Name: Quennie G.

Valdehueza Section: BSMA 2 Score_______

Subject: Tax 2 Teacher: Merla A. Tampipi Date: March 16 and 18. 2020

MODULE 1: LESSON 1
Learning Activity Sheet No. 1

Lesson/Topic Basic Concepts of Donation

Learning Target(s): To determine the Net Taxable gift and Tax due for each type of Donations
made by an individual whether single or married and to prepare the
cumulative presentation of the donors’ tax return.
Reference(s): WinluBallada, Transfer and Business Taxation- Made Easy, 2019 Issue, 17th
Edition. P. 197-227.
Concept/Digest :

There are many reasons why a person makes a gift during life, rather than by will, after
death. One is to avoid estate taxes. Another reason is to have absolute assurance that the intended donee
receives the gift. The only way for a donor to be absolutely certain that an intended donee receives a gift
is for the donor to make the gift directly to the donee during life.

Donation is an act of liberality whereby a person disposes gratuitously of a thing or right in

favour of another, who accepts it. The person who disposes of the thing or right is called the donor while
the one who accepts it is the done.

As per Rev. Reg.12-2018 of the TRAIN Law provides that in order that the donation of an
immovable may be valid, it must be made in a public Deed of Donation or in a separate public document,
but it shall not take effect unless it is done during the lifetime of the donor. If the acceptance is made in a
separate instrument, the donor shall be notified thereof in an authentic form, and this step shall be noted
in both instruments.

The TRAIN LAW or RA 10963 amends Section 99(A) of the NIRC relative to the donor’s tax
rate which is now at 6% uniform rate in excess of P250,000 exempt gift; the 30% donor’s tax rate when
done is a stranger under Section 99(B) has been repealed:

Section 99.Rate of Tax payable by Donor.-

(A) In General- The tax for each calendar year shall be six per cent (6%) computed on the basis of the
total gifts in excess of Two hundred fifty thousand pesos (P250,000) exempt gift made during the
calendar year.

Classification of Individuals:
a. Resident Citizen, Non-Resident Citizen and Resident Alien Donors-
The gross gift composition of a Resident Citizen, Non-Resident Citizen and Resident
Alien Donor shall include of his property wherever situated. It might be real or immovable
property , Tangible personal property or intangible personal property.
Where a property , other than real property is transferred for less than an adequate and
full consideration in money or money’s worth , then the amount by which the fair market
value of the property exceeded the value of the consideration shall , for the purpose of the tax

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 imposed , be deemed a gift and shall be included in computing the amount of gifts made
during the calendar year: Provided, however, that a sale, exchange, or other transfer of
property made in the ordinary course of business ( a transaction which is bonafide, at arm’s
length, and free from any donative intent ), will be considered as made for an adequate and
full consideration in money or money’s worth.

Gift Gain
Fair Market Value P250, 000 Selling Price P185, 000
Less: Consideration 185,000 Less: Cost 125.000
Deemed Gift P 65,000 Gain P60,000

 The difference between the fair market value of the jewelry sold and the consideration received
by Cindy of P65, 000 is deemed donation or gift. In this case, seller Cindy is the donor while
buyer Faye the donee. The donation is subject to donor’s tax.
 The jewelry is a personal property classified as capital asset. For income tax purposes, only 50%
of the gain of P60, 000 shall be taken into consideration because the seller is an individual and
because the capital asset has been held for more than 12 months.

B. Non-Resident Alien Donor.

If the donor was a non-resident alien, only his property located in the Philippines shall
form part of his gross gift.
The inclusion of intangible personal property located in the Philippines in the gross gift
of a non-resident alien donor is subject to reciprocity rule. Such intangible personal property
shall not be included in the following cases:

1. If the donor at the time of his donation was a resident of a foreign country which at the time
of donation did not impose a transfer tax of any character in respect of intangible personal
property of citizens of the Philippines not residing in that foreign country, or
2. If the laws of the foreign country of which the donor was a resident at the time of donation
allow a similar exemption from transfer taxes or death taxes of every character in respect of
intangible personal property owned by the citizens of the Philippines not residing in that
foreign country.

