Company A Adjusted Net Asset Method

Values Fair Market Value

Assets 20,000,000.00 50,000,000.00
Liabilities 5,000,000.00 8,000,000.00
42,000,000.00 net asset

Outstanding shares 1,000,000.00 1,000,000.00

42.00 FMV/share
Stockholders
Martel 1,000.00 shares 42,000.00 value of donation
et Method

FMV/share

value of donation
 Tax Rate 2018 6% of the excess of 250,000
Data:
Land - US 20,000,000.00
Tax Paid in the US 500,000.00

Citizen 20,000,000.00
250,000.00 deduction
19,750,000.00 taxable gift
6%
PDT philippine tax due 1,185,000.00 1,185,000.00
tax credit 500,000.00 500,000.00
donors tax due 685,000.00 685,000.00
Net gift - US 20,000,000.00 1,185,000.00 tax credit limit 1,185,000.00
Net gift - entire 20,000,000.00

TCL vs tax paid abroad, whichever is lower = allowable credit

of the excess of 250,000

Land - US 20,000,000.00
Tax Paid in the US 500,000.00
Building - Syria 15,000,000.00
Tax Paid in Syria 2,000,000.00
Land - Phils 10,000,000.00
PDT 2,685,000.00
Total donation 45,000,000.00 Tax Credits
250,000.00 deduction US 500,000.00
44,750,000.00 taxable gift Syria 895,000.00 1,395,000.00
6% Net payable 1,290,000.00
pdt 2,685,000.00 tax due

tax credit limit - US

net gift - US 20,000,000.00 2,685,000.00
total gift 45,000,000.00
tax credit limit - US 1,193,333.33 1,193,333.33 US

tax credit limit - Syria

net gift - syria 15,000,000.00 2,685,000.00
total gift 45,000,000.00
tax credit limit - Syri 895,000.00 895,000.00 Syria
2,088,333.33