y reasons why a person makes a gift during life, rather than by will, after to avoid estate taxes. Another reason is to have absolute assurance that ;donee receives the gift. The only way for a donor to be absolutely certain ended donee receives a gift is for the donor to make the gift directly to the juring life. ‘ed, donation is an act of liberality whereby a person disposes gratuitously in favor of another, who accepts it. The person who disposes of the led the donor while the one who accepts itis the donee. defin cor right right is cal es, there is donation when a person gives to another a thing, of ‘ts or on account of the services rendered by him to te a demandable debt. When the giftimposes given, there is also a or’s tax purpos ‘ount of the latter's meri they do not constitu urden which is less than the value of the thing donor, provided nthe donee 2 b a donation of property, and does not ’s tax purposes, must be facial) or a donation of a right to use ion, for dono fe a donation of personal service (eg., fi (eg., parking space). n, Source: BIR Ruling 105-99, July 13, 1999 half of the heirs of the late Antigono A. Rosil. .d by his wife, Antonina and three (3) legitimate otal amount of P153,478.01. An extrajudicial hildren in favor of their mother, Antonina. fando S.Rosil wrote the BIR on July 2, 1999 on b @ will on April 16, 1999 and was survives is estate consists of bank accounts in the t ith waiver of rights was executed by the three that the P153,478.01 bank account is not subject to estate tox it being less than P200,000 ion 84 of the Tax Code of 1997. As to the share waived by the three (3)children, should it. from donor's tax?ice of the do! knows of the accePtane donation shall take effect 3 thou Bey Peal vot be delivered until after , sh the property st FP vives: ae sate of the PLES from he Petre donation, shall’pertain to the donee a .cklace as a symbol of his love Mlustration: Eric gave Barbara a heart-shaped " Barbara happily accepted anc This is a gift or donation because there is no consideration oe va ia 10 3° a Barbara, The donation is inter vivos because it takes effect during the lifetime g 4 donor and the donee. 4 es BeratoRe mortis causa are donations which are to take effect upon the deathgy a donor and partake of the nature of testamentary provisions governed by the d established in the Title on Succession under the Civil Code. z Illustration. Source: BIR Ruling 081-98, Moy 28, 1998 " | r ‘Yvonne gave, transferred and conveyed a certain real property to Marijo, her sister. The deed of dont, ‘ provides for the following conditions: : +L That the donation shall produce effects only by and because of the death of the donor, the papa) donated to pass title after the donor's death. 1 4 2. That the donor reserves the right to amend or cancel the donation at any time during her lifetime, Marijo accepted the gift subject to the above conditions. : 5 nike Per This donation is mortis causa in substance. The donation shall not be subject to donor's tax. The which was intended to take effect upon the death of the donor partake of the nature of testa All provisions and the same shall remain part of the donor-decedent's gross estate at the time of her This is a transfer in contemplation of death and shall be subject to estate tax. 198 | Transfer and Business TaxationMEE y's donation may com, Weheccok cre mprehend all th Shie' bis tea a aa a eserves, in full Seana aa et the rations, are by law entitled Be ee rhe Hetives woe ae the time of n, the donati ted by the i an, ee ena po ations €3 jend future property. By fi person affected. wiping which the donor cannot di 'y future property is understood By shal be annot dispose of atthe time of the donation. Donations Pee cacaliies of wis y the provisions on testamentary succession Donation is an act of liberality alth ; i }ough it may also be on " gonee’s merits or services not constituting a demandable debt or of a outdo vate jg less than the value of the thing given. In this case, donative intent is not at all essential. “formalities. The donation of a movable may be made orally or in writing. An ora donation requires the simultaneous delivery, actual or constructive, of the thing or afthe document representing the right donated. . if the value of the personal property donated exceeds five