Since 1977

TAXATION SIA/TABAG
TAX.2903-Donor’s Tax OCTOBER 2020

LECTURE NOTES

A. NATURE OF DONOR’S TAX – it is a tax on the E. CLASSIFICATION OF DONORS

privilege of the donor to give; it is not a property 1) Citizen or Resident (RC/NRC/RA)
tax, but is a tax imposed on the transfer of property 2) Non-resident Alien (NRA)
by way of gift inter vivos (donation). i. With reciprocity
ii. Without reciprocity
The donor’s tax shall not apply unless and until
there is a completed gift. F. FORMAT OF COMPUTATION

B. DONATION – is act of liberality whereby a person FIRST DONATION OF THE YEAR

disposes gratuitously of a thing or right in favor of Gross Gifts PXXX
another, who accepts it (Art. 725, New Civil Code). Less: Exclusions/Deductions (XXX)
Net Gifts PXXX
C. PURPOSES OF DONOR’S TAX Less: Exempt gift (250,000)
1) To supplement the estate tax Net Gifts subject to Tax PXXX
Multiply: Rate 6%
2) To prevent the avoidance of income taxes. Donor’s Tax PXXX
Without donor’s tax, the donor may escape the Less: Tax Credit (XXX)
progressive rates of income taxation through
Donor’s Tax Payable PXXX
the simple expedient way of splitting his income
among numerous donees.
SECOND AND SUBSEQUENT DONATION
WITHIN THE YEAR
D. ESSENTIALS OF A TAXABLE DONATION (CF-
DAD) Gross Gifts, Current PXXX
1) Capacity of the donor to transfer property Less: Exclusions/Deductions,
Current (XXX)
2) Formal Requisites Net Gifts, Current PXXX
Add: Prior Net Gifts During the
FORMAL REQUISITES Calendar Year XXX
PERSONAL PROPERTY REAL Total Net Gifts PXXX
PROPERTY Less: Exempt gift (250,000)
Amount of P5,000 or More Regardless Total Net Gifts subject to Tax PXXX
donation less than of amount Multiply: Rate 6%
P5,000 Donor’s Tax PXXX
Form of Oral or in In In public Payments for Prior Gifts During the (XXX)
Donation writing writing, instrument, Calendar Year
otherwise otherwise Foreign donor’s tax paid (subject
VOID VOID to limitation) (XXX)
Additional Oral None None Donor’s Tax Payable PXXX
Requirement donation
requires Note: The computation of the donor’s tax is on
simultaneous a cumulative basis over a period of one
delivery calendar year.

3) Donative intent G. GROSS GIFT

4) Acceptance of the gift by the donee  Transfers subject to donor’s tax:

1) Direct gift;
NOTE: 2) Gift through creation of a trust;
The transfer of property by gift is perfected from 3) Condonation of debt;
the moment the donor knows of the acceptance 4) Repudiation of inheritance if:
by the donee. 1. Specifically and categorically done in favor
of identified heirs; and
5) Delivery, whether actual or constructive, of the 2. To the exclusion or disadvantage of other
subject matter co-heirs.
5) Renunciation by the surviving spouse of his/her
NOTE: share in the conjugal partnership or absolute
The transfer of the property is completed by the community after the dissolution of the marriage
delivery, either actually or constructively, of the in favor of the heirs of the deceased spouse or
donated property to the done. any other person/s;

Page 1 of 9 TAX.2903
 3) Encumbrance on the property donated
6) Transfer for insufficient consideration assumed by the donee

EXCEPTION: Real property in the Philippines 4) Diminution of gift provided by the

classified as capital asset. donor

FMV at the time of sale PXXX 5) Exemption under Special Laws

Less: Selling Price (XXX)
Taxable Gift PXXX 1. International Rice Research Institute
2. Ramon Magsaysay Foundation
COMPONENTS OF GROSS GIFT 3. Integrated Bar of the Philippines
RP TPP IPP 4. Development Academy of the
Donor w/in w/o w/in w/o w/in w/o Philippines
RC/NRC/RA √ √ √ √ √ √ 5. National Museum
NRA w/o √ X √ X √ X 6. National Library
Reciprocity
7. Archives of the National Historical
NRA w/ √ X √ X X X
Reciprocity
Institute
8. Museum of Philippine Costumes
 Gift from Common Property – the gift is 9. Intramuros Administration
taxable one-half to each donor spouse. 10. Political contributions

