Computation of Donor’s Tax

Donor’s tax calculated on a cumulative basis over a period of one calendar year.

On the First Donation:

Gross Gifts                              xxx

Less: Exemption                   (xx)

Net Taxable Gifts                 xxx

Multiply by the Tax Rates   x

Donor’s Tax Due                 xxx

On Subsequent Donations within the same calendar year:

Gross Gifts                                  xxx

Less : Exemptions                     (xx)

Net Taxable Gifts                       xxx

Add All Previous Net Gifts      xxx

Aggregate Net Gifts                   xxx

*Donor’s Tax on Aggregate Net Gifts               xxx

Less: Donor’s Tax on previous Net Gifts         (xx)    during the year

Donor’s Tax Due  Current Gift                            xxx

Gift to Stranger

Donee or beneficiary is a stranger, the tax payable by the donor shall be 30% of net gifts.

For purposes of Donor’s Tax, the following are not strangers;

A. Brother and sister whether half or whole blood.

B. Relative consanguinity within 4th degree relationship.

*Children of first cousin of the donor is a stranger.

source; Transfer and Business Taxation by Edwin Valencia and Gregorio Roxas






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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