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

 

 

 

 

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About PAM Academy Founder

Newbie Mentor and one of the influential author in the Philippines setting. His also the founder of PAM Academy and Developer of PAM PSE TRACKER application.
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