 Donation between husband and wife NOTE:

during the marriage For purposes of the donor’s tax, “NET GIFT”
shall mean the net economic benefit from the
GENERAL RULE: The gift is not taxable, as it is transfer that accrues to the donee. (RR No. 12-
declared void by law. 2018)

EXCEPTION: Moderate gifts between the Exemption or RC/NRC/RA NRA

spouses are valid. deduction
Gifts to the √ √
Husband and wife are considered as separate Government
and distinct taxpayer’s for purposes of the Gifts to educational, √ √
donor’s tax. However, if what was donated is a charitable, religious
conjugal or community property and only the etc.
husband signed the deed of donation, there is Encumbrances on gift √ √
only one donor for donor’s tax purposes, without assumed by donee
prejudice to the right of the wife to question the Diminution of gift √ √
validity of the donation without her consent provided by donor
pursuant to the pertinent provisions of the Civil
Code of the Philippines and the Family Code of I. RATE
the Philippines.
 The donor’s tax for each calendar year shall be
H. EXEMPTIONS OR DEDUCTIONS FROM six percent (6%) computed on the basis of the
GROSS GIFT total net gifts in excess of P250,000 exempt
gift made during the calendar year.
1) Gifts to the Government - gifts made to
or for the use of the National Government  The 6% tax shall apply regardless of the
or any entity created by any of its agencies relationship of the donor and the donee.
which is not conducted for profit, or to any
of its political subdivision of the said J. TAX CREDIT FOR DONOR’S TAX PAID TO A
government. FOREIGN COUNTRY

2) Gifts in favor of an educational and/or  Only resident or citizen can claim tax credit
charitable, religious, cultural or social
welfare, institution, accredited non-  Amount Deductible:
government organization, trust or a. Actual estate tax paid abroad
whichever is
philanthropic organization or research b. Limit
lower
institution or organization
Requisites:
1) Gifts in favor of the following entities:  Limit:
i. Educational 1) Only one foreign country is involved
ii. Charitable
iii. Religious Net Gift, foreign
X Philippine Donor’s
iv. Cultural World Net Gift
Tax
v. Social welfare
vi. Accredited non-government 2) Two or more foreign countries are
organization; involved (whichever is lower of the
vii. Trust or Philanthropic organization; following):
viii. Research institution or
organization; Limit A – Per Foreign Country
Philippine
2) Not more than 30% of the said gift shall Net Gift, per foreign country Donor’s
be used for administration purposes. World Net Gift X
Tax

Page 2 of 9 TAX.2903
 1) Philippine Embassy or Consulate in the
Limit B – By Total country where he is domiciled at the
time of the transfer, or
Net Gift all foreign countries Philippine 2) Directly with the officer of the
World Net Gift X Commissioner
Donor’s
Tax
N. NOTICE OF DONATION by a donor engaged
K. DEADLINE FOR FILING OF RETURN – within in business
30 days from date of donation.
In order to be exempt from donor’s tax, and to
NOTE: No allowed extension. claim full deduction of the donation given to
qualified-donee institutions duly accredited, the
L. DEADLINE FOR PAYMENT – pay as you file. donor engaged in business shall give a notice of
donation on every donation worth at least
P50,000 to the Revenue District Office (RDO)
M. PLACE OF FILING which has jurisdiction over his place of business
within 30 days after receipt of the qualified
1) Except in cases where the Commissioner donee institution’s duly issued Certificate of
otherwise permits, the return shall be filed and Donation, which shall be attached to the said
the tax paid to the following where the donor was Notice of Donation, stating that not more than
domiciled at the time of the transfer, or if there 30% of the said donations/gifts for the taxable
be no legal residence In the Philippines, with the year shall be used by such accredited non-stock,
Office of the Commissioner: non-profit corporation/NGO institution
a) An authorized agent bank (qualified-donee institution) for administration
b) Revenue District Officer purposes.
c) Revenue Collection Officer or

