Exemption of certain gifts.
Section 112
SEC. 112. Exemption of certain gifts. — The following gifts or donations shall be exempt from the tax provided for in this chapter: In the case of made by a resident: (1) Dowries or gifts made on account of marriage and before its celebration or within one year thereafter by parents to each of their legitimate, recognized natural or adopted children to the extent of the first ten thousand pesos. (2) 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; and (3) Gifts in favor of an educational and/or charitable or religious corporation, institution, foundation, trust or philanthropic organization or research institution or organization: Provided, however. That not more than thirty per centum of said gifts shall be used by such donee for administration purposes. For the purpose of this exemption, a non-profit educational and/or charitable corporation, institution, foundation, (rust or philanthropic organization and/or research institution, or organization is a school, college or university and/or charitable corporation, foundation, trust or philanthropic organization and/or research institution, or organization, incorporated as a non-stock entity, paying no dividends?, governed by trustees who receive no compensation, and devoting all its income, whether students' fees, or gifts, donations, subsidies or other forms of philanthropy, to the accomplishment and promotion of the purposes enumerated in its articles; of incorporation. In the case of gifts made by a nonresident not a citizen of the Philippines: (1) 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, and (2) Gifts in favor of an educational and/or charitable or religious corporation, institution, foundation, trust or philanthropic organization or research institution or organization: Provided, however. That not man- than thirty per centum of said gifts shall be used by such donee for administration purposes.