Introduction to

Transfer Tax
F Dauz Jr
Rationale of Transfer Taxation
Transfer – Transmission of property from one person to
another

Types of Transfers: Tax Type

1.Bilateral Transfers – Onerous transfers Income Tax/ CGT
2. Unilateral transfers – Gratuitous transfers:
i. Donation ( Inter vivos) Donor’s Tax
ii. Succession(Mortis-causa) Estate Tax 3. Complex
Transfers – Transfers for less than full and
adequate consideration Income/ Transfer Tax
 Rationale of Transfer Taxation
Rationale of Transfer Taxation
• Tax evasion or minimization Theory
• Tax recoupment theory
• Benefit received theory
• State partnership theory
• Wealth redistribution theory
• Ability to pay theory
Rationale of Transfer Taxation
Nature of Transfer Taxes
• Privilege Tax
• Ad Valorem Tax
• Progressive Tax
• National Tax
• Direct Tax
• Fiscal Tax
Taxable Transfers
CLASSIFICATION OF TRANSFER TAXPAYERS Transfer Tax
1. Resident s or Citizens Global transfers
– Resident Citizen
– Resident Alien
– Non-resident citizens
2. Non-resident aliens Philippine
 Transfers
Non-resident aliens – w/ reciprocity Philippine
transfers except intangible personal properties
Intangible personal properties
1. Financial Assets:
Cash
Receivables
Investment in Bonds
 Shares of Stock in Corporations
Interest in Partnership
2. Intangible assets under financial accounting
Valuation of Transfers
1. Donation inter-vivos – Date of completion or
perfection of donation
2. Donation mortis-causa – Date of Death