NAME:

ARTAJO WENAH MAE E. SUBJECT: BUSINESS TAX ATION

ODIPA KRISTAL JOY J TOPIC: DONOR’S TAXATION

TIME: 8:00 – 9:00 PM

TEACHER: FELIPAS JEANVY A.

SUMMARY

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.

Computing for Donor’s Tax is now simply 6% under TRAIN, but do you know everything there is
to know when computing for this tax. The Bureau of Internal Revenue (BIR) has recently issued
the implementing guidelines covering Donor’s Taxes in the Philippines, applicable starting 2018
under the TRAIN tax bill signed into law by Pres. Rodrigo Duterte. Here’s a copy of the relevant
BIR Revenue Regulation on Donor’s Taxes.

Tax Form

BIR Form 1800 – Donor’s Tax Return

Tax Rates

(The rate applicable shall be based on the law prevailing at the time of donation)Effective
January 1, 2018 and onwards (Republic Act (RA) No. 10963/TRAIN).
Rate

The donor’s tax for each calendar year shall be six percent (6%)
computed on the basis of the total gifts in excess of Two Hundred Fifty
Thousand Pesos (P250, 000) exempt gift made during the calendar
year.

 When the gifts are made during the same calendar year but on
different dates, the donor's tax shall be computed based on the
total net gifts during the year.

 The relationship between the donor and the donee(s) shall not be
considered. Republic Act No. 10963 (TRAIN Law) does not
distinguish donations made to relatives, or donations made to
strangers.

 When the gifts are made during the same calendar year but on
different dates, the donor's tax shall be computed based on the
total net gifts during the year.

 Donation made to a stranger is subject to 30% of the net gift. A

stranger is a person who is not a:

 Donation made to a stranger is subject to 10% of the net gift. A

stranger is a person who is not a:

 Brother, sister (whether by whole or half-blood), spouse, ancestor

and lineal descendants; or  relatives by consanguinity in the
collateral line within the fourth degree of relationship. 

  Who Shall File

The Donor’s Tax Return (BIR Form No. 1800) shall be filed in triplicate
by any person, natural or juridical, resident or non-resident, who
transfers or causes to transfer property by gift, whether in trust or
otherwise, whether the gift is direct or indirect and whether the
property is real or personal, tangible or intangible.
Taxpayers who are filing BIR Form no. 1800 are excluded in the
mandatory coverage from using the eBlRForms (Section 2 of RR No. 9-
2016)

 When and Where to File and Pay

The Donor’s Tax Return (BIR Form No. 1800) shall be filed within thirty
(30) days after the date the gift (donation) is made.

The return shall be filed with any Authorized Agent Bank (AAB) of the
Revenue District Office having jurisdiction over the place of domicile
of the donor at the time of the donation, or if there is no legal
residence in the Philippines, with the Office of the Commissioner of
Internal Revenue, (Revenue District Office No. 39, South Quezon City).
In case of gifts made by a non-resident alien, the return may be filed
with RDO No. 39, or with the Philippine Embassy or Consulate in the
country where he is domiciled at the time of donation.

A separate return shall be filed by each donor for each gift (donation)
made on different dates during the year reflecting therein any previous
net gifts made in the same calendar year. Only one return shall be filed
for several gifts (donations) by a donor to the different donees on the
same date.

If the gift (donation) involves conjugal/community property, each

spouse shall file separate return corresponding to his/her respective
share in the conjugal/community property donated.  This rule shall
likewise apply in the case of co-ownership over the property being
donated.   

When the return is filed with an AAB, taxpayer must accomplish and
submit BIR-prescribed deposit slip, which the bank teller shall
machine validate as evidence that payment was received by the AAB.
The AAB receiving the tax return shall stamp mark the word
“Received” on the return and also machine validate the return as proof
of filing the return and payment of the tax by the taxpayer,
respectively. The machine validation shall reflect the date of payment,
amount paid and transactions code, the name of the bank, branch
code, teller’s code and teller’s initial. Bank debit memo number and
date should be indicated in the return for taxpayers paying under the
bank debit system.

Payments may also be made thru the epayment channels of AABs thru
either their online facility, credit/debit/prepaid cards, and mobile
payments.

For transactions covered by one (1) Deed of Sale/Exchange/Donation

involving one (1) to three (3) properties, the taxpayer can avail of the
fast lane pursuant to Revenue Memorandum Circular (RMC) No. 43-
2018, as amended by RMC No. 107-2018. Payments amounting to
twenty thousand pesos (P 20,000.00) and below shall be paid in cash
while payments above twenty thousand pesos (P 20,000.00) shall be
made through Manager’s Check or Cashier’s Check to the Revenue
Collection Officer of the RDO concerned.

The time of filing and payment vary depending on the law applicable at
the time of donation. 

MULTIPLE CHOISE QUESTION

1.An act of liberty whereby one disposes gratuition of a thing or right in favor of another who
accept it.

a. Succession c. Donation
b.Occupation d.Tradition

2. A tax imposed on the gratuitous transfer of property (not on the property between two or
more person who are living at the time transfer is made

a.Estate tax c. Income tax

b.Gift tax d.Transfer tax

3. The gift tax is imposed on the transfer of property (not on the property itself) which is why it
has been sustained as a (an)
a.Entity theory c. Cone’s tax
b.Property tax d. Poll tax

4. A donation made by a stockholder to a corporation is subject to donor’s tax because of the

following principle expect

a. Entity theory c. Benefit received principle

b.Lifeblood theory d. Tax benefit rule

5.The following are the requisites of a donation for a donation for purposes of the donor’s tax,
except (RPCPA)

a.Capacity of the donor

b.Capacity of the done

c.Deliver of the subject

d. Donative intent

6. A donation of one (1) hectare of timberland

a. C an be done oral or in written b. ,Must be in written

c. Maybe in private document d.Must be in public document

7. One of the following is a valid donation

a. Oral donation of a cellular phone worth P4,500

b. Oral donation of a passenger jeepney worth P150,000

d. A parcel of land worth P500,000 in a private document

8. Which of the following constitutes a taxable gift?

a. Creditor’s gratuitous discharge of a debtor’s obligation

b. One day rent free use of another’s property

c. Gratuitous transfer by an incompetent

d. An agreement to make a future transfer which is not supported by a consideration

9. Which of the following example is not taxable (RPCPA)

a. A Filipino citizen donated a parcel of land located in the united state B noneresident alien

b. On june 12,2015 a made a gift of P200,000 to his daughter on account of her marriage
celebrated may 21, 2014.

c. Mr. Romos , a multi-millioner, gives his wife a diamond ring worth P120,000 as birthday gift

d. A and B are the only heirs of C. A renounces his share of inheritsnce in favor of B.

10. Which of the following subject to donor’s tax

a.Donation inter-vivos to Iglesia ni kristo

b. Donation inter-vivos to international Rice Research Institute.

c. Cash contribution to a political candidate, duly reported on the Commission on Election.

d. Remission of debt where the debtor did not render service in favor ot the creditor.