Illustration:
A. On the occasion of his daughter’s birthday, Mr. Santos gifted her with the
following:

House and lot in the Philippines P1, 500,000

Car in the Philippines 500,000
Bank deposit in Japan 800,000
Shares of stock in Japan 300,000
Copyright used in the Philippines 400,000

Required: Compute for the gross gift of Mr. Santos if he is a:

1. Filipino residing in the Philippines

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 2. Japanese residing in Japan, with reciprocity.
3. Japanese residing in China.

Solution:

1. Filipino residing in the Philippines

House and lot in the Philippines P1, 500,000

Car in the Philippines 500,000
Bank deposit in Japan 800,000
Shares of stock in Japan 300,000
Copyright used in the Philippines 400,000
Total Gross gift P 3,500,000

2. Japanese residing in Japan, with reciprocity.

House and lot in the Philippines P1, 500,000

Car in the Philippines 500,000
Total Gross gift P 2,000,000

3. Japanese residing in China.

House and lot in the Philippines P1, 500,000

Car in the Philippines 500,000
Copyright used in the Philippines 400,000
Total Gross gift P 2,400,000

B. Donations were made on January 30, 2018 at P2, 000,000; on March 30, 2018 at P1, 000,000;
and August 15, 2018 at P500, 000. How much is the donor’s tax due on these donations?

Solution:

Date of donation Amount Donor's Tax

1. January 30, 2018 P2, 000,000

January 30, 2018 donation 2.000,000

Less: Exempt Gift (250,000)
Net gift In the January Donation P 1,750,000
Tax Due P105, 000

2. March 30, 2018 1,000,000

March 30, 2018 donation 1,000,000

Add: January 30, 2018 donation 2,000,000
Total 3,000,000
Less: Exempt Gift 250,000

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Net gift P2, 750,000
Tax Due Thereon 165,000
Less: Tax due/paid on Jan. donation 105,000
Donors Tax Payable on the March Donation 60,000

3. August 15, 2018 500,000

August 15, 2018 500,000

Add: January 2018 donation 2,000,000
Add: March 2018 donation 1,000,000
Less: Exempt Gift (250,000)
Net gift P3, 250,000
Tax Due Thereon 195,000
Less: Tax due/paid on Jan/Mar. don. 165,000
Tax Due / Payable on the Aug. donation P30, 000

SEC. 15.FILING OF RETURNS AND PAYMENT OF DONOR’S TAX. –

(A) Requirements. – Any person making a donation (whether direct or indirect), unless the donation is
specifically exempt under the NIRC or other special laws, is required, for every donation, to accomplish
under oath a donor’s tax return in duplicate. The return shall set forth:

1. Each gift made during the calendar year which is to be included in gifts;
2. The deductions claimed and allowable;
3. Any previous net gifts made during the same calendar year;
4. The name of the donee; and
5. Such further information as the Commissioner may require.

Time and place of filing and payment. – The donor’s tax return shall be filed within thirty (30)
days after the date the gift is made or completed and the tax due thereon shall be paid at the same time
that the return is filed. Unless the Commissioner otherwise permits, the return shall be filed and the tax
paid to an AAB, the Revenue District Officer and Revenue Collection Officer having jurisdiction over the
place where the donor is domiciled at the time of the transfer, or if there be no legal residence in the
Philippines, with the Office of the Commissioner.

Valuation of gift

Property given as gross gift will be valued at fair market value at the time of the donation.

The Bureau of Internal Revenue has allowed the following reductions of the gross gift to arrive at
the Taxable gifts:

a. Encumbrance (e.g. mortgage) on the property donated, if assumed by the done;

b. Those specifically provided by the donor as a diminution of the property donated.

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Joint donation by husband and wife

A joint Donation by husband and wife will be considered a donation by each, of one half of the
donation. There will be separate donor’s tax return.

Illustration: A donation of P600, 000 was made by husband and wife to a legitimate child.

