BIR Ruling No. 287-2018

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City Bureau of Internal Revenue Ruling

Sec 4,25 of RA 9500 February 27. 2018 Date 287m2018 Person to Contact: Chief, Legal and Legislative Division Tel Nos. 926-55-36 / 927-09-63

Laguna, Philippines 403 1 UNIVERSITY OF THE PHILIPPINES LOS BANOS

Gentlemen: Attention: HON.REX VICTOR O.CRUZ Chancellor

confirmation of your opinion that the donation made by INTERNATIONAL RICE RESEARCH MAKILING CENTER FOR MOUNTAIN ECOSYSTEMS (MCME) of the COLLEGE OF INSTITUTE (IRRI) to the UNIVERSITY OF THE PHILIPPINES LOS BANOS' FORESTRY AND NATURAL RESOURCES (CFNR) is exempt from Donor's Tax. This refers to your undated letter received by this Office on July 7, 2014 requesting a

Lux Pick-up for the official use of the MCME of the CFNR, more specifically described as follows: PHILIPPINES LOS BANOS a Deed of Donation covering the donation of a 1991 Toyota Hi On October 17, 2013, the IRRI executed in favor of the UNIVERSITY OF THE

Make/Type Plate No. Color Motor No. Chassis No.

the "University of the Philippines Charter of 2008", which provides: PHILIPPINES LOS BANOS invokes Section 25 of Republic Act No. 9500, otherwise known as In support of such claim for exemption from Donor's Tax, UNIVERSITY OF THE

"Sec. 25. Tax Exemptions. - The provisions of any general or special law to the contrary notwithstanding:

purposes or in support thereof shall be exempt from all taxes and duties; "(a) All revenues and assets of the University of the Philippines used for educational

the donor's tax and the same shall be considered as allowable deductions from the gross income of the donor, in accordance with the provisions of the National Internal Revenue "(b) Gifts and donations of real and personal properties of all kinds shall be exempt from Code of 1997, as amended: Provided, That the allowable deductions shall be equivalent to 150 percent of the value of such donation. Valuation of assistance other than money shall

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Donation of IRRI to UPLB Page 2 of 2 r287--2018 2-27-2018

be based on the acquisition cost of the property. Such valuation shall take into consideration the depreciated value of property in case said property has been used:

XXX

"(d) The University shall only pay 0% value-added tax for all transactions subject to this tax; and xxx

In relation to this, Section 4 of the same law provides:

Sec. 4. The University System. - The University of the Philippines is a university system upon the recommendation of the President of the University. The University of the Philippines System is composed of its existing constituent universities, as follows: the Philippines Los Banos; University of the Philippines Visayas; University of the Open University; and those that may be created in the future. It is referred to in this law as the "National University." and shall be composed of constituent universities established solely by its Board of Regents University of the Philippines Diliman; University of the Philippines Manila; University of Philippines Mindanao; University of the Philippines Baguio; University of the Philippines

Donor's Tax. UNIVERSITY OF THE PHILIPPINES are exempt from Donors' Tax: The UNIVERSITY OF THE PHILIPPINES LOS BANOS being a constituent university of the UNIVERSITY OF THE PHILIPPINES, the donation of a 1991 Toyota Hi-Lux Pick-up by IRRI to it is exempt from In reply, please be informed that gifts and donations of real and personal properties to the

ad valorem tax (excise tax), thus, subsequent transfers are subject to both the VAT and excise tax. However, Section 25 of Republic Act No. 9500 also exempts UNIVERSITY OF THE PHILIPPINES LOS BANOS, from excise tax and imposes VAT at zero-percent. It should be noted that the purchase of the vehicle was previously exempted from VAT and

of P15.00 imposed under Section 188 of the same Code. (BIR Ruling No. 024-10 dated August 4, 2010) Lastly, the acknowledgment on the Deed of Donation is subject to documentary stamp tax

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, if

Very truly yours, x3am10

CAESAR R. DULAY

Ki-NrA Commissioner of Internal Revenue 013765