Lot donations tax exempt – BIR

June 6, 2017 at 8:09 am Leave a comment


By Mortz C. Ortigoza
DAGUPAN CITY – The Bureau of Internal Revenue said in case the donation of the lot for this City’s local government will be concluded, the donor will be exempted from paying taxes, as provided by law.
Assistant Revenue District Office-4 Chief Trina Villamil said Kerwin Fernandez, the donor of the 1.2 hectares of land in Pantal-Lucao Road, will not be paying the donor tax as mandated by the National Internal Revenue Code (NIRC).
Villamil, after consulting with Tax Supervisor Marinela C. Tandoc and Examiner Jeff A. Sajones, cited Paragraph 2 Section 101 of the NIRC which mentioned exemptions of certain gifts.
 “Gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government,” the Code says.
The BIR usually taxes by 30 percent the value of the donation or gift if the donor and donee are not relatives up to the fourth degree of consanguinity.
Relatives beyond that degree and other people are called by law as “stranger”.
 “When the donee or beneficiary is stranger, the tax payable by the donor shall be thirty percent (30%) of the net gifts,” Paragraph B, Section 99 of the NIRC says.
According to this City’s Councilor Netu Tamayo, Fernandez, the brother of Mayor Belen Fernandez, was willing to give a lot for the construction of the new city hall and government center.

“In today’s committee hearing, the land use committee of the Sangguniang Panglungsod, Dagupan City, found that the land sought to be donated is situated in Pantal Lucao Road which is prescribed as the situs of future government center in accordance with the Land Use Plan Ordinance which was duly approved in review by the Housing Land Use Regulatory Board,” Tamayo stressed.
The land sought to be donated, according to the lawmaker, is likewise sufficient in breadth and dimension to accommodate a new government center building.
“As to the request of the minority floor leader for the donor to extend the one year prescriptive time for the city to start construction of the government center, the proposed donor Mr. Kerwin Fernandez wish to be assured that his intention to contribute for the development of a government center be realized hence period cannot be extended as of time,” stressed by Tamayo.
The councilor hopes that the chairman of the committee recommends the approval of the ordinance to authorize the mayor to accept the donation.
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Entry filed under: News.

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