thousand pesos, the donation and the acceptance shall be made in writing. Otherwise, the donation shall be void. Inorder that a donation of an immovable may be valid, it must be made in a public document, specifying therein the property donated and the value of the charges which the donee must satisfy. The acceptance may be made in the same deed of donation or in a separate public document, but it shall not take effect unless it is done during the lifetime of the donor. Persons Who May Give or Receive a Donation persons who may contract and dispose of their property may make a donation. m. The donor’s Guardians and trustees cannot donate the property entrusted to the acity shall be determined as of the time of the making of the donation. @ Who are not specifically disqualified by law, therefore, may accept donations. {ity to succeed by will shall be applicable to donations inter viVOS. Minors and y become donees but acceptance shall be 10 cannot enter into a contract ma Donor’s Tax | 199>and and wife are considered as separate and distinct taxpayer's for purpo 's tax. However, if what was donated is a conjugal or community proj the husband signed the deed of donation, there is only one donor for dong Rurposes, without prejudice to the right of the wife to question the validity theation without her consent pursuant to the pertinent provisions of the Civil 'e Philippines and the Family Code of the Philippines. Husband and wife cannot donate any conjugal or community property without; Consent of the other. However, either spouse may, without the consent of the ot distress. Husband and wife may make a joint donation of conjugal or com Property. In this case and for donor's tax purposes, each spouse shall be considereg Separate donor of his or her interest in the property—one-half being the gift of y husband and the other half that of the wife. Mlustration. Source: Hordon H. Evono and Maribel C. Evono vs. Department of Finance, CIR and te Republic of the Philippines, CTA EB 705, June 4, 2012 In this case, to determine whether or not there is a donation, the, true intention of the parties musty ascertained. Records show that petitioners presented various contracts to prove that their children we also buyers in the sale of the subject properties. However, in order to determine the tax liablity foray transaction, not only the legal documents will be considered, but also some other external fadag surrounding the transaction, such as the capacity of the buyer in cases of transfer of properties. Thisisg preventive measure imposed to prevent avoidance of the legal tax due. It was alleged that there was no transfer of property from the parent to their children since they donstom the subject property, hence, the inclusion of their names in the CAR is not subject to donor's tax. Morea) it was claimed that the minor children used their allowance, which came from their parents, to purchaselle properties. In its decision, the CTA held that there is a clear “animus donandi” or intent to give when the names minor children who are not earning any income are included in the CAR and certificate of titles of the property. It held that while it is true that minor children can save money from their allowances and buy properties from their savings, considering the children’s age and the price of property, the children will be able to save a substantial amount, even if they receive enormous allowances from the pares Moreover, it is highly unlikely for an individual to own real property at such an early age and without? source of income; thus the CTA deemed the transaction to be a donation. 3 200 | Transfer and Business TaxationPhilippines Development Foundati a indation; onal Historical Institute; Force on Human Settlement consistin, i of . jlippine Red Cross. of 1998’ (R.A. 8525); ‘ose made between persons who were guilty of adultery or concubinage at the e of the donation; “Those made between persons found guilty of the same criminal offense, in ‘consideration thereof; ose made between the spouses during the marriage, except moderate gifts which .; may give each other on the occasion of any family rejoicing. ther as husband and wife without a valid the spouse ose made between persons living toge “marriage. 