The donor’s tax was computed as follows:

Husband Wife
Gifts made (for each, I/2 of P600, 000) P300, 000 P300, 000
Less: Exempt gift 250,000 250,000
Net Gift P 50,000 P 50,000
Donor’s tax (P50K x .06) P3, 000 P3, 000

SEC. 17.EXEMPTION OF CERTAIN GIFTS. – The following are exempt from the donor’s tax

1. Gifts made to or for the use of the National Government or any entity created by any of its
agencies which is not conducted for profit, or to any political subdivision of the said Government;
and
2. Gifts in favour of an educational and/or charitable, religious, cultural or social welfare
corporation, institution, accredited nongovernment organization, trust or philanthropic
organization or research institution or organization: Provided, however, That not more than thirty
percent (30%) of said gifts shall be used by such donee for administration purposes. For the
purpose of this exemption, a ‘non-profit educational and/or charitable corporation, institution,
accredited nongovernment organization, trust or philanthropic organization and/or research
institution or organization’ is a school, college or university and/or charitable corporation,
accredited nongovernment organization, trust or philanthropic organization and/or research
institution or organization, incorporated as a non-stock entity, paying no dividends, governed by
trustees who receive no compensation, and devoting all its income, whether students’ fees or
gifts, donation, subsidies or other forms of philanthropy, to the accomplishment and promotion of
the purposes enumerated in its Articles of Incorporation.

C) Notice of donation by a donor engaged in business. –

In order to be exempt from donor’s tax and to claim full deduction of the donation given to
qualified- donee institutions duly accredited, the donor engaged in business shall give a notice of
donation on every donation worth at least Fifty Thousand Pesos (P50,000) to the Revenue District
Office (RDO)which has jurisdiction over his place of business within thirty (30) days after receipt of the
qualified donee institution’s duly issued Certificate of Donation, which shall be attached to the said
Notice of Donation, stating that not more than thirty percent (30%) of the said donation/gifts for the
taxable year shall be used by such accredited non-stock, non-profit corporation/NGO institution
(qualified-donee institution) for administration purposes pursuant to the provisions of Section 101(A)(3)
and (B)(2) of the NIRC.

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Questions:

1. On June 01, 2019, Kim, donated P1, 500,000 to her daughter Victoria, who was getting
married. Bank deposits in Taiwan worth P500, 000, Shares of stock in the Philippines
amounting to P600, 000. Delia gave no other gift during the calendar year. What is the
donor’s tax implication on Celia’s donation if :

a. A Filipino residing in the Philippines.

Cash P 1, 500,000
Bank Deposits in Taiwan P 500, 000
Shares of Stock in the PH P 600,000
TOTAL GROSS GIFT P 2, 600,000
Less: Exempt Gift (P 250,000)
Net Gift P 2,350,000
Tax Due P 141,000

b. Taiwanese residing in Taiwan, with reciprocity clause.

Cash in the PH P 1,500,000

Less: Gift Exempt (P 250,000)
Net Gift P 1,250,000
Tax Due P 75,000

c. Taiwanese residing in Japan.

Cash in the PH P 1,500,000

Shares of stock in the PH P 600,000
Total Gross Gift P 2,100,000
Less: Exempt Gift (P 250,000)
Net Gift P 1,850,000
Tax Due P 111,000

2. Mr. and Mrs Agosto gifted their son Cody with a BMW on account of his forthcoming
graduation day, The luxury car has a fair market value of P6,000,000 at the time of
donation.

a. How much must be included as part of Mr. and Mrs. Agosto’s gross gift?
Husband Wife
Gifts made (for each, I/2 of P6, 000,000) P3, 000,000 P3, 000,000

b. Is Mr. and Mrs. Agosto entitled for an exemption? If so how much?

Only P 250,000 that Mr and Mrs. Agosto are entitled for an exemption. They did not
entitle for encumbrance.

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 c. How much is Mr. and Mrs. Agosto’s Net gift?

Husband Wife
Gifts made (for each, I/2 of P6, 000,000) P3, 000,000 P3, 000,000
Less: Exempt gift 250,000 250,000
Net Gift P 2,750,000 P 2,750,000

d. How much is the Donor’s tax due for Mr. and Mrs. Agosto?

Husband Wife
Gifts made (for each, I/2 of P6, 000,000) P3, 000,000 P3, 000,000
Less: Exempt gift 250,000 250,000
Net Gift P 2,750,000 P 2,750,000
Donor’s tax (P2, 750,000 x .06) P165, 000 P165, 000

3. Mr. Tan made a donation on January 2, 2019 of P250, 000. How much is the donor’s Tax?

None/Zero

4. Mr. Samonte made donations on:

January 2, 2019 of P200, 000;

March 10, 2019, a donation of P400, 000.

