Gift or Donation

Act of liberality or generosity.

Donor – Individual, citizen or resident alien, not citizen & non-resident with capacity to contract and juridical person.

Donee – individual, relative even minors, acceptance thru the parents or guardians, it can be stranger or juridical persons.

How executed?

Real or immovable property, public document, deed of donation, accepted by donee in the same document or separately duly annotated in the deed of donation.

Peronal or movable property: 5000 or less, oral or verbal, immediate delivery needed, exceeds 5000, donation or acceptance in writing.

Tax on Donation

Progressive – Increase in base, increase in rate for relative donee.

Proportional –  fixed percentage for stranger donee.

Excise –  Privilege to transfer property without consideration.

Direct – paid by the statutory taxpayer.

Ad valorem – according to value of the net gift.

National –  Levy and collection by the national government.

General – Fiscal or revenue purpose, not special or regulatory.

Purposes ;

Compensation for loss of income tax revenue.


Aggregate net gifts (if donee is relative) in one calendar year.

Gross Gifts                         xx  (Citizen/ Resident Properties within the Phils.)

Deductions/ Exemptions  xx

Taxable Net Gifts                 xx

Progressive Tax rates 30%, if donee is a stranger.


Liabilities assumed by donee:

a. 10000 dowry or gift made on account of marriage(before celebration or within 1 year thereafter) by parents to each of their legitimate, recognized natural or adopted children (per donor per child)

b. Gifts made to the government.

c. Gifts made to non-profit organization.

Filing within 30 days from date of gift.

Not Citizen / Non resident;

Properties within the Philippines only.

Liabilities assumed by donee:

  • Not applicable dowry.
  • Gifts Made to government.
  • Gifts made to NGOs.

About Jonathan Ruiz CPA

Entrepreneur, CPA Mentor, Stock market Newbie Mentor, Influential Author and Master's Degree in International Business graduate in Hult International Business School, UK. A father of two lovely daughters.
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