1ose made to a public officer or his wife, of his office. descendants and ascendants, by reason ition and Nature of Donor’s Tax transfer of property between .d, assessed, e gratuitous me of the transfer. It is levie of the property by gift. Stax or gift tax is a tax imposed on th I more persons who are living at the ti and paid upon the transfer by any person, Donor’s Tax | 201ated sinlt iS completed by the delivery, Pe ty to the donee. Thus, the law ion shall govern the imposition of the donor's €2%- Section 12 of RR 12-18 provides: ee that the donation of an immovable may bi ie Fee ene nos separate public document, oc tate 4 ae a ing the lifetime of the donor. If the acceptance is made in a separate instrument, the donor shall be notified thereof in an authentic form, and this step Ee be noted in both instruments. \ i Pane ea \ \ es Purposes of Donor’s Tax \ ; 8. 1. Donor’s tax supplements the estate tax. ‘Avoidance of estate tax is prevented by , | taxing donations inter vivos. ; ° 2. Donor’s tax compensates for the loss of income tax. Avoidance of income taxis done by splitting income among numerous donees to escape the effects of | 0 progressive income tax rates. \ \ \ \ \ \ \ \ 202 | Transfer and Business Taxationof libera whereby. a stone o1 ‘of another, who accents it er step ent thing or n who disposes of the thing or ri pte dsre ight is called the donee while the one who ation may be inter vivos in form but mortis causa in substance, jeceptance of an immovable property may be made in the same deed of jon or in a separate public document, but it shall : sep , not take effer it fone during the lifetime of the donor. : ne jee r jor’s tax is a tax imposed on the gratuitous transfer of property between two or ore persons who are living at the time of the transfer. ‘Donor’s tax supplements the estate tax and compensates for the loss of income tax. 3, All persons who may contract and dispose of their property may make a donation. o person may give or receive, by way of donation, more than he may give or eive by will. ‘oteee eo wane s another «yin to the donor prtced hey oo ak by here ete to another a thing or right on account the gift ime cone" constituting a demandable debt. thing. ae upon the donee a burden which is less than the val 2. Which is not true? An ordi erat donation may comprehend all the present property of the fublect to no limitation. Bonations cannot comprehend future property. y future property is understood anything which the donor cannot dispose gf : the time of the donation. | Donations of future property shall be governed by the provisions testamentary succession and the formalities of wills. b. © 3. Donations are subject to formalities? Which is not true? The donation of a movable may be made orally or in writing. b. If the value of the personal property donated exceeds five thousand pesos, th donation and the acceptance shall be made in writing; otherwise, the donation » shall be voidable. ‘An oral donation requires the simultaneous delivery, actual or constructive, the thing or of the document representing the right donated. In order that a donation of an immovable may be valid, it must be made ina public document. 4. Which is not true about giving and accepting a donation? Guardians and trustees cannot donate the property entrusted to them. a. b. Minors and others who cannot enter into a contract may become donees but acceptance shall be done through their parents or legal representatives. ¢c. Donations made to conceived and unborn children may be accepted by those persons who would legally represent them if they were already born. d. Donations made to incapacitated persons shall be voidable, ‘though simul under the guise of another contract or through a person who is interposed. 204 | Transfer and Business Taxationilippine Inventor’s Commission ional Social Action Council Fi n Hi i rask Force or luman Settlement consisting of equipment, materials and jices " pinibining Pilipinas Organizers ynich is not a void donation? z, Those made between the spouses during the marriage, except moderate gifts which the spouses may give each other on the occasion of any family rejoicing. Those made between persons living together as husband and wife without a —yalid marriage. Those made to a public officer or his wife, descendants and ascendants, by reason of his office. 4, Those made between childhood sweethearts. 