How much is the donor’s tax on the donation of each date? Present your computation.

Date of Donation Amount Donor’s Tax

January 2, 2019 P 200,000 TAX EXEMPT
March 10, 2019
March 10, 2019 P400,000
Add: Jan. 2, 2019 P 200,000
Total Gross Gift P 600,000 P 21,000
LESS: Exempt Gift (P 250,000)
Net Gift P350, 000
Tax due/payable on March P 21,000

5. Donations, as follows:

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 January 2, 2019, a donation of P600, 000;
March 20, 2019, a donation of P1, 000,000.

How much is the donor’s tax on each donation?

Date of Donation Amount Donor’s Tax
January 2, 2019 P 600,000
Less: Exempt Gift (P 250,000) P 21,000
Net Gift P 350,000
Tax Due P 21,000
March 20, 2019
March 20, 2019 P1,000,000
Add: Jan. 2, 2019 P 600,000
Total Gross Gift P 1,600,000 P 60, 000
LESS: Exempt Gift (P 250,000)
Net Gift P1,350, 000
Tax Due thereon P 81,000
Less: Tax due paid on January (P 21,000)
Tax due/payable on March P 60,000

6. Mr. Manoloto , a citizen and a resident of the Philippines , made donations to a son on the
dates that follow:

June 5, 2018 Cash of P900,000

November 10, 2018 Cash of 380,000

How much was the Donor’s tax on:

a. June 5, 2018?

Cash P 900,000
Less: Exempt Gift (P 250,000)
Net Gift P 650,000
Tax Due P 39,000

b. November 10, 2018?

November 10, 2018 P 380, 000

Add: June 5, 2018 P 900,000
Total Gross Gift P 1,280,000
Less: Exempt Gift (P 250,000)
Net Gift P 1,030,000
Tax Due thereon P 61,800
Less: Tax Due paid on June (P 39,000)
Tax Due payable on November P 22,800

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7. Mr. Rosanta. a citizen of the Philippines , residing in Canada, made the following donations on
April 6, 2019:

To son - Property in Canada with a fair market value of P 250,000

To daughter - Cash in the Philippines of P 300,000.

How much was the Donor’s tax?

Property in Canada P 250,000

Cash in the Philippines P 300,000
Total Gross Gift P 550,000
Less: Exempt Gift (P 250,000)
Net Gift P 300,000
Tax payable P 18,000

………………………………………………..

MODULE 1
Learning Activity Sheet # 2

Lesson / Topic : Donor’s Tax Credit

Learning Target(s): To determine the Net Taxable gift, Tax due and Tax still due after
deducting the foreign tax credit allowed using the formula by country or
by total.
Reference(s): Winlu, Ballada. Transfer and Business Taxation, Made Easy, 2019 Issue,
7th Edition, p197-227.
Concept/ Digest: Donation of Property located within and without the Philippines by a Filipino
citizen or a resident alien are subject to Philippine donor’s tax. If the property
donated is located in a foreign

Exercises / Questions:

Questions:

1. On June 01, 2019, Kim, donated P1, 500,000 to her daughter Victoria, who was getting married.
Bank deposits in Taiwan worth P500, 000, Shares of stock in the Philippines amounting to P600,
000. Delia gave no other gift during the calendar year. What is the donor’s tax implication on
Celia’s donation if :

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 a. A Filipino residing in the Philippines.

Cash P 1, 500,000
Bank Deposits in Taiwan P 500, 000
Shares of Stock in the PH P 600,000
Total Gross Gift P 2, 600,000
Less: Exempt Gift (P 250,000)
Net Gift P 2,350,000
Tax Due P 141,000

b. Taiwanese residing in Taiwan, with reciprocity clause.

Cash in the PH P 1,500,000

Less: Gift Exempt (P 250,000)
Net Gift P 1,250,000
Tax Due P 75,000

c. Taiwanese residing in Japan.

Cash in the PH P 1,500,000

Shares of stock in the PH P 600,000
Total Gross Gift P 2,100,000
Less: Exempt Gift (P 250,000)
Net Gift P 1,850,000
Tax Due P 111,000

2. Mr. and Mrs Agosto gifted their son Cody with a BMW on account of his forthcoming
graduation day, The luxury car has a fair market value of P6,000,000 at the time of donation.

a. How much must be included as part of Mr. and Mrs.Agosto’s gross gift?

