TAXATION LAW DONOR’S TAX COMPARISON TABLE LDSALAZAR

NIRC TRAIN LAW

SEC. 98 (A) There shall be levied, assessed, collected and paid upon the transfer by any person, resident or nonresident, of the property
Imposition of Tax by gift, a tax, computed as provided in Section 99.

(B) The tax shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the
property is real or personal, tangible or intangible
SEC. 99 (A) In General. - The tax for each calendar year shall be (A) In General.— The tax for each calendar year shall be six
Rates of Tax Payable by Donor computed on the basis of the total net gifts made during the percent (6%) computed on the basis of the total gifts in excess
calendar year in accordance with the following schedule: of Two hundred fifty thousand pesos (₱250,000) exempt gift
If the net gift is: made during the calendar year.
Over But Not The Tax Plus Of the
Over Shall be Excess Over (B) Any contribution in cash or in kind to any candidate,
P 100,000 Exempt political party or coalition of parties for campaign purposes
P 100,000 200,000 0 2% P100,000 shall be governed by the Election Code, as amended
200,000 500,000 2,000 4% 200,000
500,000 1,000,000 14,000 6% 500,000
1,000,000 3,000,000 44,000 8% 1,000,000
3,000,000 5,000,000 204,000 10% 3,000,000
5,000,000 10,000,000 404,000 12% 5,000,000
10,000,000 1,004,000 15% 10,000,000

(B) Tax Payable by Donor if Donee is a Stranger. - When the

donee or beneficiary is stranger, the tax payable by the donor
shall be thirty percent (30%) of the net gifts. For the purpose
of this tax, a 'stranger', is a person who is not a:
(1) Brother, sister (whether by whole or half-blood), spouse,
ancestor and lineal descendant; or
(2) Relative by consanguinity in the collateral line within the
fourth degree of relationship.
(C) 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.

SEC. 100 Where property, other than real property referred to in
Transfer for Less Than Adequate and Full Section 24(D), is transferred for less than an adequate and full
Consideration 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, be deemed a gift, and shall be
included in computing the amount of gifts made during the
calendar year.
Where property, other than real property referred to in
Section 24(D), 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, 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

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TAXATION LAW DONOR’S TAX COMPARISON TABLE
SEC. 101 The following gifts or donations shall be exempt from the tax
Exemption of Certain Gifts provided for in this Chapter:
(A) In the Case of Gifts Made by a Resident. -
(1) Dowries or gifts made on account of marriage and before
its celebration or within one year thereafter by parents to each
of their legitimate, recognized natural, or adopted children to
the extent of the first Ten thousand pesos (P10,000):
(2) 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
(3) Gifts in favor of an educational and/or charitable, religious,
cultural or social welfare corporation, institution, accredited
nongovernment organization, trust or 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. For
the purpose of this exemption, a 'non-profit educational
and/or charitable corporation, institution, accredited
nongovernment organization, trust or philanthropic
organization and/or research institution or organization' is a
school, college or university and/or charitable corporation,
accredited nongovernment organization, trust or
philanthropic organization and/or research institution or
organization, incorporated as a non-stock entity, paying no
dividends, governed by trustees who receive no
compensation, and devoting all its income, whether students'
fees or gifts, donation, subsidies or other forms of
philanthropy, to the accomplishment and promotion of 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
LDSALAZAR
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
The following gifts or donations shall be exempt from the tax
provided for in this Chapter:
“(A) In the Case of Gifts Made by a 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; and
“(2) Gifts in favor of an educational and/or charitable,
religious, cultural or social welfare corporation, institution,
accredited nongovernment organization, trust or
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. For the purpose of this exemption, a
‘non-profit educational and/or charitable corporation,
institution, accredited nongovernment organization, trust or
philanthropic organization and/or research institution or
organization’ is a school, college or university and/or
charitable corporation, accredited nongovernment
organization, trust or philanthropic organization and/ or
research institution or organization, incorporated as a
nonstock entity, paying no dividends, governed by trustees
who receive no compensation, and devoting all its income,
whether students’ fees or gifts, donation, subsidies or other
forms of philanthropy, to the accomplishment and promotion
of the purposes enumerated in its Articles of Incorporation.
“x x x.”
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TAXATION LAW DONOR’S TAX COMPARISON TABLE LDSALAZAR
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 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.

