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RTDG - ausl estate, donors, VAT, excise, percentage, doc stamp tax reviewer
ESTATE TAX
1. What transfer is subject to estate tax?
The transfer of the net estate of every decedent,
whether a resident or non-resident is subject to estate tax.
2. When does the estate tax accrue?
Estate tax accrues at the time of death of the
decedent.
3. Define estate tax
Estate tax is a graduated tax on the privilege of a
decedent to transmit property at death, and is based on the
entire net estate regardless of the number of heirs and
relation to the decedent.
4. When are properties and rights transferred to
successors?
The properties and rights are transferred to the
successor at the time of death of the decedent. (Art. 777,
CC).
However, despite the transfer of properties and rights
at the time of death, the executor or administrator shall not
deliver any distributive shares to any party interested on the
estate unless there is a certificate issued by the CIR that the
estate tax has been paid.
5. Who are the taxpayers liable to pay estate tax?
(1) resident citizen
(2) non-resident citizen
(3) resident alien
(4) non-resident alien
6. Distinguish Gross Estate from Net Estate
Gross Estate is the value of all the properties, real or
personal, tangible or intangible wherever situated, while Net
Estate shall include all the properties less the ordinary and
special deductions.
7. How is gross estate determined?
For Resident Citizen / Non-Resident Citizen /
Resident Alien Decedent, the gross estate is determined by
all the properties, real or personal, tangible or intangible
wherever situated.
For Non-Resident Alien Decedent, only those
properties situated in the Philippines, provided that in the
case of intangible personal property, its inclusion on the gross
estate is subject to the rule of reciprocity under Section 104 of
the Tax Code.
8. What is the rule in determining the situs of intangible
personal property for estate tax purposes?
As a general rule, the intangible property is taxed
based on the domicile of the owner. However, Section 104 of
the Tax Code provides that certain intangibles be deemed
located in the Philippines namely:
(1) Franchise exercised in the PH.
(2) Shares, obligations or bonds issued by a
domestic corporation or partnership, or business or industry
located in the PH.
(3) Shares, obligations or bonds issued by a foreign
corporation where 85% of its business is located in the PH.
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RTDG - ausl estate, donors, VAT, excise, percentage, doc stamp tax reviewer
DONORS TAX
1. What donations are covered by the donors tax?
The donors tax is imposed only on donation inter
vivos.
2. When is donors tax imposed?
Donors tax is imposed upon the transfer by any
person, resident or non-resident, of any property by gift.
3. What is a donors tax?
Donors tax is an excise tax imposed on the privilege
to transfer property by way of donation inter vivos.
4. What are the requisites of a valid donation?
(1) Capacity to donate
(2) Intent to donate
(3) Delivery, either actual or constructive
(4) Acceptance by the donee
(5) Form prescribed by law
5. What are considered donations for tax purposes?
(1) Sale, exchanges and other transfers of property
for less than an adequate and full consideration in money or
moneys worth
Exception: if the property is the capital asset then it is
subject to 6% capital gains tax.
(2) Condonation or remission of debt where the
debtor did not render service in favor of the creditor.
6. When is there a transfer for less than an adequate
and full consideration in money or moneys worth?
The fair market value of the property exceeded the
value of the consideration be deemed as a gift.
7. Who are liable to pay donors tax?
(1) Resident Citizen
(2) Non-Resident Citizen
(3) Resident Alien
(4) Non-Resident Alien
(5) Domestic Corporation
(6) Foreign Corporation
8. Enumerate the exemptions from donors tax
(1) Donations made on account of marriage
(2) Donations made to educational, religious,
charitable institution provided not more than 30% of said gifts
will be used for administrative purpose
(3) Donations made to or for the use of the
government not conducted for profit
9. Who are liable for donors tax?
The donor is liable to pay donors tax
RTDG - ausl estate, donors, VAT, excise, percentage, doc stamp tax reviewer
VAT-taxable Sale
Zero-rated Sale of
Service
1. There is an actual or
deemed sale, barter,
exchange of goods or
properties for a
valuable.
1. The service is
performed in the
Philippines.
3. The goods or
properties are located
within the Philippines.
3. It is paid for in
acceptable foreign
currency in accordance
with the regulations of
the BSP.
4. The transaction
should not be a VAT
zero-rated or a VATexempt transaction.
4. The recipient of
such services is doing
business outside the
Philippines.
VAT-Exempt
Transactions
PERCENTAGE TAX
1. Define Percentage Tax
Percentage Tax is a tax imposed at every stage of
the distribution process on the sale, barter, or exchange or
lease of goods or properties and on the performance of
service in the course of trade or business or on the
importation of goods, whether for business or non-business.
2. What is the current Non-Vat rate?
3%
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EXCISE TAX
1. Define Excise Tax
Excise Tax is a tax on the privilege of engaging in the
business of selling goods or services or in the importation of
goods.
2. What are subject to Excise Tax?
(1) Excise Tax on Alcohol Products
(Distilled Spirits/Wines/Fermented Liquor)
(2) Excise Tax on Tobacco Products
(Tobacco/Cigars/Cigarettes)
(3) Excise Tax on Petroleum Products
(Manufactured OIls and other Fuels)
(4) Excise Tax on Miscellaneous Articles
(Automobiles/Non-essential Goods such as
jewellery, perfumes, yachts and other vessels intended for
pleasure or sports)
(5) Excise Tax on Mineral Products