- Citizen or Resident Alien Donor:
- Real Property within and without the Philippines.
- Tangible and Intangible Property within and without the Philippines.
- Not a Citizen or Non- Resident Donor:
- Real Property within the Phil.
- Intangible and Tangible Personal Property within Phil.
Reciprocity Rule ; Intangible Personal Property of a not citizen, non resident donor. It shall be exempt from Donor’s Tax if either of one or two conditions are present:
- The country where the said donor is a citizen and resident does not impose a transfer tax on intangible personal property of Filipinos not residing in that country.
- The country where the said donor is a citizen and resident allows a similar exemption from transfer tax on intangible personal property of Filipinos residing in that country.
Transfer for less than adequate and full consideration :
Where property other than real property classified as capital asset is transferred for adequate and full consideration in money or money’s worth, then the amount by which the fair market value exceeded the value consideration shall be deemed a gift and shall be included in the amount of gifts made during the calendar year.
Valuation of Gross Gift
- Valuation Date – at the time the gift is made.
- Basis of Valuation – FMV of property donated. In case of Real Property valuation is the FMV or zonal value as determined by the commissioner, or the FMV as shown in the schedule of values fixed by the city or provincial assessor whichever is higher.