(C)Tax Credit for Donor's Taxes Paid to a Foreign Country. -

(1) In General. - The tax imposed by this Title upon a donor

who was a citizen or a resident at the time of donation shall be
credited with the amount of any donor's tax of any character
and description imposed by the authority of a foreign country.

(2) Limitations on Credit. - The amount of the credit taken

under this Section shall be subject to each of the following
limitations:

(a) The amount of the credit in respect to the tax paid to any
country shall not exceed the same proportion of the tax
against which such credit is taken, which the net gifts situated
within such country taxable under this Title bears to his entire
net gifts; and

SEC. 102
Valuation of Gifts Made in Property
SEC. 103
Filing of Return and Payment of Tax.
(b) The total amount of the credit shall not exceed the same
proportion of the tax against which such credit is taken, which
the donor's net gifts situated outside the Philippines taxable
under this title bears to his entire net gifts.
If the gift is made in property, the fair market value thereof at the time of the gift shall be considered the amount of the gift. In
case of real property, the provisions of Section 88(B) shall apply to the valuation thereof.
(A) Requirements. - any individual who makes any transfer by gift (except those which, under Section 101, are exempt from the
tax provided for in this Chapter) shall, for the purpose of the said tax, make a return under oath in duplicate. The return shall
set forth:

(1) Each gift made during the calendar year which is to be included in computing net gifts;

(2) The deductions claimed and allowable;

(3) Any previous net gifts made during the same calendar year;

(4) The name of the donee; and

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TAXATION LAW DONOR’S TAX COMPARISON TABLE LDSALAZAR

(5) Such further information as may be required by rules and regulations made pursuant to law.

(B) Time and Place of Filing and Payment - The return of the donor required in this Section shall be filed within thirty (30) days
after the date the gift is made and the tax due thereon shall be paid at the time of filing. Except in cases where the Commissioner
otherwise permits, the return shall be filed and the tax paid to an authorized agent bank, the Revenue District Officer, Revenue
Collection Officer or duly authorized Treasurer of the city or municipality where the donor was domiciled at the time of the
transfer, or if there be no legal residence in the Philippines, with the Office of the Commissioner. In the case of gifts made by a
nonresident, the return may be filed with the Philippine Embassy or Consulate in the country where he is domiciled at the time
of the transfer, or directly with the Office of the Commissioner..
SEC. 104 For purposes of this Title, the terms 'gross estate' and 'gifts' include real and personal property, whether tangible or intangible,
Definitions or mixed, wherever situated: Provided, however, That where the decedent or donor was a nonresident alien at the time of his
death or donation, as the case may be, his real and personal property so transferred but which are situated outside the
Philippines shall not be included as part of his 'gross estate' or 'gross gift': Provided, further, That franchise which must be
exercised in the Philippines; shares, obligations or bonds issued by any corporation or sociedad anonima organized or
constituted in the Philippines in accordance with its laws; shares, obligations or bonds by any foreign corporation eighty-five
percent (85%) of the business of which is located in the Philippines; shares, obligations or bonds issued by any foreign
corporation if such shares, obligations or bonds have acquired a business situs in the Philippines; shares or rights in any
partnership, business or industry established in the Philippines, shall be considered as situated in the Philippines: Provided, still
further, that no tax shall be collected under this Title in respect of intangible personal property:

(a) if the decedent at the time of his death or the donor at the time of the donation was a citizen and resident of a foreign
country which at the time of his death or donation did not impose a transfer tax of any character, in respect of intangible
personal property of citizens of the Philippines not residing in that foreign country, or

(b) if the laws of the foreign country of which the decedent or donor was a citizen and resident at the time of his death or
donation allows a similar exemption from transfer or death taxes of every character or description in respect of intangible
personal property owned by citizens of the Philippines not residing in that foreign country.

The term 'deficiency' means:

(a) the amount by which tax imposed by this Chapter exceeds the amount shown as the tax by the donor upon his return; but
the amount so shown on the return shall first be increased by the amount previously assessed (or Collected without assessment)
as a deficiency, and decreased by the amounts previously abated, refunded or otherwise repaid in respect of such tax, or

(b) if no amount is shown as the tax by the donor, then the amount by which the tax exceeds the amounts previously assessed,
(or collected without assessment) as a deficiency, but such amounts previously assessed, or collected without assessment, shall
first be decreased by the amount previously abated, refunded or otherwise repaid in respect of such tax

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