8, Which is not true about donor's tax? Donor's tax is levied, assessed, collected and paid upon the transfer by any person, of the property by gift. b. Donor's tax is synonymous to estate tax. The donor's tax shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible. d. Donor’s tax is an excise (privilege) tax privilege of the donor to make a gift. 2 because it is a tax imposed on the right or Donor’s Tax | 205| Transfer and Business Taxation+ odie stedoty La Non-Re: it tc ai i ian eee Alien Donors. The gross gift of a rt J resident ali i wherever situated. The following shall pad eter’ oy Weiter ‘or immovable property. These consist of land, buildi jand, ‘i soil with permanence. nd, building or anything attached to ible personal property. Personal property that can be seen and touched. erie persons! property. Personal property that cannot be seen and touched. is includes: Franchise which must be exercised in the Philippines; Shares, obligations, or bonds issued by any corporation or sociedad anonima anized or constituted in the Philippines in accordance with its laws; org Shares, obligations or bonds issued by any foreign corporation 85% of the business of which is located in the Philippines; : "Gi Shares, obligations, or bonds issued by any foreign corporation is such shares, obligations or bonds have acquired a business situs in the Philippines; and Shares or rights in any partnership, busi Philippines. iness or industry established in the lassified as capital asset is transferred for less than money's worth, then the amount by xceeded the value of the consideration the amount of gifts made Where a personal property cl _ adequate and full consideration in money © i lich the fair market value of the property e? hallbe deemed a gift, and shall be included in computingei Transfer for Less Than Adequate and Full an on than real property referred to in Section © am lequate and full consideration in money OF ; ‘unt by which the fair eae re property. ‘exceeded the value of th Consideratior .d by this Chapter, n shall, for the purpose of the tax imposes dete deemed a git, and shall be inclued in computing he 2 of a what a sale, exchange, OF other during the calendar year: Provided, however ence transfer of property Deane orinay coucectoe ee 3 aoa which is a bona fide, at arms length, and free from avy done pias considered as made for an adequate and full consideration 19 ney's worth, if Gain se Selling Price 185,000 Market Value 250,000 Less: Consideration 185,000, oe Cost ___125,000_ Deemed Gift P_ 65,000 Gain fair market value of the jewelry sold and the dy of P65,000 is deemed donation or gift. in or while buyer Faye the donee. The = The difference between the consideration received by Cin this case, seller Cindy is the don: donation is subject to donor's tax. = The jewelry is a personal property classified as capital asset. For income tar purposes, only 50% of the gain of P60,000 shall be taken into consideration because the seller is an individual and because the capital asset has bee held for more than 12 months. Non-Resident Alien Donor. If the donor was a non-resident alien, only his propett located in the Philippines shall form part of his gross gift. The inclusion of intangible personal property located in the Philippines in the gross eft of a non-resident alien donor is subject to reciprocity rule. Such intangible pel property shall not be included in the following cases: 4, Ifthe donor at the time of his donation was a resident of a foreign country which at the time of donation did not impose a transfer tax of any character in respect of intangible personal property of citizens of the Philippines not residing in that foreign country: on 208 | Transfer and Business Taxation eset ft vyalua if the be co amot mark Asse illus thesount between the fair market value as determined by the Commissioner, or the fair value as shown in the schedule of values fixed by the Provincial and City House and lot in the Philippines 1,500,000 Car in the Philippines 500,000 Bank deposit in Japan 800,000 Shares of stock in Japan 300,000 Copyright used in the Philippines 400,000 ompute for the gross gift of Mr. Kata if he is a: ipino residing in the Philippines. Panese residing in Japan, with reciprocity. lese residing in China. Bro S gift of Mr. Kata being a resident citizen ‘of the Philippines consists of all his ty wherever situated, or a total of 3,500,000. 