DONOR’S TAX

FORMAT OF COMPUTATION
FIRST DONATION OF THE YEAR
Gross Gift xx
Less: Exemptions/Deductions (xx)
xx
Less: Tax exempt Gift (250,000)
Net Taxable Gift xx
X Donor’s Tax Rate 6%
Donor’s Tax (due) xx
Less: Tax Credit (If applicable) xx
Donor’s Tax Payable xx

SUBSEQUENT DONATION(s) WITHIN THE

YEAR
Gross Gift, Current xx
Less: Exemptions/Deductions, Current (xx)
xx
Add: Prior gifts(s) xx
Total xx
Less: Tax Exempt Gift (250,000)
Net Taxable Gift(s) xx
X Donor’s Tax Rate 6%
Donor’s Tax Due xx
Less: Tax Paid – Prior Gift(s) (xx)
Tax Credit (if applicable) (xx)
Donor’s Tax Payable xx
 
GROSS GIFT
1. Direct gift
2. Gift through creation of a trust
3. Condonation of debt
4. Repudiation of inheritance:
a. SPECIFICALLY and categorically done in favor of
identified heirs
 b. To the exclusion or disadvantage or other co-heirs
5. Renunciation of the SS of his/her share in the conjugal
partnership pr absolute community after the dissolution of the
marriage in favor of the heirs of the deceased spouse of any
other person/s
6. Transfer for insufficient consideration (FM > SP = taxable
gift)
EXC: RP classified as capital asset located in the PH
 Gift from COMMON property – gift is taxable ONE-HALF to
each donor
 Donation between H & W during marriage
GR: not taxable (VOID)
EXC: Moderate gifts between the spouses are valid

EXEMPTIONS and/or DEDUCTIONS FROM GROSS GIFT

1. Encumbrances on the property donated assumed by the
donee
2. Diminution of gift provided by the donor
3. Gifts to the Government
4. Gifts to educational, charitable, religious corporation etc.
(enumerated)
 Not more than 30% of the said gift shall be used for
administrative purposes
5. Exemption under Special Laws (enumerated)

TAX CREDIT FOR DONOR’S TAX PAID TO A FOREIGN

COUNTRY
-only RESIDENT or CITIZEN can claim tax credit
Amount Deductible: LOWER of actual donor’s tax paid abroad
and limit
Only one foreign country:
Net Gift, Foreign/World Net Gift x PH Donor’s Tax

Two or more foreign countries:

Limit 1 – allowed per foreign country
Net Gift, per foreign country/World Net Gift x PH Donor’s Tax
Limit 2 – total
Net Gift all foreign countries/World Net Gift x PH Donor’s Tax

DEADLINE FOR FILING AND PAYMENT OF RETURN

Date of filing 30 days after the date the gift is
made or completed
Place of Payment Domicile of Donor
a. Authorized agent bank
b. RDO
c. RCO
d. City Treasurer or
municipality
Donor: NRA PH Embassy or Consulate