Donors Tax

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.

The donor’s tax shall be 6% to be computed on the basis of the total gifts in excess of P100,000 exempt
gift made during the calendar year. The provision in Section 99(B) on a 30% donor’s tax on donations to
a stranger is removed.