2) In the case of gifts made by a nonresident, the

return may be filed with:

MULTIPLE CHOICE

1. A tax imposed on the gratuitous transfer of b. Donation of personal (movable) property,

property between two or more persons who are the value of which is P5,000.
living at the time the transfer is made c. Donation of real (immovable) property, the
a. estate tax c. income Tax value of which is less than P5,000.
b. donor’s tax d. transfer tax d. Donation of real (immovable) property, the
value of which exceeds P5,000.
2. Donor’s tax is:
a. A property tax c. A business tax 7. One of the following is not a distinction between
b. A personal tax d. An excise tax donation inter vivos and donation mortis causa.
a. Donation inter vivos takes effect during the
3. Which of the following is not subject to donor’s lifetime of the grantor while donation mortis
tax? causa takes effect after the death of the
a. Donation mortis causa. grantor.
b. Donation which will take effect upon birth of b. Donation inter vivos is subject to donor's tax
the donee. while donation mortis causa is subject to
c. A creditor who, out of his affection, estate tax.
cancelled the debt of the debtor. c. Donation inter vivos requires a public
d. A parcel of land in U.S.A. donated by a document while donation mortis causa may
nonresident Filipino to a foreigner. not require a public document.
d. Donation inter vivos is valued at fair market
4. The following are the requisites of a donation for value at the time the property is given while
purposes of the donor’s tax, except one. donation mortis causa is valued at the fair
a. Capacity of the donor market value at the time of the death of the
b. Capacity of the donee decedent.
c. Delivery of the subject matter or gift
d. Donative intent 8. The donation of an immovable property shall be
made
5. Which of the following is subject to donor’s tax? a. In writing c. Either A or B
a. Those made between persons who were b. In public instrument d. Orally
guilty of adultery or concubinage at the time
of the donation. 9. Using the preceding number, acceptance by the
b. Those made to conceived children. donee may be made:
c. Those made to a public officer by reason of a. In same deed of donation
his office. b. In a separate notarized document
d. Those made between husband and wife c. E i t h e r A o r B
during their marriage. d. N e i t h e r A o r B

6. Which of the following donations inter vivos may 10. For the donation to be considered valid,
not require that it be in writing? acceptance of the donation must be made:
a. Donation of personal (movable) property, a. During the lifetime of the donor only.
the value of which exceeds P5,000. b. During the lifetime of the donee only.

Page 3 of 9 TAX.2903
 c. During the lifetime of the donor and the d. The donation is subject to 30% donor’s tax
donee. based on gross gift.
d. None of the choices.
Next three (3) questions are based on the following
11. When is the donation perfected? data:
a. The moment the donor knows of the Rudy, a resident citizen made the following
acceptance by the donee donations.
b. The moment the thing donated is delivered, a. To Mel, a land worth P450,000 in Manila.
either actually or constructively, to the b. To Leni, jewelry worth P100,000 in Japan.
donee c. To Chel, PLDT shares amounting to P150,000.
c. Upon payment of the donor’s tax d. To Leila, a building in Italy P1,600,000
d. Upon execution of the deed of donation mortgaged for P50,000 assumed by the donee.
e. To Allan, land in Davao worth P300,000.
12. A non-resident citizen donor is taxed on his f. To A. Trillanes, P300,000 cash, PNB New York
donation of properties: g. P200,000 receivable to Joy, 50% condoned by
a. Situated in the Philippines only. Rody
b. Wherever situated.
Rody also transferred the following properties:
c. Situated outside the Philippines only.
Selling Price FMV
d. Situated in the Philippines only subject to
Car, Makati P200,000 P300,000
the rule of reciprocity.
Car, Malaysia 300,000 200,000
Rest House,
13. Which of the following is taxable only with
Tagaytay 1,000,000 2,000,000
respect to properties donated within the
Rest House,
Philippines?
Malaysia 1,500,000 2,500,000
a. Resident citizen
b. Non-resident citizen 17. How much is the gross gift?
c. Resident alien a. P5,200,000 c. P4,100,000
d. Non-resident alien b. P4,200,000 d. P3,200,000

