Tax Credit and Filing of Donor’s Tax

Who can claim Tax Credit?

Only Citizen or Resident Alien Donor

Limitations on Tax Credit:

1st Limitation

Foreign Taxable Net Gifts / Total Taxable Net Gifts  X Philippine Gift Tax

2nd Limitation

Total Foreign Taxable Net Gifts / Total Taxable Net Gifts X Philippine Gift Tax

Tax Paid in Foreign Country Compared to Donor’s Tax Philippines whichever is lower.

Filing of Return and Payment of Tax

  1. Time of Filing – within 30 days from date of Gift.
  2. Place of Filing – Authorized Agent Bank, RDO , Collection Agent or Duly Authorized Treasurer of the City or Municipality, If there be no legal residence in the Philippines with the Office of Commissioner. Non Resident Donor may file the return with the Philippine Embassy or Consulate in the country where he is domiciled or get directly with Office of Commissioner.
  3. Time of Payment -at the time the return is filed.

Surcharges (Ad Valorem Penalty)

50% False or Fraudulent return willfully filed

Willful neglect to file the return on Time.

25% failure to file a return and pay the tax due thereon

If the return is not filed with the proper internal revenue officer.

Failure to pay on time the deficiency shown in the notice of assessment.

Interest 20% per annum for failure to pay tax per return on time.



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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