Husband Wife
Gifts made (for each, 1/2 of P6, 000,000) P3, 000,000 P3, 000,000

b. Is Mr. and Mrs.Agosto entitled for an exemption? If so how much?

Only P 250,000 that Mr and Mrs. Agosto are entitled for an exemption. (They did not entitle for
encumbrance)

c. How much is Mr. and Mrs.Agosto’s Net gift?

Husband Wife
Gifts made (for each, I/2 of P6, 000,000) P3, 000,000 P3, 000,000
Less: Exempt gift 250,000 250,000
Net Gift P 2,750,000 P 2,750,000

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 d. How much is the Donor’s tax due for Mr. and Mrs.Agosto?

Husband Wife
Gifts made (for each, I/2 of P6, 000,000) P3, 000,000 P3, 000,000
Less: Exempt gift 250,000 250,000
Net Gift P 2,750,000 P 2,750,000
Donor’s tax (P2, 750,000 x .06) P165, 000 P165, 000

3. Mr. Tan made a donation on January 2, 2019 of P250, 000. How much is the donor’s Tax?

Zero (0) or none

4. Mr. Samonte made donations on:

January 2, 2019 of P200, 000;

March 10, 2019, a donation of P400, 000.

How much is the donor’s tax on the donation of each date? Present your computation.

Date of Donation Amount Donor’s Tax

January 2, 2019 P 200,000 TAX EXEMPT
March 10, 2019
March 10, 2019 P400,000
Add: Jan. 2, 2019 P 200,000
Total Gross Gift P 600,000 P 21,000
LESS: Exempt Gift (P 250,000)
Net Gift P350, 000
Tax due/payable on March P 21,000

5. Donations, as follows:

January 2, 2019, a donation of P600, 000;

March 20, 2019, a donation of P1, 000,000.

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 How much is the donor’s tax on each donation?
Date of Donation Amount Donor’s Tax
January 2, 2019 P 600,000
Less: Exempt Gift (P 250,000) P 21,000
Net Gift P 350,000
Tax Due P 21,000
March 20, 2019
March 20, 2019 P1,000,000
Add: Jan. 2, 2019 P 600,000
Total Gross Gift P 1,600,000 P 60, 000
LESS: Exempt Gift (P 250,000)
Net Gift P1,350, 000
Tax Due thereon P 81,000
Less: Tax due paid on January (P 21,000)
Tax due/payable on March P 60,000

6. Mr. Manoloto , a citizen and a resident of the Philippines , made donations to a son on the
dates that follow:

June 5, 2018 Cash of P900, 000

November 10, 2018 Cash of 380,000

How much was the Donor’s tax on:

c. June 5, 2018?

Cash P 900,000
Less: Exempt Gift (P 250,000)
Net Gift P 650,000
Tax Due P 39,000

d. November 10, 2018?

November 10, 2018 P 380, 000

Add: June 5, 2018 P 900,000
Total Gross Gift P 1,280,000
Less: Exempt Gift (P 250,000)
Net Gift P 1,030,000
Tax Due thereon P 61,800
Less: Tax Due paid on June (P 39,000)
Tax Due payable on November P 22,800

7. Mr. Rosanta. a citizen of the Philippines , residing in Canada, made the following donations on
April 6, 2019:

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 To son - Property in Canada with a fair market value of P 250,000
To daughter - Cash in the Philippines of P 300,000.

How much was the Donor’s tax?

Property in Canada P 250,000

Cash in the Philippines P 300,000
Total Gross Gift P 550,000
Less: Exempt Gift (P 250,000)
Net Gift P 300,000
Tax payable P 18,000

………………………………………………..

MODULE 2
Learning Activity Sheet # 1

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Lesson / Topic: Summative Test for the Computation of Donor’s Tax due and computation
of Donor’s Tax Credit using the formula provided by the Tax Reform
for Acceleration and Inclusion (TRAIN Law).
Learning Target(s): To determine the Net Taxable gift, Tax due and Tax still due after
deducting the foreign tax credit allowed using the formula by country or
by total.
Reference(s): Winlu, Ballada. Transfer and Business Taxation, Made Easy, 2019 Issue,
7th Edition, p197-227.
Concept/ Digest: See Modules dated March 16 and March 18, 2020.

