Documentary Requirements
(One (1) original copy and two (2) photocopies)
Processing and Issuance of Approved ONETT Computation Sheet (OCS) of
Tax Due On Donation of Property/ies
and
Processing and Issuance of Electronic Certificate Authorizing Registration
(eCAR) for Donation of Properties
(Where Applicant Computed its Own Tax Due)
Mandatory Requirements:
 Notarized Deed of Donation but only photocopied documents shall be
retained by BIR; (One (1) original copy and two (2) photocopies)
 TIN of Donor and Donee/s; One (1) original copy for presentation only)
 Proof of claimed tax credit, if applicable; (One (1) original copy and two
(2) photocopies)
 Duly Notarized Special Power of Attorney (SPA) for the transacting party if
the latter is not one of the parties to the Deed of Donation; (One (1)
original copy and two (2) photocopies)
 Official Receipt/Deposit Slip and duly validated return as proof of
payment; (One (1) original copy and two (2) photocopies)
 Copy of Tax Debit Memo used as payment, if applicable. (One (1)
original copy and two (2) photocopies)
For Real Properties:
 Certified True Copy/ies of the Original/Transfer/ Condominium
Certificate/s of Title (front and back pages) of the donated property, if
applicable; (One (1) original copy and two (2) photocopies)
 Certified True Copy/ies of the Tax Declaration at the time or nearest to
the date of the transaction issued by the Local Assessor’s Office for land
and improvement, if applicable; (One (1) original copy and two (2)
photocopies)
 Sworn Declaration of No Improvement by at least one (1) of the
transferees or Certificate of No Improvement issued by the
Assessor’s Office, if applicable. (One (1) original copy and two (2)
photocopies)
For Personal Properties:
Page 1 of 8
 Proof of valuation of shares of stock at the time of donation, if applicable:
a. For shares of stocks not listed/not traded - Latest Audited Financial
Statement of the issuing corporation with computation of the book value
per share;
b. For shares of stocks listed/traded - Price index from the PSE/latest FMV
published in the newspaper at the time of transaction;
c. For club shares - Price published in newspapers on the transaction date or
nearest to the transaction date.
 Photocopy of stock certificate; (One (1) original copy and two (2)
photocopies)
 Proof of valuation of other types of personal properties, if applicable;
(One (1) original copy and two (2) photocopies)
 Proof of claimed deductions, if applicable; (One (1) original copy and two
(2) photocopies)
 Certificate of deposit/ investment/ indebtedness/ stocks for donated cash
or securities; (One (1) original copy and two (2) photocopies)
 Certificate of registration of motor vehicle, if any. (One (1) original copy
and two (2) photocopies)
Other Additional Requirements, if applicable:
 Special Power of Attorney (SPA), if the person transacting/processing the
transfer is not a party to the transaction; (One (1) original copy and two
(2) photocopies)
 Certification from the Philippine Consulate or Hague Apostille Convention
(if executed abroad); (One (1) original copy and two (2) photocopies)
 Location Plan/Vicinity map if zonal value cannot be readily determined
from the documents submitted; (One (1) original copy and two (2)
photocopies)
 Certificate of Exemption/BIR Ruling issued by the Commissioner of
Internal Revenue or his authorized representative, if tax exempt; (One (1)
original copy and two (2) photocopies)
 Such other documents as may be required by
law/rulings/regulations/etc. (One (1) original copy and two (2)
photocopies)
 1.  When the gifts are made during the same calendar year but on different
dates, the donor's tax shall be computed based on the total net gifts during
Processing and Issuance of Electronic Certificate Authorizing Registration the year.
(eCAR) for Donation of Properties
2.  The relationship between the donor and the donee(s) shall not be
(Where Tax Paid is Based on the Approved ONETT Computation Sheet) considered. Republic Act No. 10963 (TRAIN Law) does not distinguish
 Donor’s Tax Returns filed with proof of payment [Revenue Official donations made to relatives, or donations made to strangers.
Receipt or Duly Validated Bank Deposit Slip with Certification from
the Authorized Agent Bank (AAB) which received the tax payment] ·  Effective January 1, 1998 to December 31, 2017 (RA No. 8424)
or Certificate of Tax Exemption; (One (1) original copy and two (2)
photocopies) The Tax Shall Plu Of the Excess
Net Gift Over But not Over
 ONETT Computation Sheet of Tax Due duly approved by the be s Over
authorized Revenue Officer; (One (1) original copy and two (2)        100,000.00 exempt    
photocopies)      100,000.00      200,000.00 0 2%    100,000.00
 Any of the following applicable document if the person presenting
     200,000.00      500,000.00 P    2,000.00 4%     200,000.00
is not among the parties to the transaction: (One (1) original copy
     500,000.00   1,000,000.00      14,000.00 6%     500,000.00
and two (2) photocopies)
  1,000,000.00   3,000,000.00      44,000.00 8%  1,000,000.00
a. Notarized Special Power of Attorney;
b. Secretary's Certificate or Board Resolution;   3,000,000.00   5,000,000.00    204,000.00 10%  3,000,000.00
c. Certification from the Philippine Consulate or Hague Apostille 10,000,000.0
  5,000,000.00    404,000.00 12%   5,000,000.00
Convention (if executed abroad). 0
10,000,000.0
and over 1,004,000.00 15% 10,000,000.00
Tax Rates 0

