Yu, Louie Imma-Therese E.

AC 3103 G3 MW (06:00PM-07:30PM)

Comparison between Estate Tax and Donor’s Tax

As to Estate Tax Donor’s Tax

BIR Form BIR Form 1801 - Estate Tax Return BIR Form 1800 - Donor’s Tax Return

Deadline for filing and The Estate Tax Return shall be filed The Donor’s Tax Return shall be filed
payment within one 1 year from the within thirty 30 days after the date
decedent's death. In meritorious the gift or donation is made.
cases, the Commissioner shall have
the authority to grant a reasonable
extension not exceeding thirty 30
days for filing the return.

When imposed? It is imposed upon the death of the
decedent since succession takes
place and the right of the State to tax
the privilege to transmit the estate
vests instantly upon death.
Taxpayer The executor, or administrator, or
any of the legal heir/s of the
decedent.
It is imposed on annual net gifts
reckoned over a calendar year basis
or upon the gratuitous transfer of
property from one person to another
during their lifetime.
The Donor.

Who actually pays the The decedent or owner of the estate. The Donor.
tax?

Exemption/s and/or Exemptions: Exemptions:

Deduction/s 1. GSIS proceeds/ benefits A. In the Case of Gifts made by a

2. Accruals from SSS
3. Proceeds of life insurance where
the beneficiary is irrevocably
appointed
4. Proceeds of life insurance under a
group insurance taken by employer
(not taken out upon his life)
Resident.
1. Gifts made to or for the use of the
National Government or any entity
created by any of its agencies which
is not conducted for profit, or to any
political subdivision of the said
Government.
2. Gifts in favor of an educational
and/or charitable, religious, cultural
5. War damage payments or social welfare corporation,
institution, accredited non-
6. Transfer by way of bona fide sales
government organization, trust or
7. Transfer of property to the philanthropic organization or
National Government or to any of its research institution or organization:
political subdivisions 8. Separate Provided, however, not more than
property of the surviving spouse 30% of said gifts will be used by such
donee for administration purposes.
9. Merger of usufruct in the owner of For the purpose of this exemption, a
the naked title ‘non-profit educational and/or
10. Properties held in trust by the charitable corporation, institution,
decedent accredited non government
organization, trust or philanthropic
11. Acquisition and/or transfer organization and/or research
expressly declared as not taxable. institution or organization’ is a
school, college or university and/or
charitable corporation, accredited
Deductions: non government organization, trust
or philanthropic organization and/ or
A. Losses, Indebtedness and Taxes
research institution or organization,
(LIT)
incorporated as a non stock entity,
B. Transfer for Public Use paying no dividends, governed by
trustees who receive no
C. Vanishing Deductions
compensation, and devoting all its
D. Special Deductions such as Family income, whether students’ fees or
home, Standard deductions, Benefits gifts, donation, subsidies or other
under RA 4917 forms of philanthropy, to the
accomplishment and promotion of
E. Share of the surviving spouse the purposes enumerated in its
Articles of Incorporation.

B. In the Case of Gifts Made by a

Nonresident not a Citizen of the
Philippines

1. Gifts made to or for the use of the

National Government or any entity
created by any of its agencies which
is not conducted for profit, or to any
political subdivision of the said
Government.

2. Gifts in favor of an educational

and/or charitable, religious, cultural
or social welfare corporation,
institution, foundation, trust or

Tax Rate There shall be an imposed rate of six
percent (6%) based on the value of
such net estate determined as of the
time of death of decedent composed
of all properties, real or personal,
tangible or intangible less allowable
deductions.
Tax Base Net Taxable Estate determined as of
the time of death of the decedent
and composed of all properties, real
or personal, tangible or intangible
less, allowable deductions.
Provided that the minimum Estate
Amnesty Tax for the transfer of the
estate of each decedent shall be Five
Thousand Pesos (P5,000.00).
Can you avail of Tax YES
Amnesty? How?
Steps:
1. Accomplish the Estate Tax
Amnesty Return (ETAR) and submit,
together with the complete
documentary requirements to the
concerned RDO for computation of
Estate Tax Amnesty due and
endorsement of Acceptance
Payment Form (APF).
2. Present the RDO-endorsed APF to
Authorized Agent Banks (AABs) or
Revenue Collection Officers (RCOs),
whichever is applicable, and pay the
amnesty amount.
philanthropic organization or
research institution or organization:
Provided, however, that not more
than thirty percent (30%) of said gifts
shall be used by such donee for
administration purposes.
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
gifts made during the calendar year.
The total gifts in excess of Two
Hundred Fifty Thousand Pesos
(Php250,000) exempt gifts made
during the calendar year. If there is
only one gift given during the
calendar year, the tax due shall be
based on the value of the gift
donated less allowable deductions.
However, if there are several gifts
made, the tax due shall be computed
based on the total net gifts made
during the calendar year.
NO
 3. Submit the validated APF and
proof of payment to the concerned
RDO, which shall not be beyond the
two-year availment period.

4. Receive Certificate of Availment

and Electronic Certificate Authorizing
Registration (eCAR) from the RDO.

Penalties and 1. A surcharge of twenty-five percent Failure to file and pay donor’s tax is
surcharges (25%) in the following violations: subject to 25% surcharge penalty
and/or 50% if fraudulent.
a. Failure to file any return and pay
the amount of tax or installment due
on or before
Also, 20% interest and compromise
the due date; penalties ranging from P200 to
P25,000.
b. Filing a return with a person or
office other than those with whom it
is required to be filed, unless
otherwise authorized by the
Commissioner;

c. Failure to pay the full or part of the

amount of tax shown on the return,
or the full amount of tax due for
which no return is required to be
filed on or before the due date; or

d. Failure to pay the deficiency tax

within the time prescribed for its
payment in the notice of assessment.

2. A surcharge of fifty percent (50%)

of the tax or of the deficiency tax, in
case any payment has been made on
the basis of such return before the
discovery of the falsity or fraud, for
each of the following violations:

a. Willful neglect to file the return

within the period prescribed by the
Code or by the rules and regulations;
or

b. In case a false or fraudulent return

is willfully made.

3. Interest at the rate of double the

legal interest rate for loans or
forbearance of any money

in the absence of an express

stipulation as set by the Bangko
Sentral ng Pilipinas from the date
prescribed for payment until the
amount is fully paid. Provided, that
in no case shall the deficiency and
the delinquency interest prescribed
under Section 249 Subsections (B)
and (C) of the National Internal
Revenue Code, as amended, be

imposed simultaneously.

4. Compromise penalty as provided

under applicable rules and
regulations.