1. A tax is imposed on the gratuitous transfer of property between two or 6.

When an indebtedness is canceled without any service rendered

more people living at the time the transfer is made by the debtor in favor of the creditor, the forgiveness of debt will
a. Estate Tax result to:
b. Income Tax a. taxable income
c. Donor’s Tax b. distribution of dividends
d. Transfer Tax c. taxable donations
d. taxable estate
2. Which of the following is taxable only with respect to properties donated
within the Philippines? 7. Contracts without the essential element of consideration is considered as
a. Non-resident alien a. Void
b. Resident alien b. Unenforceable
c. Non-resident citizen c. Donation
d. Resident citizen d. Rescissible

3. When is the donation perfected? 8. Donor’s tax rate is at

a. Upon payment of the donor’s tax a. 6%
b. Upon execution of the deed of donation c.15%
c. The moment the donor knows of the acceptance by the done b. 30%
d. The moment the thing donated is delivered, either actually or d. 20%
constructively, to the done
9. Donor’s tax applies to gifts
4. Which of the following is not subject to donor’s tax? a. In excess of P350,000
a. Donation which will take effect upon the birth of the done. c. In excess of P100,000
b. Donation mortis causa. b. In excess of P250,000
c. A parcel of land in Singapore donated by a nonresident Filipino to a d. In excess of P150,000
foreigner.
d. A creditor who, out of his affection, canceled the debt of the debtor. 10.Donor’s tax should be paid by the?
a. Donor
5. The following are the requisites of a donation for purposes of the donor’s c. Administrator
tax, except one. b. Donee
a. Capacity of the donor d. Executor
b. Donative intent
c. The capacity of the donee 11. Dowries valued P10,000 made on account of marriage by parents to
d. Delivery of the subject matter or gift their children are subject to
a. Donor’s tax
b. Estate tax
c. Exemption
 d. Income tax c. Forfeiture
d. Tax Lien
12. All elements of donor’s tax must always concur for the donation to be
valid. Except 17. A legal claim or charge on property either real or personal established by
a. Intent law as a security in default of the payment of taxes.
b. Acceptance a. Levy
c. Capacity b. Distraint
d. Delivery c. Forfeiture
d. Tax Lien
13. This is considered void donation, except
a. Between husband and wife 18. When delinquency of the payment sets in; there is actual seizure and
b. Made to public officer or his/her family on account of his/her office distraint
c. Any physician, health officer, priest who took care or extended spiritual a. Levy
care to the donor during his last illness b. Distraint
d. Donation to an unborn child c. Forfeiture
d. Actual
14. Seizure by the government of personal property, tangible or intangible,
to enforce the payment of taxes to be followed by its public sale of such 19. No actual delinquency; the owner is prohibited from disposing of his
property, if the taxpayer fails to pay voluntarily. property; the preventive remedy to forestall a possible dissipation of the
a. Levy taxpayer’s assets when delinquency takes place
b. Distraint a. Constructive
c. Forfeiture b. Distraint
d. Tax Lien c. Forfeiture
d. Actual
15. Same act of seizure but in this case, it is seizure of real property, interest
in or rights to such property in order to enforce payment of taxes. 20. Using the preceding number, the donation and acceptance should be in
a. Levy writing if the value of the
b. Distraint property donated is
c. Forfeiture a. Less than P5,000
d. Tax Lien b. P5,000 or less
c. P5,000 or more
16. A divestiture of property without compensation, in consequence of a d. More than P5,000
default or offense. In case of chattels and removal of fixtures of any sort,
forfeiture is enforced by seizure and sale or destruction of the specific
forfeited property.
a. Levy
b. Distraint
1. Mr. Alan made a donation January 2, 2019 of 200,000. How much is the 4. January 2, 2022, a donation of P500,000; March 5, 2022, a donation of
donor’s tax? P800,000. How much is the donor’s tax on January 2, 2022?
a. 12,000 a. 15,000
b. 120,000 b. 20,000
c. 36,000 c. 35,000
d. None. Exempt from donor’s tax d. 50,000
Solution:
2. Mr. Zhan made donations on January 2, 2022. A donation of P200,000; Donation of January 2,2022 500,000
March 5, 2022, a donation od P300,000. How much is the donor’s tax Less: exempt amount 250,000
on March 5,2022? Taxable gift 250,000
a. 15,000 Donors taxon net gift of January 2, 2022 - 15,000
b. 20,000
c. 35,000 5. January 2, 2022, a donation of P500,000; March 5, 2022, a donation of
d. 50,000 P800,000. How much is the donor’s tax on March 5, 2022?
a. 15,000
3. How much is the donor’s tax on January 2, 2022? b. 46,000
a. 85,000 c. 38,000
b. 250,000 d. 48,000
c. 170,000 Solution:
d. 0 Donation of March 5,2022 800,000
Add: Donation of January 2, 2022 500,000
Solution: Total gift within the year 1,300,000
Donation of January 2, 2022 200,000 Less: Exempt amount 250,000
Less: Exempt amount 250,000 Taxable gift 1,050,000
Taxable Gift ( 0 )
Donor’s tax 0 Donor’s tax at 6% 63,000
Donor’s tax on previous gifts within the year 15,000
Donation of March 5,2022 300,000 (January 2,2022)
Add: Donation of January 2, 2022 200,000 Donor’s tax due on gift of March 5, 2022 48,000
Total 500,000
Exempt amount 250,000 6-8. Illustration
Ana gave the following donations to:
Donors tax 6% 15,000 a.) February 14, 2022- Carla, legitimate daughter on account of
Less: Donors tax in prior net gift 0 marriage last December 31, 2020- P190,000
Donors tax due 15,000 b.) June 1, 2022- Ben, brother on account marriage scheduled
December 31, 2021- P160,000
 c.) October 13, 2022- Candy, legitimate daughter, on account of Aggregate net gift 530,000
marriage on November 12, 2021- P180,000 Less: Exempt gift (250,000)
Required: Compute the tax due on each donation. Taxable net gift 280,000
Donor’s tax rate 6%
a.) a. 190,000 Donors tax due 22,400
b. 250,000 Less: Prior tax payments (6,000)
c. 100,000 Donors tax payable 16,800
d. exempt