(The rate applicable shall be based on the law prevailing at the time of Notes:
donation)
1.    When the gifts are made during the same calendar year but on different
·  Effective January 1, 2018 and onwards (Republic Act (RA) No. dates, the donor's tax shall be computed based on the total net gifts during
10963/TRAIN) the year.

Rate - The donor’s tax for each calendar year shall be six percent (6%) 2.    Donation made to a stranger is subject to 30% of the net gift. A
computed on the basis of the total gifts in excess of Two Hundred Fifty stranger is a person who is not a:
Thousand Pesos (P250,000) exempt gift made during the calendar year.
·  brother, sister (whether by whole or half-blood), spouse, ancestor and
Notes: lineal descendants; or
Page 2 of 8
·  relative by consanguinity in the collateral line within the fourth degree of Net Gift The Tax Shall Of the Excess
But not Over Plus
relationship. Over be Over
        1,000.00 exempt    
·  Effective July 28, 1992 to December 31, 1997 (RA No. 7499)          
       1,000.00      50,000.00              1.50%          1,000.00
Net Gift The Tax Shall Plu Of the Excess
But not Over 2.50
Over be s Over      50,000.00      75,000.00 P    735.00      50,000.00
%
       50,000.00 exempt    
     75,000.00    100,000.00    1,360.00 3%      75,000.00
  
     50,000.00 1.50%        50,000.00    100,000.00    150,000.00    2,110.00 6%    100,000.00
100,000.00
   150,000.00    200,000.00    5,110.00 9%    150,000.00
  
   100,000.00 P     750.00 3%    100,000.00    200,000.00    300,000.00    9,610.00 12%    200,000.00
200,000.00
   300,000.00    400,000.00   21,610.00 15%    300,000.00
  
   200,000.00     3,750.00 5%    200,000.00    400,000.00    500,000.00   36,610.00 18%    400,000.00
500,000.00
1,000,000.0    500,000.00    625,000.00   54,610.00 21%    500,000.00
   500,000.00  18,750.00 8%    500,000.00    625,000.00    750,000.00   80,860.00 24%    625,000.00
0
3,000,000.0    750,000.00    875,000.00 110,860.00 28%    750,000.00
1,000,000.00   58,750.00 10% 1,000,000.00
0    875,000.00 1,000,000.00 145,860.00 32%    875,000.00
5,000,000.0 1,000,000.00 2,000,000.00 185,860.00 36% 1,000,000.00
3,000,000.00 258,750.00 15% 3,000,000.00
0 2,000,000.00 3,000,000.00   545,860.00  38%   2,000,000.00
5,000,000.00 and over 558,750.00 20% 5,000,000.00 3,000,000.00    925,860.00  40%    3,000,000.00 

Note: Note:    

