1. DONOR’STAX
GROUP 2
SCOTT SNYDER SU
JULIAN PACQUING
JASONCURAY
KAYRON RAMIREZ
KEVIN KENG
DE LA SALLE – COLLEGE OF
SAINT BENILDE

2. Meaning of donation or gift
•It is an act of liberality, whereby a person
disposes gratuitously of a thing or right in
favor of another who accepts it.

3. Kinds of donations
• inter vivos – it is made between living persons to take
effect during the lifetime of the donation
• mortis causa – it is made in the nature of a testamentary
disposition , that is, it shall take effect upon the death of
the donor
• inter vivos meaning between living people
• Mortis causa meaning deeds made in contemplation of
death

4. Donations not subject to donor’s
tax
• Only donations inter vivos are subject to donor’s tax.
• Donations mortis causa are subject to estate tax as they
are considered under theTax Code as transfers made in
contemplation of death of the donor.They are governed
by the laws on succession
• Donations inter vivos of the amount of Php 50,000.00 or
less and those declared exempt by the Tax Code (infra.)
and special laws are also not subject to donor’s tax.

5. Meaning of gift tax
• Gift tax is tax imposed on gift or the transfer
without consideration of property between two
or more persons who are living at the time the
transfer is made.

6. Kinds of gift taxes
• Donor’sTax or tax levied on the act of giving, it
supplements the estate tax, it supplements the estate
tax; and
• Donee’sTax or tax levied on the act of receiving; It was
formerly the counterpart of the inheritance tax which Is
now called estate tax.

7. NATURE OF GIFTTAX
• It is an excise on the privilege of the done to receive. It is
not a tax on property.
• The tax imposed without reference to the death of the
donor unlike the estate tax.

8. PURPOSE OF GIFTTAX
• To prevent their avoidance by those who give away
property and money in anticipation of death through
taxation of gifts inter vivos.
• To prevent the avoidance of income tax through the
device of splitting income among numerous donees with
the donor.

9. DISTINCTIONS BETWEEN
DONOR’S & ESTATETAX
DONORSTAX ESTATETAX
TRANSMIT PROPERTYDURING LIFE TRANSMIT PROPERTY UPON DEATH
LOWERTAX RATES HIGHERTAX RATES
100,000 EXEMPTION 200,000 EXEMPTION
NOTICE OF DONATION NOT
REQUIRED
NOTICE OF DEATH REQUIRED
NO EXTENSTIONOF PAYMENT EXTENSION MAY BE GRANTED

10. TRANSFER AND PERSONS
SUBJECTTO DONOR’sTAX
• It 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.
• Every person, whether natural or juridical, resident or
non-resident, who transfers or causes to transfer property
by gift.

11. Requisites of taxable gifts
• Capacity of the donor
• Donative intent
• Delivery of the subject matter of the gift.
• Acceptance of the gift by the donee

12. Exemptions
• Dowries or donations made on account of marriage 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 P10,000
• 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
• Gifts in favor of an educational and/or charitable, religious, cultural or social welfare
corporation, institution, accredited non-government organization, trust or research
institution or organization, provided not more than 30% of said gifts will be used by such
donee for administration purposes
• Encumbrances on the property donated if assumed by the donee in the deed of donation
• Gifts with the amount of 100,000php or less.

13. TAX RATES
Net Gift Over But not Over
The Tax
Shall be
Plus Of the Excess Over
100,000.00 exempt
100,000.00 200,000.00 0 2% 100,000.00
200,000.00 500,000.00 P 2,000.00 4% 200,000.00
500,000.00 1,000,000.00 14,000.00 6% 500,000.00
1,000,000.00 3,000,000.00 44,000.00 8% 1,000,000.00
3,000,000.00 5,000,000.00 204,000.00 10% 3,000,000.00
5,000,000.00 10,000,000.00 404,000.00 12% 5,000,000.00
10,000,000.00 and over 1,004,000.00 15% 10,000,000.00

14. VALUATION OF PROPERTY
• 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 taxable base is the fair market
value as determined by the Commissioner of Internal
Revenue (ZonalValue) or fair market value as shown in
the latest schedule of values of the provincial and city
assessor (MV perTax Declaration), whichever is higher

15. Quiz
• 1-2. what are the 2 types of donation?
• 3-4. give 2 differences of the donors tax from the estate tax
• 5-6. Give the 2 kinds of gift tax
• 7.What is the price range where you will be exempted from gift
tax?
• 8. how will the property be valued?
• 9. who are subject to gift tax?
• 10. what the maximum tax rate that you can receive?

16. U.S. GiftTax Law
• Adopted May 7, 1974

17. Property of Donation
• : (a) the reduction of the patrimony of the donor;
• (b) the increase in the patrimony of the donee; and,
• (c) the intent to do an act of liberality or animus donandi