Sie sind auf Seite 1von 58

Atty.

Israel Lay-at By Edwin Siy


Donor’s Tax is a tax on a donation or
gift, and is imposed on the gratuitous
transfer of property between two or
more persons who are living at the time
of the transfer. It 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.
Mean in equal money or in
money’s worth of some goods
or services capable of being
evaluated in money
For love and affection, or for
services rendered
It has no economic value
Gifts may be real or personal properties.
Personal may be tangible, intangible or
mixed.
Inclusions:
• Citizens or residents: all properties within
and without
• Non-resident alien:
- all real and tangible properties within, and
- intangible personal properties, unless there
is reciprocity.
 The net economic benefit from the
transfer that accrues to the donee.
 Accordingly, if a mortgaged property
is transferred as a gift, but imposing
upon the donee the obligation to pay
the mortgage liability, then the net
gift is measured by deducting from
the FMV of the property the amount
of mortgage assumed.
A gift occurs when the donor surrenders
CONTROL over the property. If the
donor retains an unlimited power to
revoke the gift, it is clear that no gift
has occurred.

 Referto Section 24(D) and Section


27(D)(5) of the NIRC).
 DONOR- the person who
gratuitously disposes of
his property or right
 DONEE- the person who
receives and accepts the
property or right being
donated.
 DONATION MORTIS CAUSA- one
which takes effect upon the death of the
donor. This is similar to a transfer in
contemplation of death, and in the
nature of a testamentary disposition
which is subject to estate tax, not to gift
tax.
 DONATION INTER VIVOS- gifts made
and intended by the donor to take effect
during his lifetime and therefore subject
to donor’s tax, not to estate tax.
Ms. Tan donated her real
property to Mr. Lim which
will take effect upon the
death of Ms. Tan.
Is this subject to Estate tax
or Donor’s tax?
Sincethe transfer will
take effect upon the death
of Ms. Tan then this
serves as a testamentary
disposition and therefore,
subject to ESTATE TAX.
Mr. Lim gave a diamond
necklace as a gift to Ms. Tan
who immediately accepted
the gift.
Since the donation took
effect while the donor and
donee are still alive, this is
subject to donor’s tax.
1. Before September 1, 1969 - Only
donation made by individual is
subject to donor's tax.