1.    Donation made to a stranger is subject to 10% of the net gift. A 1.    Donation made to a stranger shall be either the amount computed in
stranger is a person who is not a: accordance with the preceding schedule or twenty percent (20%) of the net
gifts, whichever is higher. A stranger is a person who is not a:
·  brother, sister (whether by whole or half-blood), spouse, ancestor and
lineal descendants; or ·  brother, sister (whether by whole or half-blood), spouse, ancestor and
·  relative by consanguinity in the collateral line within the fourth degree of lineal descendant; or
relationship.  ·  relative by consanguinity in the collateral line within the fourth degree of
relationship.
·  Effective January 16, 1981 to July 27, 1992 (Presidential Decree No.
1773) Pertinent laws:
Page 3 of 8
·  Commonwealth Act. No. 466 – effective July 1, 1939 to September 14,
1950
·  Republic Act No. 579 – effective September 15, 1950 to August 3, 1969
·  Republic Act No. 6110 – effective August 4, 1969 to December 31, 1972
·  Presidential Decree No. 69 – effective January 1, 1973 to January 15,
1981
·  Presidential Decree No. 1773 – effective January 16, 1981 to July 27,
1992
·  Republic Act No. 7499 – effective July 28, 1992 to December 31, 1997
·  Republic Act No. 8424 – effective January 1, 1998 to December 31, 2017
·  Republic Act No. 10963 (TRAIN Law)– effective January 1, 2018 to
present
Procedures
·  Who Shall File
The Donor’s Tax Return (BIR Form No. 1800) shall be filed in triplicate by
any person, natural or juridical, resident or non-resident, who transfers or
causes to transfer property by gift, whether in trust or otherwise, whether
the gift is direct or indirect and whether the property is real or personal,
tangible or intangible.
Taxpayers who are filing BIR Form no. 1800 are excluded in the mandatory
coverage from using the eBlRForms (Section 2 of RR No. 9-2016).
·  When and Where to File and Pay
The Donor’s Tax Return (BIR Form No. 1800) shall be filed within thirty (30)
days after the date the gift (donation) is made.
The return shall be filed with any Authorized Agent Bank (AAB) of the
Revenue District Office having jurisdiction over the place of domicile of the
donor at the time of the donation, or if there is no legal residence in the
Philippines, with the Office of the Commissioner of Internal Revenue,
Page 4 of 8
(Revenue District Office No. 39, South Quezon City). In case of gifts made
by a non-resident alien, the return may be filed with RDO No. 39, or with the
Philippine Embassy or Consulate in the country where he is domiciled at
the time of donation.
A separate return shall be filed by each donor for each gift (donation) made
on different dates during the year reflecting therein any previous net gifts
made in the same calendar year. Only one return shall be filed for several
gifts (donations) by a donor to the different donees on the same date.
If the gift (donation) involves conjugal/community property, each spouse
shall file separate return corresponding to his/her respective share in the
conjugal/community property donated.  This rule shall likewise apply in the
case of co-ownership over the property being donated.   
When the return is filed with an AAB, taxpayer must accomplish and submit
BIR-prescribed deposit slip, which the bank teller shall machine validate as
evidence that payment was received by the AAB. The AAB receiving the tax
return shall stamp mark the word “Received” on the return and also
machine validate the return as proof of filing the return and payment of the
tax by the taxpayer, respectively. The machine validation shall reflect the
date of payment, amount paid and transactions code, the name of the
bank, branch code, teller’s code and teller’s initial. Bank debit memo
number and date should be indicated in the return for taxpayers paying
under the bank debit system.
Payments may also be made thru the epayment channels of AABs thru
either their online facility, credit/debit/prepaid cards, and mobile payments.
For transactions covered by one (1) Deed of Sale/Exchange/Donation
involving one (1) to three (3) properties, the taxpayer can avail of the fast
lane pursuant to Revenue Memorandum Circular (RMC) No. 43-2018, as
amended by RMC No. 107-2018. Payments amounting to twenty thousand
pesos (P 20,000.00) and below shall be paid in cash while payments above
twenty thousand pesos (P 20,000.00) shall be made through Manager’s
Check or Cashier’s Check to the Revenue Collection Officer of the RDO
concerned.
The time of filing and payment vary depending on the law applicable at the
time of donation.
A.  “In the Case of Gifts made by a Resident
·  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; and

Related Revenue Issuances ·  Gifts in favor of an educational and/or charitable, religious, cultural or
social welfare corporation, institution, accredited non-government
Revenue Regulations (RR) Nos. 2-2003, 6-2013, 6-2014 organization, trust or philanthropic organization or research institution or
Revenue Memorandum Circular (RMC) Nos. 63-2009, 53-2013, 43-2018, organization: Provided, however, not more than 30% of said gifts will be
107-2018; 94-2021 used by such donee for administration purposes. For the purpose of this
Revenue Memorandum Order (RMO) No. 35-2018 exemption, a ‘non-profit educational and/or charitable corporation,
OPM-AS-APMD 2017-06-06 institution, accredited nongovernment organization, trust or philanthropic
OPM-AS-APMD 2017-06-01 organization and/or research institution or organization’ is a school, college
or university and/or charitable corporation, accredited nongovernment
Codal Reference organization, trust or philanthropic organization and/ or research institution
or organization, incorporated as a nonstock entity, paying no dividends,
·  Sections 28, 29 and 30 of the Tax Reform Acceleration and Inclusion governed by trustees who receive no compensation, and devoting all its
(TRAIN) Law), amending Sections 99, 100 and 101 of National Internal income, whether students’ fees or gifts, donation, subsidies or other forms
Revenue Code (NIRC) of 1997, respectively of philanthropy, to the accomplishment and promotion of the purposes
·  Sections 98 to 104 of the NIRC of 1997 enumerated in its Articles of Incorporation.” (Sec. 17 of RR No. 12-2018)