Exercises / Questions:
Questions:

1. On June 01, 2019, Kim, donated P1, 500,000 to her daughter Victoria, who was getting married.
Bank deposits in Taiwan worth P500, 000, Shares of stock in the Philippines amounting to P600,
000. Delia gave no other gift during the calendar year. What is the donor’s tax implication on
Celia’s donation if :

a. A Filipino residing in the Philippines.

Cash P 1, 500,000
Bank Deposits in Taiwan P 500, 000
Shares of Stock in the PH P 600,000
Total Gross Gift P 2, 600,000
Less: Exempt Gift (P 250,000)
Net Gift P 2,350,000
Tax Due P 141,000

b. Taiwanese residing in Taiwan, with reciprocity clause.

Cash in the PH P 1,500,000

Less: Gift Exempt (P 250,000)
Net Gift P 1,250,000
Tax Due P 75,000

c. Taiwanese residing in Japan.

Cash in the PH P 1,500,000

Shares of stock in the PH P 600,000
Total Gross Gift P 2,100,000
Less: Exempt Gift (P 250,000)
Net Gift P 1,850,000
Tax Due P 111,000

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2. Mr. and Mrs Agosto gifted their son Cody with a BMW on account of his forthcoming
graduation day, The luxury car has a fair market value of P6,000,000 at the time of donation.

a. How much must be included as part of Mr. and Mrs.Agosto’s gross gift?

Husband Wife
Gifts made (for each, 1/2 of P6, 000,000) P3, 000,000 P3, 000,000

b. Is Mr. and Mrs.Agosto entitled for an exemption? If so how much?

Only P 250,000 that Mr and Mrs. Agosto are entitled for an exemption. (They did not entitle for
encumbrance)

c. How much is Mr. and Mrs.Agosto’s Net gift?

Husband Wife
Gifts made (for each, I/2 of P6, 000,000) P3, 000,000 P3, 000,000
Less: Exempt gift 250,000 250,000
Net Gift P 2,750,000 P 2,750,000

d. How much is the Donor’s tax due for Mr. and Mrs.Agosto?

Husband Wife
Gifts made (for each, I/2 of P6, 000,000) P3, 000,000 P3, 000,000
Less: Exempt gift 250,000 250,000
Net Gift P 2,750,000 P 2,750,000
Donor’s tax (P2, 750,000 x .06) P165, 000 P165, 000

3. Mr. Tan made a donation on January 2, 2019 of P250, 000. How much is the donor’s Tax?

Zero (0) or none

4. Mr. Samonte made donations on:

January 2, 2019 of P200, 000;

March 10, 2019, a donation of P400, 000.

How much is the donor’s tax on the donation of each date? Present your computation.

Date of Donation Amount Donor’s Tax

January 2, 2019 P 200,000 TAX EXEMPT
March 10, 2019
March 10, 2019 P400,000
Add: Jan. 2, 2019 P 200,000
Total Gross Gift P 600,000 P 21,000

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 LESS: Exempt Gift (P 250,000)
Net Gift P350, 000
Tax due/payable on March P 21,000

5. Donations, as follows:

January 2, 2019, a donation of P600, 000;

March 20, 2019, a donation of P1, 000,000.

How much is the donor’s tax on each donation?

Date of Donation Amount Donor’s Tax
January 2, 2019 P 600,000
Less: Exempt Gift (P 250,000) P 21,000
Net Gift P 350,000
Tax Due P 21,000
March 20, 2019
March 20, 2019 P1,000,000
Add: Jan. 2, 2019 P 600,000
Total Gross Gift P 1,600,000 P 60, 000
LESS: Exempt Gift (P 250,000)
Net Gift P1,350, 000
Tax Due thereon P 81,000
Less: Tax due paid on January (P 21,000)
Tax due/payable on March P 60,000

6. Mr. Manoloto , a citizen and a resident of the Philippines , made donations to a son on the
dates that follow:

June 5, 2018 Cash of P900, 000

November 10, 2018 Cash of 380,000

How much was the Donor’s tax on:

a. June 5, 2018?

