CHAPTER 1

Succession and Transfer Tax

*Under the New Civil Code (NCC), ownership may be acquired through:

 Occupation
 Intellectual creation
 Law
 Donation
 Tradition
 Contract
 Prescription
 Succession
Transfer taxes are taxes imposed upon the gratuitous disposition of private
properties and rights.

Gratuitous transfer is one that neither imposes burden nor requires

consideration from transferee or recipient.

*the transfer of ownership is free because of the absence of financial

consideration. Hence, gratuitous transfer are essentially donations.

**the reverse side of gratuitous transfer is onerous, wherein the transferee

gives consideration in return for the property or rights received.

***The gratuitous transfer or donations may take effect AT THE TIME OF

DEATH of the donor or DURING THE LIFETIME of both the donor and the
done.

ESTATE TAX “donation mortis causa”

DONORS TAX “donation inter vivos”

Succession is a mode of acquisition by virtue of which, the property, rights

and obligations to the extent of the value of the inheritance, of a person are
transmitted through his DEATH to another or others either by his WILL or by
OPERATION OF LAW.