BIR Ruling No. 434-2017

RIPUBIOIHFPHIIPIINFS

BUREAU OF INTERNAL REVENUE IIPARTAFNT O FINANGT

Quezon City

Section TOT(A)(2) of the BiR Ruling No. 311-2014 Nationat Inicrnal Revenuc Codc of 1997. as amended: 43.-207

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Poblacion, Carmona. Cavite Carmona Municipal Hall, Loyola St.. OFFICE OF THE MAYOR

Attention: DR. DAHLIA A. LOYOLA Municipal Mayor

Madam:

Octobcr 07. 2015. requesting exemption from payment of donor's tax on the donation DEVEL'OPMENT AUTHORITY (hereinafter referred to as the "DONOR") in favor of the MUNICIPALITY OF CARMONA,CAVITE (hereinaftcr referred to as the "DONEF">. Of a This refers to your Ictter dated October 01. 2015. reccived by this Officc on parcelof Iand made bctween the METROPOLITAN ManILa

Makati City. is a duly organized government entity. constituted and created pursuant to R.A. No. 7924: that it is the registered owner of a parcel of land covered by T'ransfer squarc meters. more or less; that on the other hand. the DONEE. with Taxpayer 2009. the D0NOR. represented by its then Chairman Iion. Bayani [. Fernando. of ihe land covered by Transfer Certificate of Title (TC'T) No. an area of Six Hundred Fifty Nine Thousand Ninc hundred Eighty Four (659.984) Hall. J.M. Loyola St.. Carmona. Cavite, ts a iocal government unit: that on July 14. described as follows: Certificate of'Title (TCT) No. Identification Number(TIN) executed a Decd of Donation in favor of the DONEE, represented bv its then Municipal Maor. Hon. Roy M. Loyola. conveying to thc tatter ten (10) hectares of land. a portion covered by It is represented that the DONOR with Taxpayer Identitication Number (TIN) and with principal address at EDSA Corner. Orense St.. Guadalupe. of the Registry of Deeds for the Province of Cavitc. particularly of the Registry of Deeds of Cavite, containing and with principal address at Municipa! and now

TRANSFER CERTIFICATE O)F TITLE (T(T) NO

(100.000) SO. METERS. being a portion of Lot 1, Psd-5399. L.R.C. Rec. No. Brp:. Sitio Paligawan, Matanda, Mun. of Carmona. I'rov. Of Cavite. Bounded on . "A parcel of land (Lot 1-B-2. of the suhd. plan, Psd- containing an area of ONE HUNDRED THOUSAND Situaied tn

in the samc instrument. and that the DONEE accepted the donation under the conditions set forth as embodied

Revenuc Code of i997. as amended, provides that: In reply. please he informed that Section 101 (A) (2) of the National Internal

DR. DAHLIA A. LOYOLA 9-5-2017 m2017

donations shail he exempt from the tax provided for in this Chapter: "SFC. Iol. Exenption of Certain Gifts. - The following gifts or

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

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Government, the aforementioned donation of a parce! of land is exempt from the Code of 1997. as amended. MUNICIPALITY OF CARMONA,CAVITE, which is a political subdivision of the payment of donor's tax pursuant to Section 101 (A)(2) of the National Internal Revenue In view of the foregoing. sincc thc donation is made to or for thc use of the

of the same Code. (BIR Ruling No. 311-2014 dated August 4, 2014) connection with a sale, to trustees or other persons without consideration are not prescribed under Section 196 of the National Internal Revenue Code of 1997. as ainended, but only to the documentary stamp tax of P15.00 imposed under Section 188 Documentary Stamp T'ax Regulations, implementing T'itle VIl of the National Internal Revenue Code of '1997. as amended. provides that conveyances of realties not in taxable. Accordingly, the Deed of Donation is not subject to the documentary stamp taN Moreover, Section 1 85 of Regulations No. 26. otherwise known as the Revised

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

Very truly yours.

Commissioner of Internal Revenue CAESAR R. DULAY

TK-I-I.MAT CELIA C.KING Cuwic.

Deputy Commissioner Resource Management Group

Officer-In-Charge

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