14. Which of the following statements is correct? 18. If he is a non-resident Alien, his gross gift is:
I. A donation by a nonresident alien of shares a. P3,200,000 c. P1,100,000
of stock of a domestic corporation is subject b. P1,200,000 d. P850,000
to donor’s tax if such corporation have
acquired business situs in the Philippines. 19. If he is a non-resident alien, and there is
II. A donation by a resident alien of shares of reciprocity law, his gross gift is:
stock of a foreign corporation will only be a. P850,000 c. P1,050,000
b. P950,000 d. P700,000
subject to donor’s tax if at least 85% of the
business of such corporation is located in
the Philippines. 20. Statement 1: Donor’s tax shall be levied,
III. A donation by a nonresident alien of bonds assessed, collected and paid upon the transfer
of a foreign corporation (90% of the of property by any person, resident or non-
business of such corporation is located in resident, as a gift.
the Philippines) is subject to donor’s tax. Statement 2: The donor’s tax shall apply
whether the transfer is in trust or otherwise,
IV. A donation by a nonresident citizen of a
whether the gift is direct or indirect, and
franchise is subject to donor’s tax even if whether the property is real or personal,
such franchise is exercised outside of the tangible or intangible.
Philippines. a. True, True c. True, False
a. III only c. III and IV only b. False, False d. False, True
b. IV only d. II, III and IV only
21. A gift that is incomplete because of reserve
powers becomes complete when:
15. If a donor is a non-resident alien and the rule of I. The donor renounces the power
reciprocity applies, which of the following II. His right to exercise the reserve power
properties will not form part of his gross gift? ceases because of the happening of
a. Real properties in the Philippines some event or contingency or the
b. Tangible personal properties within the fulfillment of some condition other than
Philippines because of the donor’s death.
c. Intangible personal properties within the a. I only c. Either I or II
Philippines b. II only d. Neither I nor II
d. All of the choices
22. Which of the following is subject to donor’s tax?
16. X, a multinational corporation not doing I. Pedro donated a house and lot to Ana.
business in the Philippines, donated 100 shares Pedro reserved the right to live in the
of stock of said corporation to Mr. “Y”, a Filipino house and lot until he dies.
citizen. What is the tax liability, if any, of “X” II. Stanley donated a commercial complex
corporation? apartment to Wendy. Stanley reserved
a. The donation is not subject to donor’s tax. the right to the rentals for five years
b. The donation is subject to 30% donor’s tax from the date of donation. Stanley died
based on net gift. on the third year.
c. The donation is subject to graduated rates III. Angelica donated a mango farm to
based on net gift. Sergio. Angelica reserved the right to
Page 4 of 7 TAX.2903
 the fruits for five years from the date of b. A resident alien made a gift of P200,000 to
donation. Angelica died on the seventh his daughter on account marriage.
year. c. A non-resident citizen gives his girlfriend a
a. II only c. I and II only diamond ring worth P300,000 as a birthday
b. III only d. None of the above gift.
d. A and B are the only heirs of C. A renounces
23. When an indebtedness is cancelled without any his share of inheritance in favor of B.
service rendered by the debtor in favor of the
creditor, the forgiveness of debt will result to: 28. Jay sold his car to Jana for P200,000. Jay’s car
a. taxable income costs P500,000, and had a fair market value of
b. distribution of dividend P400,000 at the time of sale. What is the tax
c. taxable donation consequence of the sale?
d. taxable estate a. There is a taxable gift of P200,000
b. There is a net gift of P200,000
24. If an individual performs services for a creditor c. The transfer is for insufficient consideration,
who in consideration thereof cancels the debt, hence, not subject to donor’s tax
the cancellation of indebtedness may amount to d. The transfer involved a personal property,
a hence, not subject to donor’s tax
a. Gift
b. Capital contribution 29. Cito Yu has a building located in Shorthorn
c. Donation inter vivos Quezon City currently leased to various tenants.
d. Payment of income Since he is old already and wants to retire from
active business, he sold the same to Janjan, his
25. What is the tax implication if a corporation son, for 20 million pesos. The value of the
condones the debt of a shareholder because of building at the time of sale is 40 million pesos.
a good thing done by the latter to the Which of the following statements is correct?
corporation? a. The sale is for sufficient consideration
a. The condonation is based on the liberality of b. The sale is for insufficient consideration
the corporation, therefore, it is subject to subject to donor’s tax
donor’s tax. c. The sale is for insufficient consideration but
b. The condonation is subject to donor’s tax on exempt from donor’s tax since the object is
the corporation because it is based on its a real property
liberality. Moreover, it is equivalent to a d. The sale is subject to capital gains tax and
payment of dividend income on the donor’s tax.
shareholder, which is therefore, subject to a
final withholding tax on income of 10%. 30. Pedro sold to Juan (brother-in-law) his
c. It is tantamount to a declaration of residential lot with a market value of
dividend. Therefore, it is an income which P1,000,000 for P600,000. Pedro bought the lot
three years ago for P400,000. Juan is financially
is subject to 10% final withholding tax on
capable of buying the lot. What tax should be
the shareholder. However, it is not subject imposed and collected from Pedro as a result of
to donor’s tax on the corporation. the transaction?
d. It is just a simple case of extinguishment of a. Capital gains tax
an obligation which is neither subject to b. Donor’s Tax
income tax on the part of the shareholder c. Real property Tax
nor a donor’s tax on the corporation. d. Capital gains tax and Donor’s Tax