Cash P 900,000

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 Less: Exempt Gift (P 250,000)
Net Gift P 650,000
Tax Due P 39,000

b. November 10, 2018?

November 10, 2018 P 380, 000

Add: June 5, 2018 P 900,000
Total Gross Gift P 1,280,000
Less: Exempt Gift (P 250,000)
Net Gift P 1,030,000
Tax Due thereon P 61,800
Less: Tax Due paid on June (P 39,000)
Tax Due payable on November P 22,800

7. Mr. Rosanta. a citizen of the Philippines , residing in Canada, made the following donations on
April 6, 2019:

To son - Property in Canada with a fair market value of P 250,000

To daughter - Cash in the Philippines of P 300,000.

How much was the Donor’s tax?

Property in Canada P 250,000

Cash in the Philippines P 300,000
Total Gross Gift P 550,000
Less: Exempt Gift (P 250,000)
Net Gift P 300,000
Tax payable P 18,000

8. On July 01, 2018, Rudy, donated P2, 500,000 to her daughter Victoria, who was getting
married. Bank deposits in USA worth P600, 000, Shares of stock in the Philippines amounting
to P600, 000. Rudy gave no other gift during the calendar year. What is the donor’s tax
implication on Rudy’s donation if :

a. A Filipino residing in the Philippines.

Cash in the PH P 2,500,000

Bank deposits USA P 600,000
Shares of stocks P 600,000
TOTAL GROSS GIFT P 3,700,000
Less: Exempt Gift P (P 250,000)
TOTAL NET GIFT P 3,450,000
TAX DUE P 207,000

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 b. Japanese residing in Taiwan, with reciprocity clause.

Cash in the PH P 2,500,000

Less: Gift Exempt (P 250,000)
Net Gift P 2,250,000
Tax Due P 135,000

c. Japanese residing in Japan.

Cash in the PH P 2,500,000

Shares of stock in the PH P 600,000
Total Gross Gift P 3,100,000
Less: Exempt Gift (P 250,000)
Net Gift P 2,850,000
Tax Due P 171,000

9. On May 10, 2019, Rosa, donated P4, 500,000 to her daughter Chloe, who was getting married.
Bank deposits in USA worth P400, 000, Shares of stock in the Philippines amounting to P500,
000. Rosa gave no other gift during the calendar year. What is the donor’s tax implication on
Rosa’s donation if :

a. A Filipino residing in the Philippines.

Cash in the PH P 4,500,000

Bank deposits USA P 400,000
Shares of stocks P 500,000
TOTAL GROSS GIFT P 5,400,000
Less: Exempt Gift P (P 250,000)
TOTAL NET GIFT P 5,150,000
TAX DUE P 309,000

b. American residing in USA, with reciprocity clause.

Cash in the PH P 4,500,000

Less: Gift Exempt (P 250,000)
Net Gift P 4,250,000
Tax Due P 255,000

c. American residing in Japan.

Cash in the PHP P 4,500,000

Shares of stock in the PH P 500,000
Total Gross Gift P 5,000,000

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 Less: Exempt Gift (P 250,000)
Net Gift P 4,750,000
Tax Due P 285,000

10. On June 01, 2019, Andy, donated P4, 500,000 to her daughter Anna, who was getting married.
Bank deposits in Taiwan worth P800, 000, Shares of stock in the Philippines amounting to P700,
000. Andy gave no other gift during the calendar year. What is the donor’s tax implication on
Andy’s donation if :

a. A Filipino residing in the Philippines.

Cash in the PH P 4,500,000

Bank deposits Taiwan P 800,000
Shares of stocks PH P 700,000
TOTAL GROSS GIFT P 6,000,000
Less: Exempt Gift P (P 250,000)
TOTAL NET GIFT P 5,750,000
TAX DUE P 345,000

b. Taiwanese residing in Taiwan, with reciprocity clause.

Cash in the PH P 4,500,000

Less: Gift Exempt (P 250,000)
Net Gift P 4,250,000
Tax Due 255,000

c. Taiwanese residing in Japan.

Cash in the PH P 4,500,000

Shares of stock in the PH P 700,000
Total Gross Gift P 5,200,000
Less: Exempt Gift (P 250,000)
Net Gift P 4,950,000
Tax Due P 297,000

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