& DONOR’S TAX: NATURE AND CONCEPT * Donation is an act of liberality whereby a person disposes of gratuitously a thing or right in favor of another (donee) who accepts it. It is a voluntary transfer of property from one person to another without any compensation or consideration thereof. = Donor’s tax or gifttax is a tax imposed on the right or privilege of the donor to make a gift. It is a tax on a donation or gift, hence an excise tax. TMD& Requisites of a Valid Donation ® Capacity of the Donor = Donative intent (except gifts under Sec. 100 NIRC) * Acceptance by the Donee Delivery of the gift to the donee either actually or constructively 4 A donor subject to tax may be a natural or juridical person. Properties, whether real or personal, tangible or intangible, including alienable rights, may be the object of donation. The discussion on estate taxation regarding the valuation of estates are also applicable to donor's taxation. TMD