BIR Ruling No. 337-2016

RIPUBLICOETHF PHHLIPPINES

DEPARTMENT OF FINANCE

BUREALOFINTERNALREVENUE Quezon City

Sec.101A2.Tax Code of 1997

BIR Ruling No.415.2013 BIR Ruling No.298-2012

#337-2016

6-9-016

Date

ROLANDO P.MONTIEL

General Services Department Quezon City Official Property Custodian

Quezon City Hall. Quezon City

Si:

This refers to your letter dated 22 October 2013 requesting exemption from donor's tax and documentary stamp tax on the donation of six (6 parcels of land registered under

the name of Mr.Bienvenido A.Tan Jr.in favor of the Quezon City Government.

Documents submitted show that Mr. Bienvenido A.Tan Jr.is the registered owner of the following properties:

Title Number Area (m2) Location

400 40 Quezon City Quezon City

1.973 40 40 252 Quezon City Quezon City Queron City Quezon City

On 26 October 2009,Mr. Bienvenido A.Tan Jr.executed a Deed of Donation transferring,ceding.and convey ing.by way of donationthe aforementioned tands in favor of the Quezon City Government. including all rightsinterest, and titles of the former thereto.Feliciano Belmonte,then mayor of the Quezon City Government.accepted the donation under the authority of the Quezon City Council,through Resolution No.SP-463 dated 3 August 2009.

In reply.please be informed that Section 101(A2of the Tax Code of 1997 provides that:

gifts or domaions shall be exempt from the tox provided por in this Chapter SFC101.Exemption ofCertain GiThe following

042341

DonaticaOf Real Properties to Quezon City Government 4337-2026 6-29-2016

Page 2 of 2

In the Case of Gifis Made by a Resident. ( 2Gifis made to or for the use of the National Government or any entity created

by amv of its agencies which is not conducted

for profit, or to any political subdivision of the said Governmentand

XXX XXXXXX"

Inasmuch as the donee is a political subdivision of the National Government, and

the real properties donated by Bienvenido Tan shall be devoted by the donee for public use

and/or socialized housing project, the aforesaid donation is exempt from the payment of

donor's tax pursuant to Section 101(A2 of the Tax Code of 1997.as amended.(BIR

Ruling No, 415-13 dated November 13, 2013)

Moreover, the Deed of Donation is not subject to the documentary stamp tax. However, the notarial acknowledgment on the deed is subject to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997, as amended.

If the donor is a valued-added tax (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 No.16-2005,the same being considered a transaction deemed sale.If the donor is not a VAT registered person, the donation is exempt from VAT.(BIR Ruling No.298- 12 dated May 3.2012

Lastly.the Register of Deeds shall annotate the Deed of Donation Inter Vivos at the back of the TCT because failure to comply with particular terms therein shall be a ground for the revocation of the donation pursuant to Article 764 of the New Civil Code.

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 as null and void.

Very truly yours.

KIM S.JACINTO-HENARES

K1-JHB Commissioner of Internal Revenue 042341 JUN z 4 2016