Podcast
Questions and Answers
What is the required number of copies for a Donor's Tax return?
What is the required number of copies for a Donor's Tax return?
When is the deadline for filing a Donor's Tax return after making a donation?
When is the deadline for filing a Donor's Tax return after making a donation?
Which of the following is NOT required in the content of the Donor’s Tax return?
Which of the following is NOT required in the content of the Donor’s Tax return?
Where can the Donor's Tax return NOT be filed?
Where can the Donor's Tax return NOT be filed?
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Which formula represents the computation for the Foreign Tax Credit for one Foreign country?
Which formula represents the computation for the Foreign Tax Credit for one Foreign country?
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What is the donor’s tax based on?
What is the donor’s tax based on?
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How is the net gift calculated in the donor’s tax model?
How is the net gift calculated in the donor’s tax model?
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Which value should be used for the valuation of real property in donations?
Which value should be used for the valuation of real property in donations?
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When is a donation considered perfected?
When is a donation considered perfected?
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How should the donation of conjugal property be reported by spouses?
How should the donation of conjugal property be reported by spouses?
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What type of value should be used for unlisted shares of stocks?
What type of value should be used for unlisted shares of stocks?
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What are encumbrances on properties assumed by the donee considered for donor's tax purposes?
What are encumbrances on properties assumed by the donee considered for donor's tax purposes?
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What is the required form for reporting donor's tax?
What is the required form for reporting donor's tax?
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Study Notes
Donor's Tax
- Imposed on annual net gifts, calculated on a calendar-year basis.
- Tax paid within 30 days of each donation.
- Net gift represents the net economic benefit transferred to the donee.
Donor's Tax Calculation Model
- Net gift value
- Less: Exempt donations
- Net gifts subject to tax (multiplied by 6%) = Donor's tax to date
- Less: Tax due from prior donations = Donor's tax still due
Valuation of Net Gifts: Valuation Rules
- Real Property: Higher of zonal value or assessor's value.
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Personal Property:
- Shares of Stocks: Listed – average of high and low prices on donation date; Unlisted – par value (preferred), book value (common).
- Other Properties: Newly purchased – purchase price; Old items – secondhand value; Monetary claims – contract amount.
Valuation of Net Gifts: Timing
- Gifts valued at the date of donation completion/perfection (acceptance by donee).
- Conditional donations: Perfected upon donee fulfilling conditions or donor waiving them.
Valuation of Net Gifts: Common Properties
- Husband and wife are separate taxpayers for donor's tax.
- Donation of conjugal property: Each spouse is considered to have donated half.
- Separate returns required for each spouse.
Valuation of Net Gifts: Encumbrances
- Encumbrances assumed by the donee reduce the gift's value.
- These are deductible as they're not considered gratuitous.
Donor's Tax Return (BIR Form 1800)
- Separate return for each donation date within the year.
- Single return for donations on the same day, even to multiple donees.
- Deadline: 30 days after donation.
- Triplicate copies required.
- Includes: Each gift, deductions, prior gifts, donee name, additional CIR-required info.
Filing Donor's Tax Return
- Authorized Agent Bank
- Revenue District Office
- Revenue Collection Officer
- City/Municipality Treasurer (donor's domicile)
- Commissioner's Office (if donor has no Philippine residence)
Foreign Tax Credit
- One Foreign Country: (Foreign Country Net Gifts / World Net Gifts) * Philippine Donor's Tax Due
- Multiple Foreign Countries: (Total Foreign Country Net Gifts / World Net Gifts) * Philippine Donor's Tax Due
- Credit limited to residents or citizens.
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Description
Explore the fundamentals of Donor's Tax, including how it is imposed on annual net gifts and the calculations involved. Understand the valuation rules for both real and personal property, and the timing for determining the value of gifts. This quiz will help clarify the nuances of donor taxation.
