Quiz Number 2: February 17, 2021
immovable.
TRUE or FALSE: Write TRUE if and only if the statement
is absolutely TRUE. If not, write FALSE and the word/s
that make/s the statement false.
1. The estate of a non-resident alien decedent who
died last Valentines Day is allowed to claim funeral
and judicial deductions unlike resident citizen
decedent.
2. Also, the abovementioned non-resident alien
decedent may not claim a standard deduction.
3. The share of the surviving spouse is included in the
computation of the decedent’s interest in the
estate.
4. An estate Tax credit on the estate taxes paid in a
foreign country is allowed in the Philippines
5. The Executor or administrator of the decedent must
inform the BIR of the fact of death of the decedent.
6. The estate tax return need be filed if the gross value
of the estate is less than P200,000.00.
7. A certification by a certified public accountant is
required as a supporting document to the estate tax
return when the gross value of the estate exceeds
two million pesos.
8. Under the TRAIN Law, the deadline for filing of
estate tax return is extended from 6 months to one
year from the date of death of decedent.
9. The statutory deadline for the payment of the
estate tax is also extended from six months to one
year from the date of filing the estate tax return.
10. The Commissioner can extend the payment of
Estate Tax for a period not exceeding five years.
11. No interest or surcharge may be imposed for any
amount paid after the statutory due date of tax but
within the extension period.
12.For payment by installment in case the available
cash of the estate is insufficient to pay the total
estate tax due, payment shall be allowed within 2
years from the statutory date for its payment
without civil penalty and interest.
13.The place of filing the estate tax return is the RDO
where the decedent was domiciled at the time of
his death.
14.The administrator of the estate or any one of the
heirs of the decedent may upon authorization of the
Commissioner, withdraw and amount not
exceeding 20,000 pesos.
15. A donation of immovable property must be in a
public instrument to be valid except when the value
of the property is less than P 5,000.00.
16. Donor’s Tax is a tax levied, assessed, collected, and
paid upon the transfer of any person, resident or
non-resident, of the property by gift inter vivos.
17.Unlike the estate tax, which is an excise tax, Donor’s
tax is a property tax considering it is a tax on the
gratuitous transfer of property whether movable or
18.The law in force at the time of signing the deed of
donation shall govern the imposition of the donor’s
tax.
19. Any contribution in cash or in kind to any candidate
or political party or coalition of parties for campaign
purposes, duly reported to the COMELEC, is not
subject to the payment of any gift tax, thus, exempt
from donor’s tax.
20.General renunciation by an heir of his share in the
inheritance is not subject to donor’s tax.
21. The renunciation of the surviving spouse of the
share in the conjugal partnership or absolute
community is not subject to donor’s tax except if
the renunciation is general.
22.In transfers for less than adequate and full
consideration in money and money’s worth is an
example of indirect donation where animus
donandi of the party should be ascertained.
23. Shares of stock not traded in the stock exchange
sold for less than its fair market value, the excess of
the fair market value over the selling price shall be
treated as a gift subject to donor’s tax.
24. For Donor’s Tax, the tax for each calendar year shall
be 6% computed on the basis of the total gifts in
excess of 250,000.
25.The reciprocity rule only applies to a non-resident
alien donor and only on his personal properties
located in the Philippines.
26.Real property is as a gift is valuated on its fair
market value as shown in the schedule of values
fixed by the provincial or city assessors.
27.Exemption from donor’s tax of dowries made on
account of marriage and before its celebration or
within one year thereafter is no longer exempt as it
was removed by the passage of TRAIN Law.
28.Gifts in favor of educational and/or charitable,
religious, cultural or social welfare corporation,
institution, accredited NGO, trust or philanthropic
organization, or research institution or organization
are exempt from donor’s tax. Provided, that the
done does not use more than 30% of the gifts for
administration purposes.
29. Gifts made to or for the use of the National
Government or any entity created by any of its
agencies are exempt from Donor’s tax.
30.When the property donated is the subject of an
encumbrance, the amount of unpaid encumbrance,
is deductible to the gross gift.