2. On or after September 1, 1969


(RA 6110) Donation made by all
person, whether natural or juridical,
is subject to donor's tax.
 DONATION OF PERSONAL
PROPERTY may be made
orally or in writing, except
when the value of the donated
property exceeds P5,000, in
which case, the donation and
the acceptance must be in
writing.
DONATION OF REAL PROPERTY
must be in a public document to be
valid, specifying therein the property
donated and the value of the charges
which the donee must satisfy. The
acceptance by the donee may be made
in the same deed of donation or in a
separate instrument, and done during
the lifetime of the donor.
 Capacity of the Donor-
 Donative intent or the donor’s
intent to make a donation
 Delivery of the gift, actual or
constructive, of the subject
matter of the donation
 Acceptance of the gift by the
donee.
Refers to the condition and legal
capacity of the donor to enter a
valid contract
Donor – must be in capacity
Donee - need not be capacitated
to receive the gift to make the
donation valid provided he must
have a duly authorized
representative.
Jack Taylor, a capacitated
philantropist, donated 1M in
behalf of a mentally
retarded child. The child is
represented by his parents to
accept the donation.
Is the donation valid?
Yesbecause donor is
capacitated and the
acceptance is made by the
authorized representative.
Refers to the proper
declaration of the legal owner
of a property or right to transfer
ownership to another without
consideration
Such intent followed by a
donative act is essential to
constitute a gift especially in
cases of direct donation.
Verbally – where the value of
the personal property
(movable) donated is P5,000
or less, the donation can be
made orally. An oral donation
requires simultaneous
delivery of the thing or of the
document representing the
right donated
In Writing – value of personal
(movable) property exceeds
P5,000; otherwise donation is
void.
In PUBLIC INSTRUMENT –
immovable property donation to
be valid it must be made in
public document (deed of
donation) specifying therein the
property donated
DONATIVE INTENT is
required only in a direct gift
But if a gift is indirect by
way of sale, exchange or
other transfer of property,
donative intent is not
necessary
 Object of donation : real property,
personal property or even rights
 Delivery of the object : constructive or
actual
 The delivery made be made to a trustee
 The completion of the gift = requires
delivery of the subject matter of the gift;
 If physical delivery is impossible, delivery
of the instrument of assignment or deed
The donee must accept
the donation personally
or through an authorized
person with a special
power for that purpose
 Mr. Tan donated the following properties for
the year 2010:
Jewelry as a birthday gift to his
mother-in-law P 5,000
Land donated to a domestic corp. 100,000
Car given to his son as a wedding
gift 200,000
1. WHO ARE THE DONEES?
2. STATE THE RULES for
each donation
Jewelry amounting to P 5,000.
The gift can be orally donated
with simultaneous delivery of
the donee.
Car given to his son exceeds
P5,000. Hence, should be in
writing to be a valid donation.
Land with a value of
P100,000 should be in
writing
Donation of real property
should always be in writing ,
regardless of value, to be
valid.
The donor’s tax applies to both natural
and juridical persons. Every donation
between husband and wife during the
marriage is declared void by law, except
donation mortis causa and moderate gifts
which the spouses, on the occasion of any
family affair, may give to each other. Gifts
coming from the conjugal property made
by both spouses are taxable, on half to
each donor spouse.
Where the property is transferred for less
than adequate consideration in money or
money’s worth, the amount by which the
value of the property exceeds the amount
of consideration shall be deemed a gift for
purposes of the donor’s tax. The gift tax
will apply regardless of whether the
transfer is in trust or not, direct or
indirect, real or personal property is
involved, tangible or intangible.
For a resident donor- real
properties, tangible and intangible
personal properties wherever
located.
For a non resident donor- real
properties, tangible or intangible
properties located in the
Philippines.
1. Real, intangible and tangible
personal properties or mixed,
located in the Philippines and
outside of the Philippines,
depending on the kind of donor.
2. Franchise which must be
exercised in the Philippines
3. Shares, obligations or bonds
issued by any corporation or
partnership, organized in the
Philippines in accordance with our
laws;
4. Shares, obligations or bonds issued
by any foreign corporations, 85% of
which is located in the Philippines
5. Shares, obligations or bonds
issued by any foreign corporation if
such shares, obligations or bonds
have acquired a business situs in the
Philippines
6. Shares or rights in any
partnership, business or industry
established in the Philippines.
1. Dowries or gifts of parents on
account of marriage made before
the marriage or within one year
thereafter, in favor of the
legitimate, recognized natural or
legally adopted children to the
extent of the first P10,000.
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.
3. Gifts in favor of an educational
and/or charitable religious,
cultural or social welfare
corporation, institution, accredited
NGO’s xxx, provided that not more
than 30% of said gifts shall be
used for administration purposes
by such donee.
4. Those specifically provided by
the donor as a condition of the
donation which will diminish the
value of the property received by
the donee.
5. Encumbrances on the property
donated if assumed by the donee
in the deed of donation
6. Exempt donation under
special laws.
1. Gifts, contributions, donations to
social welfare, cultural, or charitable
institutions, no part of the net income
of which inures to the benefit of any
individual, if not more than 30% of
said donation shall be used for
administrative purposes. (Presidential
Decree 507)
2. Gifts, contributions, donations to
the government for purposes of
scientific, engineering and
technological research, invention and
development
3. Gifts, contribution, donations to any
international civic organization for
religious or charitable purposes,
provided that said donations shall be
for its use, or to be distributed for free
and not for sale or barter;
4. GCD to the Aquaculture Department
of the Southeast Asian Fisheries
Development Center of the Philippines,
Internationl Rice Research Institute.
5. GCD to the IBP, Phil-American
Cultural Foundation, Phil. Investors
Commission, Task Force on Human
Settlement on the donation of
equipment, materials and services.
Exemptions are not to be
treated as exclusions but
they partake as deductions
and therefore, deductible
from gross gifts in order to
arrive at taxable net gifts.
1. On or before December 31, 1972:
a) Donor's and donee's gift taxes were imposed
based on graduated rates.
b) Gifts made during previous year or years are
collated to the present gift and the gift tax computed
on the total gift.

2. January 1, 1973 to January 15, 1981 (PD 69)


a) Donor's tax was imposed on graduated rates.
b) Gifts made during the previous year or years are
computed separately.
c) Donor's tax computed on the total gifts made
during each calendar year.
d) Collation of gifts are made only on gifts made
during the same calendar year.
3. January 16, 1981 to July 27, 1992 (PD 1773)
a) Tax payable by the donor in favor of relatives
are computed based on the graduated rates.
b) Tax payable by the donor in favor of stranger
is computed at 20% or based on graduated rates,
whichever is higher.
c) Gifts made during the same calendar year are
collated and the donor's tax computed on the total
gifts during the calendar year.