31. Pedro donated to Juan (brother-in-law) his

26. Which of the following renunciations shall not be
residential lot with a market value of
subject to donor’s tax?
P1,000,000. Pedro bought the lot three years
a. Renunciation by the surviving spouse of
ago for P400,000. What tax should be imposed
his/her share in the conjugal partnership or
and collected from Pedro as a result of the
absolute community after the dissolution of
transaction?
the marriage in favor of the heirs of the
a. Capital gains tax
deceased spouse or any other person/s
b. Donor’s Tax
b. General renunciation by an heir, including
c. Real property Tax
the surviving spouse, of his/her share in the
d. Capital gains tax and Donor’s Tax
hereditary estate left by the decedent
c. Renunciation by an heir, including the
32. Alpha Corporation is transferring its office from
surviving spouse, of his/her share in the
Makati to Manila. It sold to Omega Corporation
hereditary estate left by the decedent
its existing lot and office building valued at
categorically in favor of identified heir/s to
P80M for P60M. What tax should be imposed
the exclusion or disadvantage of the other
and collected from Alpha Corporation as a result
co-heirs
of the transaction?
d. None of the choices
a. Capital gains tax
b. Donor’s Tax
27. Which of the following events is not subject to
c. Real property Tax
donor’s tax?
d. Capital gains tax and Donor’s Tax
a. A Filipino citizen donated a parcel of land
located in the United States to B, non-
33. Which of the following is not a deduction from
resident alien.
gross gift?