1 Donor’s Tax | 20999, jet allen, His B°OS5 Bit wl eg sanese residing 19 JaPan (ON -Tesident espen) shall consist Only of his p : . 7 where = consider The reciprocity rule may i ar aisgrestentandeitien Ee ae wee Philippines. When there 17 pon-resident jiien donor is not subject yee) | Mall for located pul Bee sarose Butts shown below 7 | fi The inc ouse and tot inthe Philippines ; ee Carin the Philippines ' ie Total e \ foreig Boreciess ire of Mi. Kote, BENE © Japanese residing in China (non-resident jen, | allow ” the Philippines while non-resident ies or gifts made on account of marriage and before its celebration or within ar thereafter by parents to each of their legitimate, recognized natural, or ed children to the extent of the first P10,000. Jn this case, each spouse’s share as gross gift in the conjugal (or community mroperty) shall be one-half of said property. Each spouse is entitled to the P10,000 cemption. e co-owners of conjugal property. Thus, a gift made by the spouses erty shall be deemed separate donations by the husband and the their respective interests. There will be two donations made The spouses ar ‘of conjugal prot wife in proportion to and two separate computations of donor’s taxes. Mr. & Mrs. Santillan gifted their son Peter with a house and lot on istration: e house and lot has a fair market ccount of his forthcoming marriage to Arielle. Th jalue of P3.5 million at the time of donation. Mr. Santillan Mrs. Santillan Gross Gift P1,750,000 Gross Gift P1,750,000 Exemption Exemption 10,000 Net Gift Net Gift P1,740,000 ofitsmade to or for the use Goverment of the National G¢ any of its agencies which is not uatenae Bee oe Of the said Government; : isk Reduction and Manag, n its receipt of food, Under Republic Act 10121, the National Disaster Ri Council (NDRRMC) i fax OF _ IC) is exempt from donor's t oe medicine and equipment for relief and recovery and other disaster manage The and recovery-related supplies. stoc priv Mlustration: Mr. Tan, well-known for his generous heart, Sonate ee 54. mete iar lot to San Juan City to be improved as a public park. At Sees onaton, the : par nas o fair tr ecoale@tor e30nd) The full amiount of the Btft = exc™PE (Bll Illustration, Source: BIR Ruling 056-99, Apr. 23, 1999 Af ign Affairs (DFA) wrote the BIR o S Asst. S ‘Ofelia B. Castano of the Department of Foreign A Mar, Fees as aPaN Hie) (haUnifed states mbosey In favor ofthe Central Revord> DWvaion alga us 2 ‘The BIR replied that since the donee isa political subdivision of the Government, the aforeme Fre en ata vehicle, ts exempt from the payment of donor's tax pursuant t0 Section 101.42 3g r Tax Code of 1997. ; 3. Gifts in favor of an educational and/or charitable, religious, cultural or social welfare ; corporation, institution, accredited non-government organization (NGO), trust « = philanthropic organization or research institution or organization, provided that na ‘ more than 30% of said gifts shall be used by such donee for administration purposes. Non-profit educational and/or charitable corporation, accredited NGO, trust philanthropic organization and/or research institution or organization \s @ chad, college or university and/or charitable corporation, accredited NGO, trust o philanthropic organization and/or research institution or organization, incorp. as a non-stock entity, paying no dividends, governed by trustees who receive ® compensation, and devoting all its income, whether students’ fees oF fs donations, subsidies or other forms of philanthropy, to the accomplishment i promotion of the purposes enumerated in its Articles of Incorporation (AO). . 