January 19, 2011

BIR RULING NO. 011-11

101 (A) (3);

BIR Ruling No. 452-93;
BIR Ruling No. DA-452-05;
BIR Ruling No. DA-028-98

Luz B. Victoria-Jose R. Mercado Memorial Foundation, Inc.

247 Anahaw St., Ayala Alabang, Muntinlupa City

Attention: Rev. Fr. Gabriel P. Mercado II

Gentlemen :

This refers to your letter dated September 28, 2010 requesting for tax
exemption on the donation by Ambassador Daniel C. Victoria, Jr. of his real
properties to Luz B. Victoria-Jose R. Mercado Memorial Foundation, Inc. (or
LBV-JRMMFI).

Documents submitted show that Daniel C. Victoria, Jr. (TIN 131-944-178)

is the registered owner of a house and lot located at 247 Anahaw St., Ayala
Alabang, Muntinlupa City described as Lot 10, Block 7 of the subd. plan
Psd-04-002263 with an area of seven hundred (700) square meters and as
evidenced by Transfer Certificate of Title (TCT) No. 29501 of the Registry of
Deeds for the City of Muntinlupa. On the other hand, LBV-JRMMFI (TIN
007-612-531-000), is a charitable non-stock non-profit association registered with
the Securities and Exchange Commission (SEC) under SEC Registration
Certificate No. CN201002244 dated March 17, 2010. On August 27, 2010, a Deed
of Donation of Real Property was executed by the donor transferring in favor of
LBV-JRMMFI the aforesaid land with the improvements existing thereon.

In reply, please be informed that gifts in favor of educational and/or

charitable, religious, cultural or social welfare corporation, institution, accredited
nongovernment organization, trust or philanthropic organization or research
institution or organization is exempt from the payment of the donor's 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 said gift shall be used by the
donee for administration purposes. (BIR Ruling Nos. 452-93 dated November 19,
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 1993) aCcEHS

Inasmuch as LBV-JRMMFI is a charitable organization, any donation to it

is exempt from the payment of donor's tax pursuant to the above provisions of the
Tax Code subject to the condition that not more than 30% of said gift shall be used
by the donee for administration purposes. In case of donation 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 be a ground for the revocation of
the donation pursuant to Article 764 of the New Civil Code. Section 185 of
Regulations No. 26, otherwise known as the Revised Documentary Stamp Tax
Regulations, implementing Title VII of the Tax Code, provides that conveyances
of realties not in connection with a sale, to trustees or other persons without
consideration are not taxable. (BIR Ruling No. DA-452-05 dated November 8,
2005)

Accordingly, the 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 Nos. 252-93 dated January 17, 1993 and
DA-028-98 dated January 29, 1998)

This ruling is being issued on the basis of the foregoing facts as

represented. However, if upon investigation, it will be disclosed that the facts are
different, then this ruling shall be considered null and void.

Very truly yours,

(SGD.) KIM S. JACINTO-HENARES

Commissioner
Bureau of Internal Revenue

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