Page 5 of 7 TAX.2903
 a. Unpaid mortgage on the donated property
assumed by the donee On June 9, 2019, they also donated to the child of Mrs.
b. Unpaid real estate tax on the property Salomon by first marriage, jewelry worth P75,000.
donated assumed by the donee
c. Diminution on the donated property Finally on December 25, 2019, they donated to the
specifically provided by the donor nephew of Mr. Salomon a building worth P750,000, 40%
d. Unpaid donor’s tax on the donated property of which was co-owned by their Kumpare who agreed to
assumed by the donee the donation and executed the necessary documents
donating his share.
34. All of the following except one are exempt from
gift tax under special laws 39. The donor’s tax due on the February 25:
a. Donation to Integrated Bar of the a. P14,000 for Mr. & Mrs.
Philippines b. P3, 600 each for Mr. & Mrs.
b. Donation to Development Academy of the c. P4, 000 each for Mr. & Mrs.
Philippines d. P0 for each spouse
c. Donation to Philippine Institute of Certified
Public Accountants 40. The donor’s tax due on the June 9:
d. Donation to International Rice Research a. Mr. – P2,250 for each spouse
Institute b. Mr. – P11,250; Mrs. – P4,700
c. Mr. – P11,250; Mrs. – P1,100
35. All of the following, except one, are exempt d. Mr. – P11,250; Mrs. – P1,875
from donor's tax
a. Donation to the Philippine National Red 41. The donor’s tax due on the December 25:
Cross a. Mr. – P9, 875; Mrs. – P13, 500
b. Donation to the Development Academy of b. Mr. – P67, 500; Mrs. – P67, 500
the Philippines c. Mr. – P13,500; Mrs. – P13, 500
c. Donation directly given to the victims of the d. Mr. – P9, 000; Mrs. – P67, 500
typhoon Yolanda
d. Donation to the City of Davao for public 42. The donor’s tax due for their Kumpare on
purpose December 25 is:
a. P90,000 c. P3,000
36. A tax minimization scheme which is done by b. P18,000 d. P0
spreading the gift over numerous calendar
years to avail of lower tax liability - The next three (3) questions are based on the following:
a. Spread-out method Mr. and Mrs. Pinagpala made the following donations
b. Donation of life insurance during the calendar year 2019 (common property
c. Splitting of gift unless otherwise stated):
d. Void donation Date Donations
January 2 To Maria, legitimate daughter, 10,000
37. Your bachelor client, a Filipino residing in shares which are not traded in the stock
Quezon City, wants to give his girlfriend a gift of exchange. The book value at the time of
P400,000 during 2018. He seeks your advice, donation was P50 per share.
for purposes of reducing if not eliminating the
donor’s tax on the gift, on whether it is better To Juana, family friend of couple, on
for him to give all of the P400,000 on Christmas account of her birthday, P20,000.
(December 25, 2018) or to give P200,000 on
Christmas and the other P200,000 on January February To Petra, legitimate daughter, on
1, 2019. 3 account of her marriage on February 1,
2020, a piece of antique jewelry from
Which of the following will be your advice? the capital property of Mr. Pinagpala.
a. Split the donation to totally relieve the The fair market value of the jewelry was
donor from the donor’s tax. P150,000.
b. Split the donation to reduce the donor’s tax.
c. Splitting the donation will not reduce the To Estela, legitimate daughter, on
applicable donor’s tax. account of her graduation, a piece of
d. The gift should be made on account of their land costing P500,000. The fair market
planned marriage to avail of dowry value RPT Declaration at the time of
exemption. donation was P1,000,000. Its zonal
value was P1,200,000. The piece of land
38. When the donee or beneficiary is a stranger, the had an unpaid mortgage of P100,000
tax payable by the donor for donations which was assumed by the donee.
beginning January 1, 2018 shall be:
a. 30% of the gross gifts. To Lourdes, Mrs. Pinagpala's sister; on
b. 30% of the net gifts. account of her forthcoming marriage,
c. 6% of net gifts in excess of P250,000 cash P100,000.
d. Based on the graduated rates with the first
P100,000 net gift exempt or 30 % . October 4 To Bantay Bata, a non-stock non-profit
organization, P250,000.
The next four (4) questions are based on the following
data: To Belmont Shipping Company, a piece
On February 25, 2019, Mr. and Mrs. Salomon donated of land valued at P700,000.
their conjugal land worth P500,000 to their three sons.
One of them was getting married that year.