214 | Transfer and Business Taxation athe Register of Deeds shall annotate this pen pect the failure to comply with this condition shall pati 'or’s tax. If the same property is subsequently donated on-exempt donee, the donation shall be subject to donor's in es) tax (BIR Ruling ‘at the back of the TCT/OcT; transfer by 2 private corporation in favor of the Government of its shares of in a construction joint venture company, by reason of the expiration of the ate corporation's franchise, is not subject to CGT, donor's tax and DST. The insfer is not subject to donor’s tax because there is no intention to donate on the part of the company as the transfer was made in compliance with court decisions iain Ruling 058-13, Feb. 1, 2013). ‘foundation can receive and transfer donations from foreign sources as provided in its AOI (SEC-OGC Opinion 11-47, Nov. 25, 2011). Under the IRR of Republic Act 10165, otherwise known as the Foster Care Act of 2012, agencies’ can apply for qualification as donee institutions (Rule 24). Donors of an agency shall be exempted from donor's tax under Section 101 of the NIRC; provided, that not more than 30% of the amount of donations shall be spent for administrative expenses (Rule 25). ‘4. Encumbrance on the property donated, if assumed by the donee; Illustration: Raffy gave his brother, Andrew a parcel of land as a birthday present. _ At the time of donation, the property has a fair market value ‘of P500,000 and is subject to mortgage of P100,000. Andrew assumed the mortgage. Gross Gift 500,000 Exemption (mortgage assumed) 100,000 Net Gift 400,000 Donor’s Tax | 215216 | Transfer and Business Taxationb. P2 million ¢. P1 million uch must be included mi 95 part of Mrs. Samonte’s gross gift? 4 million ~b. P2 million ¢. Pl million d. PO Js Mr. Samonte entitled for an exemption? If so, for how much? a, P20,000 b. P10,000 c. P5,000 4. PO if Mrs. Samonte is entitled for an exemption, then for how much? b. P10,000 Be 20,000 c. P5,000 d. PO 5, How much is Mr. Samonte’s net gift? a, P4 million b. P2 million ¢. PL million d, P990,000 6. How much is Mrs. Samonte’s net gift? a, P4 million b. P2 million c, P1 million d. P990,000 ‘Mr. Romero, a philanthropist, donated a 1,000 sq. meter lot to the City of Paranaque to 'set up as a basketball/volleyball court. The lot has a cost of P2 million and fair 3. PS million b. P2 million c. Pi million d. PO Donor’s Tax | 217ates abate me time ota oicaaae 2 ortgage, “tion, It has a fair tv Ee 8 10 Veg ee : pane gift? E | ch must be included as part of Don Pepe's 08° ; ; : “ a 5 ‘i d. 150,000 i | ‘50,000 b, P600,000 Var / | Sear low much of the gross gift is exempt? 4 z, 4 Be Sheers BPE OS cc. PA50,000 d. P150,000 } | 12. Don Pepe’s net gift is | 18. Aree Bebo e00 cc. P450,000 d. P300,000 ‘Andrea gifted Angela with a diamond Happy with how her sister's career is going, however asked Angela to dona, 19. worth P200,000 plus cash of P150,\ 000. Andrea, P50,000 cash to Mary, The Queen Parish. Angela agreed. 1 : 13. How much must be included as part of Andrea’s gross gift? (20. a. P50,000 b. P200,000 c. P300,000 d. P350,000 14. How much of the gross gift is exempt? a, P50,000 b. P200,000 c. P300,000 d. P350,000 15, Andrea's net gift is a. P50,000 b. P200,000 c. P300,000 d, P350,000 218 | Transfer and Business Taxation eats at Rin wants 25% of his gift to son donated to Bantay Bata raid tton sm no. 1, how much exemption is allowed? p510,000 b. P500,000 . P10,000 d. PO item no. 2, how much exemption is allowed? b. P500,000 c. P10,000 cc. P10,000 d. P75,000 a. P100,000 Total gross gift is? a. P2.8 million b. P2.3 million c, P800,000 d. P300,000 Total exemption is? a. P1,085,000 —_—b. P1,075,000 _—_«. P500,000 d. P75,000 l. Net gift is? c. P2.3 million d. P272,500 _ a. P1,715,000 b. P1,725,000 Donor's Tax | 219shall be levied, Be or Ra rreciicat Sor the cea and ald upon the transfer by ay Berrie js'ih trust or ctherwie hate an ee ust or otherwise, whether the gift is direct or indi ee property is real or personal, tangible or intangible onindiect ane y's tax is an excise tax on the transfer of property. It is not a tax Fi property the subject of the gift, although it is measured by the value of that property. It the donor’s privilege to give. i nor’s tax is computed based on the net gift. Net gift is arrived at by subtracting fe gross gift exemptions or deductions allowed. Reg, 12-2018 ion 12 of RR 12-18 defines “net gift:” the donor's tax, “NET GIFT” shall mean the net economic benefit from t accrues to the donee. Accordingly, if a mortgaged property is ing upon the donee the obligation to pay the mortgage ibility, then the net gift is measured by deducting from the fair market value of the rty the amount of mortgage assumed. ‘computation of the donor's tax is on a cumulative basis over a period of one endar year. OW are pro-forma computations of donor's taxes for first and subsequent donationsene wn rete XXX, 4 [ess Donor’s Tax on All Prior Net Gift _2Xx_ ponor’s Tax on the Net Gift, This Date _»0% RATES OF DONOR’S TAX Anal ee : defined in no. 2 b ete hs donee is not a stranger (as defined in no. elow), the coy laws l ee Paes Beit ic Mordance with thelfaliowing Gauie (pre-TRaN). an 2 Ale legi But not Tax et over shall be Plus aa don F f P 100,000 | Exempt ~ Dor [| P_ 100,000 200,000 Pp 0 2% | t00mpp ind [ 200,000 500,000 2,000 4% 200,000 stre [500,000 1,000,000 14,000 6% 500,000 [1,000,000 3,000,000 44,000 8% 3,000,600 Sec [3,000,000 5,000,000 204,000 10% 3,000,000 to [5,000,000 10,000,000 404,000 12% 5,000.00 no [10,000,000 | and over 1,004,000 15% 10,000,000 adi for { Illustration: The net taxable gift is P100,000. This gift shall not be subi a donor's tax. Net giftup to the extent of P100,000 is exempt. i j ce Illustration: The net taxable gift is P850,000. The donor’s tax is 35,000. : Mh Donor’: i: nor’s Tax Due: Th On P500,000 P14,000 350,000 x 6% P850,000 2 | Transfer and Business Taxation 4;the definition of stranger, in-laws are strangers because the relationship ‘by marriage is not by consanguinity but by affinity. Hence, donations to in- , subject to the 30% rate. adopted child is entitled to all the rights and obligations provided by law to mate children, and therefore, donation to him shall not be considered as nmade to stranger. usiness organizations and those made between and ion made between bi tion made to a val and a business organization shall be considered as dona| jvidus r. ection 100 of the Tax Code and Section 7 of RR 6-2008 did not provide an exception ‘othe rule that where property, such as shares of stock in a Philippine corporation traded through the local stock exchange, is transferred for less than an equate and full consideration or their fair market value. Hence, there is no room interpretation. There is only room for application. The excess of the fair market le of the shares over the consideration received shall be deemed a gift subject to tax. BIR Ruling DA (DT-065) dated Nov. 27, 2009 is revoked (Revenue rorandum Circular 25-2011, Mar. 2, 2011; Metro Pacific Corporation vs. CIR, of Tax Appeals (Second Division) Case 8318, June 11, 2014). ition: Rodela gifted Haidee, her sister-in-law, a gold bracelet on her birthday. air market value of the bracelet is P30,000. Donor’s Tax Due: i Gross Gift 30,000 Less: Exemption : : Donor’s Tax | 223cae ‘on Elections (COMELEC) : spcion, Regala ‘and Cruz vs. Commissioner , ‘Law or RA 10963 ction 99(A) of the NIRC relative to the donor's tax r, in . i ne ‘The TRAIN Law amends Se in excess of P250,000 exempt gift; the 30% donors “js now at 6% uniform rate z ) Perisice is a stranger under section 99(8) has been repealed: bats ‘section 99. Rate of Tax Payable by Donor. ae Dona (a)in General. The tax for each calendar year shall be six percent eee computed on the basis of the total gifts in excess of Two hundred fifty thousang pesos (P250,000) exempt gift made during the calendar year. April : April <<< May Rev. Reg. 12-2018 | June Illustration: Donations were made on January 30, 2018 at P2,000,000; on March 30, zz 1,000,000; and on August 15, 2018 at P500,000. Sa | Donor's } E Date of Donation og | January 30, 2018 January 30, 2018 Donation 2,000,000 Less: Exempt Gift "250,000. _P4,750,000__P105,000 March 30, 2018 March 30, 2018 Donation 1,000,000 Add: January 30, 2018 Donation __2,000,000_ 'P3,000,000 Less: Exempt Gift 250,000 224 | Transfer and Business Taxation1,000,000 _ 'P3,500,000 250, ~P3,250,000_ 195,000, 185,000 _ Property Fair Market Donee Donated Value To Berna, daughter and Mario, her Resthouse in P_ 800,000 groom on their marriage last Jan. 25. Zambales To Phil. National Red Cross (PNRC) Cash 400,000 To the Province of Bulacan. Lotfor public 2,000,000 playground To Dina, Mrs. Polo's sister as gift for Apartment 700,000 Dina’s birthday. one unit To Mayor Reynes who is running for Cash 300,000 reelection. Cash 430,000 To Lito, Mr, Polo’s brother for topping the medical board exam. | On the one-unit apartment donated by Mrs. Polo to her sister, Dina has unpaid mortgage of the P430,000 cash given to Mr. Polo’s brother, Lito, Mr. Polo pointed out that P30,000 tbe donated to St. Paul, The Apostle Parish. ‘s tax payable by each spouse for last donation made within the year are Donor’s Tax | 225