4. July 28, 1992 to December 31, 1997 (RA 7499)


a) Tax payable by the donor on gifts made in
favor of relatives is computed based on graduated
rates.
b) Tax payable by the donor on gifts made in
favor of strangers is computed at 10% of the net
gifts.
5. January 1, 1998 to present (RA 8424)
a) Tax payable by the donor on gifts
made in favor of relatives is computed
based on graduated rates.
b) Tax payable by the donor on gifts
made in favor of strangers is computed at
30% of the net gifts.

6. Relatives for donor's tax purposes:


a) Spouse, ancestor and lineal decedent
b) Brother, sister (whether by whole or
half blood)
c) Relatives by consanguinity in the
collateral lines within the fourth degree of
relationship.
a) Donations to Relatives (Graduated Table)
THE DONOR’S TAX OF EXCESS

SHALL BE PLUS OVER

Exempt

0 2% P100,000

2,000 4% 200,000

14,000 6% 500,000

44,000 8% 1,000,000

204,000 10% 3,000,000

404,000 12% 5,000,000

1,004,000 15% 10,000,000


b) Donations to Stranger - 30%

 For purposes of the donor's tax, a "stranger" is a


person who is not a:
(1) Brother, sister (whether by whole or half blood),
spouse, ancestor, and lineal descendant; or
(2) Relative by consanguinity in the collateral line within
the fourth degree of relationship.
 A legally adopted child is entitled to all the rights and
obligations provided by law to legitimate children, and
therefore, donation to him shall not be considered as
donation made to stranger.
 Donation made between business organizations and
those made between an individual and a business
organization shall be considered as donation made to a
stranger.
 Any contribution in cash or in kind to any
candidate, political party or coalition of
parties for campaign purposes, shall be
governed by the Election Code, as amended.
 The application of the rates as provided above
is imposed on donations made beginning
January 1, 1998, which is the effectivity date
of Republic Act No. 8424, otherwise known as
“ The Tax Reform Act of 1997”.
1. Requirements (State the following
information/data):
a) Each gift made during the calendar year
which is to be included in computing net gifts;
b) Deductions claimed and allowable
c) Previous net gifts during the same calendar
year
d) Name of donee and address
e) Relationship of the donor to the donee;
and
f) Other pertinent information as the
Commissioner may require
2. Time of filing:
a) Before December 31, 1972:
1) On or before March 1 following the close of
the calendar year.
b) January 1, 1973 to December 31, 1997
1) Within thirty (30) days after each donation.
2) Extension not exceeding thirty (30) days
maybe granted.
c) January 1, 1998 to present
1) Within thirty (30) days after each donation-
No Extension

3. Place of filing of donor's tax return


a) Commissioner of Internal Revenue
b) Revenue District Officer, Collection Officer or
duly authorized Treasurer of the municipality
where the donor was domiciled at the time of
donation.
1. Donor's tax should be paid at the time
the return is filed or within thirty (30)
days after the date of gift.

2. Extension to pay tax may be granted


not exceeding six (6) months.
Effective January 1, 1998 (RA 8424),
no extension for the payment of the
donor's tax shall be granted.
C. Surcharges:
(Same as estate tax)
D. Interest:
(Same as estate tax)
. – In order to be
exempt from donor’s tax and to claim full deduction of
the donation given to qualified donee institutions duly
accredited by the Philippine Council for NGO
Certification, Inc. (PCNC), the donor engaged in business
shall give a notice of donation on every donation worth
at least Fifty Thousand Pesos (P50,000) to the Revenue
District Office (RDO) which has jurisdiction over his
place of business within thirty (30) days after receipt of
the qualified donee institution’s duly issued Certificate of
Donation, which shall be attached to the said Notice of
Donation, stating that not more than thirty percent
(30%) of the said donation/gifts for the taxable year
shall be used by such accredited non-stock, non-profit
corporation/NGO institution (qualified-donee
institution) for administration purposes pursuant to the
provisions of Section 101(A)(3) and (B)(2) of the Code.
 GROSS GIFTS P XXX
 LESS: exemptions xxx
 NET TAXABLE GIFTS XXX
 Multiply by tax rate %
 DONOR’S TAX DUE XXX
Thank You!
Atty. Israel Lay-at By Edwin Siy