b.) a. 5,000 Mr. John Dela Cruz and Mrs. Maica Dela Cruz made the following donations
b. 6,000 of conjugal funds and properties in 2021 as follows:
c. 10,000 a.) February 14- To A, a legitimate son, a brand new motor vehicle with
d. 15,000 a fair market value of P170,000 on account of A’s graduation from
college.
c.) a. 24,00 b.) May 17- To B, a legitimate daughter, on account of B’s marriage to
b. 7,500 be celebrated on September 25, 2021, house and lot with a fair
c. 16,800 market value of P2,000,000
d. exempt c.) June 14- To C, a brother of Mrs. Dela Cruz P850,000, with a
Solution: condition that C must give the P300,000 to the local government for
a.) February 14, 2022 the purchase of necessary materials to fight COVID-19
Gross gift 190,000 d.) December 25- To D, a legitimate son, a residential house and lot
Less: Exempt gift (250,000) with fair market value of P1,200,000 but subject to the condition
Taxable net gift (60,000) that D would assume the mortgage indebtedness in the amount of
Donor’s tax due Exempt P400,000

b.) June 1, 2022 9. How much is the taxable net gift for Mr. John on February 14?
Gross gift 160,000 a. 85,000
Add: Prior net gift 190,000 b. 250,000
Aggregate net gift 350,000 c. 170,000
Less: Exempt gift (250.000) d. 0
Taxable net gift 100,000 Solution:
Donor’s tax rate 6% Mr. John Mrs. Maica
Donor’s tax due 6,000 Gross gift 85,000 85,000
Less: Deductions 0 0
c.) October 13, 2022 Current Net Gift 85,000 85,000
Gross gift 180,000 Add: Prior Net Gift 0 0
Add: Prior net gift 350,000 Total Net Gift 85,000 85,000
Less; Exemption Threshold (250,000) (250,000) Less: Deductions (150,000) (150,000)
Taxable Net Gift 0 0 Current Net Gift 275,000 275,000
Add: Prior Net Gift 1,085,000 1,085,000
10.) How much is the donor’s tax due for Mrs. Maica on May 17? Total Net Gift 1,360,000 1,360,000
a. 50,100 Less; Exemption Threshold (250,000) (250,000)
b. 50,000 Taxable Net Gift 1,110,000 1,110,000
c. 170,000 Tax Rate 6% 6%
d. 210,300 Donor’s tax due 66,600 66,600
Less: Tax Previously Paid (50,100) (50,100)
Solution: Donor’s Tax Due & Payable 16,500 16,500
Mr. John Mrs. Maica
Gross gift 1,000,000 1,000,000 13. How much is the donor’s tax due and payable on December?
Less: Deductions 0 0 a. 24,200
Current Net Gift 1,000,000 1,000,000 b. 24,000
Add: Prior Net Gift 85,000 85,000 c. 24,500
Total Net Gift 1,085,000 1,085,000 d. 24,100
Less; Exemption Threshold (250,000) (250,000)
Taxable Net Gift 835,000 835,000 14. How much is the total net gift of Mrs. Maica on June 14?
Tax Rate 6% 6% a. 2,150,000
Donor’s tax due 50,100 50,100 b. 1,760,000
c. 1,716,500
11. How much is the donor’s tax due and payable on June 14? d. 1,360,000
a. 50,100
b. 50,000 Solution:
c. 16,500 Mr. John Mrs. Maica
d. 16,000 Gross gift 600,000 600,000
Less: Deductions (200,000) (200,000)
12. How much is the total net gift of Mr. John on June 14? Current Net Gift 400,000 400,000
a. 2,150,000 Add: Prior Net Gift 1,360,000 1,360,000
b. 1,350,000 Total Net Gift 1,760,000 1,760,000
c. 1,716,500 Less; Exemption Threshold (250,000) (250,000)
d. 1,360,000 Taxable Net Gift 1,510,000 1,510,000
Tax Rate 6% 6%
Donor’s tax due 90,600 90,600
Solution: Less: Tax Previously Paid (66,600) (66,600)
Mr. John Mrs. Maica Donor’s Tax Due & Payable 24,000 24,000
Gross gift 425,000 425,000
 a. 3,000
15. Mr. A made the following donation in the year. b.22,800
March 25- P1,500,000 c. 430,000
The donation is a car to his nephew during his birthday. It is already owned d.680,000
by Mr. A for two years and still has unpaid mortgage amounting to P300,000 19. How much is the taxable net gift on September 15?
which will now be shouldered by his nephew. How much is donors tax a. 655,000
payable? b. 660,000
a. 55,000 c. 665,000
b. 56,000 b. 670,000
c. 57,000
d. 58,000 20. How much is the donor’s tax payable on September 15?
a.14,000
Solution: b.14,110
Gross Gift 1,500,000 c. 14,400
Less: Encumbrances (300,000) d. 14,450
Net gift 1,200,000
Less: Exemption (250,000) 21. How much is the taxable net gift on December 21?
Taxable Net Gift 950,000 a. 1,830,000
Tax Rate 6% b. 1, 831,000
Donors Tax Payable 57,000 c. 1,840,000
d. 1,850,000
Mr. B made the following donations for the year:
1. February 1- P300,000 Solution:
2. June 17- P450,000 with a P70,000 encumbrance  February 1
3. September 15- P240,000 Gross gift 300,000
4. December 21- P1,400,000 with a P240,000 encumbrance Les: Encumbrances 0
16. How much is the donor’s tax due on February 1? Net gift 300,000
a. 300,000 Less: Exemption (250,000)
b. 3,000 Taxable net gift 50,000
c. 300 Rate 6%
d. 30,000 Donor’s Tax Due 3,000
17. How much is the taxable net gift on June 17?
a. 3,000  June 17
b.22,800 Gross gift 750,000
c. 430,000 Less: encumbrances (70,000)
d.680,000 Net gift 680,000
18. How much is the donor’s tax payable on June 17? Less: Exemption (250,000)
Taxable Net Gift430,000
Tax rate 6%
Donor’s Tax Due 25,800
st
Donor’ Tax Paid (1 ) (3,000)
Donor’s Tax Payable 22,800

 September 15
Gross gift 990,000
Less: encumbrances (70,000)
Net gift 920,000
Less: Exemption (250,000)
Taxable Net Gift670,000
Tax rate 6%
Donor’s Tax Due 40,200
Donor’ Tax Paid (1st) (25,800)
Donor’s Tax Payable 14,400

 December 21
Gross gift 2,390,000
Less: encumbrances (310,000)
Net gift 2,080,000
Less: Exemption (250,000)
Taxable Net Gift1,830,000
Tax rate 6%
Donor’s Tax Due 109,800
Donor’ Tax Paid (1st) (40,200)
Donor’s Tax Payable 69,600