TITLE III ESTATE AND DONOR'S TAXES CHAPTER II - DONOR'S TAX
SEC. 98. Imposition of Tax. -
(A) There shall be levied, assessed, collected and paid upon the transfer transfer by any person, resident resident or nonresident, of the property by gift, a tax, computed as provided in Section 99. (B) The tax shall apply hether the transfer is in trust or otherise, hether the the gift is direct or indirect, and hether the property is real or personal, tangible or intangible.
SEC. 99. Rates of Tax Paa!"e ! Dono#. -
$A% In &ene#a" . ! The tax for each calendar year shall be computed on the basis of the total net gifts made during the calendar year in accordance ith the folloing schedule" #f the net gift is"
$ver
But %ot $ver
The Tax Shall be
&lus
$f the 'xcess $ver
& ,
'xempt
& ,
*,
*+
&,
*,
,
*,
-+
*,
,
,,
-,
+
,
,,
/,,
--,
0+
,,
/,,
,,
*-,
+
/,,
,,
,,
--,
*+
,,
,-,
+
,,
,,
$% Tax Paa!"e ! Dono# if Donee is a St#an(e# . ! 1hen the donee or beneficiary is stranger, the tax payable by the donor shall be thirty percent (/+) of the net gifts. 2or the purpose of this tax, a 3stranger,3 is a person ho is not a" () Brother, sister (hether (hether by hole or half!blood), spouse, ancestor and lineal descendant4 descendant4 or (*) 5elative by consanguinity in the collateral collateral line ithin the fourth degree degree of relationship.
$C% Any contribution in cash or in 6ind to any candidate, political party or coalition of parties for campaign purposes shall be governed by the 'l ection 7ode, as amended.
SEC. )**. T#ansfe# fo# Less T+an A,eate an, f"" Consi,e#ation. ! 1here property, other than real property referred to in Section *-(8), is transferred for less than an adeuate and full consideration in money or money3s orth, then the amount by hich the f air mar6et value of the property exceeded the value of the consideration shall, for the purpose of the tax imposed by this 7hapter, be deemed a gift, and shall be included in computing the amount of gifts made during the calendar year.
SEC. )*). Exemption of Ce#tain &ifts. ! The folloing gifts or donations shall be exempt from the tax provided for in this 7hapter"
$A% In t+e Case of &ifts /a,e ! a Resi,ent. () 8ories or gifts made on account of marriage and before its celebration or ithin one year thereafter by parents to each of their legitimate, recogni:ed natural, or adopted children to the extent of the first Ten thousand pesos (&,)" (*) ;ifts made to or for the use of the %ational ;overnment or any entity created by any of its agencies hich is not conducted for profit, or to any political subdivision of the said ;overnment4 and (/) ;ifts in favor of an educational and
$% In t+e Case of &ifts /a,e ! a Non#esi,ent not a Citi0en of t+e P+i"ippines . ! () ;ifts made to or for the use of the %ational ;overnment or any entity created by any of its agencies hich is not conducted for profit, or to any political subdivision of the said ;overnment. (*) ;ifts in favor of an educational and
$C% Tax C#e,it fo# Dono#'s Taxes Pai, to a 1o#ei(n Cont#. -
$)% In &ene#a" . ! The tax imposed by this Title upon a donor ho as a citi:en or a resident at the time of donation shall be credited ith the amount of any donor3s tax of any character and description imposed by the authority of a foreign country.
$2% Limitations on C#e,it. ! The amount of the credit ta6en under this Section shall be sub=ect to each of the folloing 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 hich such credit is ta6en, hich the net gifts situated ithin such country taxable under this Title bears to his entire net gifts4 and (b) The total amount of the credit shall not exceed the same proportion of the tax against hich such credit is ta6en, hich the donor3s net gifts situated outside the &hilippines taxable under this title bears to his entire net gifts.
SEC. )*2. 3a"ation of &ifts /a,e in P#ope#t. ! #f the gift is made in property, the fair mar6et value thereof at the time of the gift shall be considered the amount of the gift. #n case of real property, the provisions of Section 00(B) shall apply to the valuation thereof.
SEC. )*4. 1i"in( of Ret#n an, Pament of Tax. -
$A% Rei#ements. ! any individual ho ma6es any transfer by gift (except those hich, under Section , are exempt from the tax provided for in this 7hapter) shall, for the purpose of the said tax, ma6e a return under oath in duplicate. The return shall se forth" () 'ach gift made during the calendar year hich is to be included in computing net gifts4 (*) The deductions claimed and alloable4 (/) Any previous net gifts made during the same calendar year4 (-) The name of the donee4 and () Such further information as may be reuired by rules and regulations made pursuant to la.
$% Time an, P"a5e of 1i"in( an, Pament. ! The return of the donor reuired in this Section shall be filed ithin thirty (/) days after the date the gift is made and the tax due thereon shall be paid at the time of filing. 'xcept in cases here the 7ommissioner otherise permits, the return shall be filed and the tax paid to an authori:ed agent ban6, the 5evenue 8istrict $fficer, 5evenue 7ollection $fficer or duly authori:ed Treasurer of the city or municipality here the donor as domiciled at the time of the transfer, or if there be no legal residence in the &hilippines, ith the $ffice of the 7ommissioner. #n the case of gifts made by a nonresident, the return may be filed
ith the &hilippine 'mbassy or 7onsulate in the country here he is domiciled at the time of the transfer, or directly ith the $ffice of the 7ommissioner.
SEC. )*6. Definitions. ! 2or purposes of this Title, the terms 3gross estate3 and 3gifts3 include real and personal property, hether tangible or intangible, or mixed, herever situated" &rovided, hoever, That here the decedent or donor as a nonresident alien at the time of his death or donation, as the case may be, his real and personal p roperty so transferred but hich are situated outside the &hilippines shall not be included as part of hi s '(#oss estate' or '(#oss (ift' " &rovided, further, That franchise hich must be exercised in the &hilippines4 shares, obligations or bonds issued by any corporation or sociedad anonima organi:ed or constituted in the &hilippines in accordance ith its las4 shares, obligations or bonds by any foreign corporation eighty!five percent (0+) of the business of hich is located in the &hilippines4 shares, obligations or bonds issued by any foreign corporation if such shares, obligations or bonds have acuired a business situs in the &hilippines4 shares or rights in any partnership, business or industry established in the &hilippines, shall be considered as situated in the &hilippines" &rovided, 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 as a citi:en and resident of a foreign country hich at the time of his death or donation did not impose a transfer tax of any character, in respect of intangible personal property of citi:ens of the &hili ppines not residing in that foreign country, or (b) if the las of the foreign country of hich the decedent or donor as a citi:en and resident at the time of his death or donation allos a similar exemption from transfer or death taxes of every character or description in respect of intangible personal property oned b y citi:ens of the &hilippines not residing in that foreign country. The term ',efi5ien5' means" (a) the amount by hich tax imposed b y this 7hapter exceeds the amount shon as the tax by the donor upon his return4 but the amount so shon on the return shall first be increased by the amount previously assessed (or 7ollected ithout assessment) as a deficiency, and decreased by the amounts previously abated, refunded or otherise repaid in respect of such tax, or (b) if no amount is shon as the tax by the donor, then the amount by hich the tax exceeds the amounts previously assessed, (or collected ithout assessment) as a deficiency, but such amounts previously assessed, or collected ithout assessment, shall first be decreased by the amount previously abated, refunded or otherise repaid in respect of such tax.
