Who can claim Tax Credit?
Only Citizen or Resident Alien Donor
Limitations on Tax Credit:
Foreign Taxable Net Gifts / Total Taxable Net Gifts X Philippine Gift Tax
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
- Time of Filing – within 30 days from date of Gift.
- 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.
- 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.