Related Laws B.  In the Case of Gifts Made by a Nonresident not a Citizen of the
Philippines
·  Republic Act Nos. 579, 3062, 3676, 3850, 6110, 7499, 8424, 9159, 9275,
9500, 9647, 10066, 10072, 10073, 10083, 10174, 10390, 10618, 10963 ·  Gifts made to or for the use of the National Government or any entity
(TRAIN Law) created by any of its agencies which is not conducted for profit, or to any
·  Presidential Decree Nos. 69, 181, 205, 292, 294, 1773 political subdivision of the said Government.
·  Executive Order No. 419
·  Commonwealth Act No. 466 ·  Gifts in favor of an educational and/or charitable, religious, cultural or
social welfare corporation, institution, foundation, trust or philanthropic
Frequently Asked Questions organization or research institution or organization: Provided, however, that
not more than thirty percent (30%) of said gifts shall be used by such
1. What donations are tax exempt? donee for administration purposes.   (Sec. 101 (B) of NIRC, as amended)

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2. What are the bases in the valuation of property?   Insurance Commissioner. (Sec. 2, RR No. 17-2018 and Sec. 5 of RR No. 12-
The properties comprising the gift/donation shall be valued based on their
fair market value as of the time of donation.
If the property is a real property, the fair market value thereof as of the time
of donation shall be, whichever is the higher of –
1. The fair market value as determined by the Commissioner, or
2. The fair market value as shown in the schedule of values fixed by the
provincial and city assessors.
In the case of shares of stocks, the fair market value shall depend on
whether the shares are listed or unlisted in the stock exchanges. Unlisted
common shares are valued based on their book value while unlisted
preferred shares are valued at par value. In determining the book value of
common shares, appraisal surplus shall not be considered as well as the
value assigned to preferred shares, if there are any. On this note, the
valuation of unlisted shares shall be exempt from the provisions of RR No.
6-2013, as amended.
For shares which are listed in the stock exchanges, the fair market value
shall be the arithmetic mean between the highest and lowest quotation at a
date nearest the date of donation, if none is available on the date of
donation.
The fair market value of units of participation in any association, recreation
or amusement club (such as golf, polo, or similar clubs), shall be the bid
price nearest the date of donation published in any newspaper or
publication of general circulation.
To determine the value of the right to usufruct, use or habitation, as well as
that of annuity, there shall be taken into account the probable life of the
beneficiary in accordance with the latest basic standard mortality table, to
be approved by the Secretary of Finance, upon recommendation of the
Page 6 of 8
2018) 
3. For purposes of Donor’s Tax, what does the term “Net Gift” mean?
For purposes of the donor’s tax, “net gift” shall mean the net economic
benefit from the transfer that accrues to the donee. Accordingly, if a
mortgaged property is transferred as a gift, but imposing upon the donee
the obligation to pay the mortgage liability, then the net gift is measured by
deducting from the fair market value of the property the amount of
mortgage assumed. (Sec. 12 of RR No. 12-2018)
4. Under R.A. No.10963 (TRAIN Law), is any contribution in cash or in kind
to any candidate or political party or coalition of parties for campaign
purposes subject to the payment of donor’s tax?
Sec. 28 (B) of RA No. 10963 (TRAIN Law) states that any contribution in
cash or in kind to any candidate, political party or coalition of parties for
campaign purposes shall be governed by the Election Code, as amended.”
5. For purposes of Donor’s Tax, is a legally adopted child considered
stranger?
A legally adopted child is entitled to all the rights and obligations provided
by law to legitimate children, and therefore, donation to him shall not be
considered as donation made to stranger. (Sec. 10, RR No. 2-2003).
However, with the passage of RA No. 10963 (TRAIN Law), effective on
January 1, 2018, the relationship between the donor and donee(s) is no
longer considered in the computation of donor’s tax.
6. For purposes of Donor’s Tax, are donations between businesses
considered donations made between strangers?
Donation made between business organizations and those made between
an individual and a business organization shall be considered as donation
made to a stranger.  (sec. 10, RR No. 2-2003). However, with the passage
of RA No. 10963 (TRAIN Law), effective on January 1, 2018, the
relationship between the donor and donee(s) is no longer considered in in
