Valuation and Exemptions from Gross Gift

Valuation of Gross Gift

  1. Valuation date – at the time the gift is made.
  2. Basis of Valuation – FMV of the property donated. In the case of real property, valuation is FMV or Zonal Value as determined by BIR commissioner or the FMV as shown in the schedule of values fixed by the city or provincial assessor whichever is higher.

Exemptions from Gross Gift

  1. If donor citizen or resident alien:

a. 10 000 – dowries or gifts made on account of marriage given by parents to each of their:

  1. legitimate
  2. recognized natural child
  3. adopted children
  • a gift conjugal or community property to the children of both spouses is to be considered that each spouse is a donor of his or her interest in the property donated, hence each spouse can claim sparate exemption.

2. Gifts made to the National Government or political subdivision.

3. Gifts in favor of the following non profit institution, foundation or trust, educational, charitable,religious, cultural, social welfare, Philantrophic organization, research institution and accredited nongovernment organization.

Non Profit Institution means organized as non stock entity,paying no dividends, governed by trustees who received no compensation and devoting income to the accomplishment of its purposes.

Special Laws Exempt from Donations

  1. IRRI – International Research Rice Institute
  2. Ramon Magsaysay Award Foundation
  3. Southern Philippines Development Administration
  4. Philippines American Cultural Foundation
  5. Integrated Bar of the Philippines
  6. Development Academy of the Philippines
  7. National Social Action Council
  8. Museum of Philippine Costumes
  9. Aqua Culture Department of Southeast Asia Fisheries Development Center of the Philippines
  10. Intramuros Administration
  11. Philippine Inventors Commission

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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