comply with the said condition shall subject the donation of the abovementioned real properties to donor's tax.(BIR Ruling No.121-14 dated May 12,2014

Moreover, Section 185 of Revenue Regulations No.26, otherwise known as the

Revised Documentary Stamp Tax Regulations, implementing Title VII of the Tax 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 aforesaid Deed

of Donation is likewise, 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 P15.00 imposed under Section 188 of the same Code. (BIR Ruling No. 300-11 dated August 12, 2011)

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

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CATHOLIC SCHOOL,INC SANTISSIMO SACRAMENTO 622-2016

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It is to be noted that if the same property acquired by donation is subsequently

conveyed by way of sale or exchange, the sale will be subject to capital gains tax based on the

gross selling price or current fair market value as determined in accordance with Section 6 (E)

of the Tax Code of 1997, whichever is higher, of such land/or building. (Revenue

Memorandum Circular No. 007-12).

AIso.if ST.DOMINIC DE GUZMAN SCHOOL,INC.donates the same property

donated to it to a non-exempt donee, it shall be liable for donor's tax as provided for under Section 98 of the Tax Code of 1997,as amended.(BIR Ruling No.118-12 dated February 22, 2012)

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. However.

Very truly yours.

KIM S. JACINTO-HENARES

Commissioner of Internal Revenue

SCHOOLINC. K-1-VDPM14 SANTISSIMO SACRAMENTO CATHOLIC 042223 JUN 2 0 2016