the computation of donor’s tax.
7. Are gratuitous donations to Homeowners’ Associations subject to
Donor’s Tax?
Gifts, donations, and other contributions received by the Homeowners’
Associations (Associations) are subject to the payment of donor’s tax
pursuant to Section 98, and 99 of the NIRC, as amended by Sec. 28 of RA
10963 (TRAIN Law). Endowment or gifts received by such associations are
not exempt from donor’s tax considering that gifts to Associations are not
qualified for exemption under Section 101(A)(2) of the TRAIN Law. (Section
II, RMC No. 53-2013)
8. Is an onerous donation or donation in exchange for goods, services or
use or lease of properties to Homeowners’ Association subject to Donor’s
Tax?
Pursuant to RMC No. 9-2013, associations are subject to the
corresponding internal revenue taxes imposed under the Tax Code of 1997
on their income of whatever kind and character. In this regard,
contributions to associations in exchange for goods, services and use of
properties constitute as other assessments/charges from activity in
exchange for the performance of a service, use of properties or delivery of
an object. As such, these fees are income on the part of the associations
that are subject to income tax under Section 27 of the Tax Code, as
amended. (Section III, RMC No. 53-2013)
9. What is the proper treatment for transactions involving transfer of
property other than real property referred to in Section 24 (D) for less than
adequate and full consideration?
Page 7 of 8
Where property, other than real property referred to in Section 24(D) of the
NIRC, as amended, is transferred for less than an adequate and full
consideration in money or money's worth, then the amount by which the
fair market value of the property exceeded the value of the consideration
shall, for the purpose of the tax imposed by this Chapter (Donor’s Tax), be
deemed a gift, and shall be included in computing the amount of gifts
made during the calendar year: Provided, however, that a sale, exchange, or
other transfer of property made in the ordinary course of business (a
transaction which is a bona fide, at arm’s length, and free from any
donative intent) will be considered as made for an adequate and full
consideration in money or money’s worth. (Sec. 16, RR No. 12-2018)
10. What entities are considered exempted from Donor’s Tax under
special laws?
The list below consists of entities considered Donor’s Tax exempt under
special laws including, but not limited to the following:
·  Rural Farm School (Sec. 14, R.A. No. 10618)
·  People’s Television Network, Incorporated (Sec. 15, R.A. No. 10390)
·  People’s Survival Fund (Sec. 13, R.A. No. 10174)
·  Aurora Pacific Economic Zone and Freeport Authority (Sec. 7, R.A. No.
10083)
·  Girl Scouts of the Philippines (Sec. 11, R.A. No. 10073)
·  Philippine Red Cross (Sec. 5, R.A. No. 10072)
·  Tubbataha Reefs Natural Park (Sec. 17, R.A. No. 10067)
·  National Commission for Culture and the Arts (Sec. 35, R.A. No. 10066)
·  Philippine Normal University (Sec. 7, R.A. No. 9647)
·  University of the Philippines (Sec. 25, R.A. No. 9500)
·  National Water Quality Management Fund (Sec. 9, R.A. No. 9275)
·  Philippine Investors Commission (Sec. 9, R.A. No. 3850)
·  Ramon Magsaysay Award Foundation (Sec. 2, R.A. 3676)
·  Philippine-American Cultural Foundation (Sec. 4, P.D. 3062)
·  International Rice Research Institute (Art. 5(2), PD 1620)
·  Task Force on Human Settlements (Sec. 3(b)(8), E.O. 419)
·  National Social Action Council (Sec. 4, P.D. 294)
·  Aquaculture Department of the Southeast Asian Fisheries Development
Center (Sec. 2, P.D. 292)
·  Development Academy of the Philippines (Sec. 12, PD 205)
·  Integrated Bar of the Philippines (Sec. 3, PD 181)

11. Is waiver/renunciation of an heir on his/her share from the inheritance

subject to a Donor’s Tax?
General renunciation of an heir on his/her share from the inheritance is
not subject to Donor's Tax. However, there are instances where in the settlement
of the estate of the decedent, instead of all the heirs receiving their respective
shares in all the properties of the decedent, the heirs will agree among
themselves for a specific property that each one of them will receive. In this
scenario, there will definitely be an heir who will receive a share lower or higher
than the value of what should have been his rightful share in all the properties of
the decedent. In this case, there is actually a partial renunciation of inheritance
since the heir is waiving his share to only identified properties but not to the
entire properties of the decedent. Hence, donor's tax shall be imposed on the
value forgone as a result of such waiver/renunciation. (RMC No. 94-2021)

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