Page 6 of 7 TAX.2903
 To Anecito, legitimate son, cash of d. Both statements are false
P200,000.
51. Statement 1: Only one return shall be filed for
43. How much is the donor’s tax payable of Mr. several gifts (donations) made by a donor to
Pinagpala on gifts made on January 2? different donees on the same date.
a. P19,600 c. P6,600 Statement 2: If the donation involves
b. P7,000 d. P600 conjugal/community property, each spouse
shall file separate return corresponding to
44. How much is the tax payable of Mr. Pinagpala his/her respective share in the
on gifts made on February 3? conjugal/community property.
a. P58,400 c. P36,800 a. True, False c. True, True
b. P51,800 d. P45,000 b. False, True d. False, False

45. How much is the tax payable of Mr. Pinagpala 52. Statement 1: The Commissioner of Internal
on gifts made on October 4? Revenue shall have authority to grant under
a. P126,000 c. P111,000 meritorious cases, a reasonable extension of not
b. P111,800 d. P27,000 more than 30 days for filing the donor’s tax
return.
46. Donor’s tax credit is not allowed to a donor who Statement 2: In case of gifts made by
is a: nonresidents, the return may be filed with
a. Resident citizen Philippine Embassy or Consulate in the country
b. Non-resident citizen where he is domiciled at the time of the transfer,
c. Resident alien or directly with the Office of the Commissioner.
d. Non-resident alien a. Only statement 1 is correct
b. Only statement 2 is correct
Use the following data for the next two (2) questions: c. Both statements are correct
47. During the current year, Mr. and Mrs. Cabarles,
d. Both statements are incorrect
non-resident citizens, donated the following:
Sept. 25: To Leona, a legitimate child, on account 53. When a donor with several donations during the
of marriage last month, a conjugal year fails to file the donor’s tax return for each
property located in the Philippines, FMV, of the dates that donations were made (select
P620,000. the wrong statement):
a. Such failure shall be cured by filing a
To Leo, nephew of Mr. Cabarles, on
donor’s tax return at the end of the year
account of marriage, a property located
reflecting all donations made within the
in USA exclusively owned by him with
year and paying the taxes shown in that
fair market value of P150,000 (gift tax
one return.
in USA, P4,000)
b. Each failure is subject to penalties for non-
Oct. 9 : To Leonor, a legitimate child, conjugal filing of return and nonpayment of the tax
property in the Philippines with fair on time.
market value of P100,000. c. He can voluntarily file late the donor’s tax
return for each date that donations were
The gift tax payable on the September 25 gifts made and make payments on the tax due
of the husband is: shown on each return, with penalties.
a. P8,000 c. P8,600 d. None of the above
b. P3,000 d. P12,600
54. Poling Bobadila, married, a resident alien, made
48. Using the data in the preceding number, the gift the following donations of common properties,
tax payable on the October 9 gift of the husband with the consent of his spouse, for the year
is: 2019:
a. P8,000 c. P2,500
b. P3,000 d. P15,000 TIN: 123-345-678-00000
Date Donee Particulars
49. Mr. Riano made the following gifts to his 11-14-19 Mike (TIN BMW Car
relatives in 2019: No. 635- with engine
Phils. USA UK Italy
425-234- number
Gross gift P750,000 P500,000 P250,000 P500,000
00000) 112233
Deductions 250,000 200,000 150,000 150,000
Tax paid — 25,000 12,000 10,000
amounting to
2.5million
The gift tax due after tax credit is: pesos. It has
a. P35,600 c. P33,520 unpaid
b. P25,600 d. P39,000 chattel
mortgage
50. Statement 1: A donation can be both a part of amounting to
the gross gift of the donor and a taxable income P500,000
to the donee. assumed by
Statement 2: A donation may be exempt from Mike.
donor’s tax but not necessarily a deduction from 12-23-19 Enrico (TIN House and
the donor’s gross income. No. 542- lot, with FMV
a. Only statement 1 is true 715-614- of 10M and
b. Only statement 2 is true 00000 ZV of 12M,
c. Both statements are true located in

Page 7 of 7 TAX.2903
 Brgy. Di
Mahanap, Requirement: Fill up the donor’s tax return.
Quezon City
with TCT No. - done –
98547.

Page 8 of 7 TAX.2903