Donation of Movable Property (Personal)
Donation of Movable Property (Personal)
Donation of Movable Property (Personal)
3. Delivery
- Completed gift CHARACTERISTICS OF DONOR’S TAX
1. Excise tax. Gift inter-vivos
2. Contract. There must be a completed gift Requisite 1. Death of 1. Donative
3. Perfected from the moment the donor s or decedent intent of
knows of the acceptance of the done Elements 2. Heir is donor
4. Direct tax. Tax is imposed on the donor alive at 2. Capacity
5. Renunciation by surviving spouse after the the time or
dissolution of marriage – subject to donor’s of dece- authority
dent’s of donor
tax
death. 3. Delivery
6. General renunciation by an heir, is not
Not of
subject to ta, unless in favor of identified disqualifie donated
heirs to the exclusion/disadvantage of other d. property
co-heirs 3. Estate/ 4. Acceptan
Inheritanc ce
CLASSIFICATION OF DONATION
e 5. Proper
1. Excise tax form
2. Ad valorem tax Accrual Upon death of At the time the
3. Direct tax Period decedent donation is
4. National tax perfected
5. Transfer tax Governin Statute in force at Statute in force
g Law the time of death at the time of
6. Personal tax
of decedent perfection of
As to motive or purpose: donation
Tax Rate 6% net estate ≥ 250,000 = 6%
1. Simple – Pure liberty Filling & 1. Withing 1 1. Within 30
2. Renumeratory – Not subject to donor’s tax, Payment yr from days from
not gratuitous death donation
3. Modal – Consideration > value of thing 2. ≤ 30 days 2. No
donated =extensio extension
n
As to time of effect (Perfection): 3. Pay as 3. Pay as
you file you file
1. Inter-vivos – Lifetime 4. Extension 4. No
2. Mortis-causa – after death to pay extension
VALUATION OF GROSS GIFTS Extrajudicial for
= 2yrs payment
- Based on the FMV of the property donated Judicial =
at the time the donation is perfected 5yrs
NOTE: REAL PROPERTY Scope RC, NRC, RA – RC, NRC, RA –
FMV by CIR estate within and gifts within and
FMV by Provincial and City Assessors without without
RA – estate RA – gifts within
= HIGHER
within
Stocks, bonds and other securities:
INTAGIBLE PERSONAL PROPERTY in the DONOR’S TAX FOR SALE NOT THRU THE
Philipinnes LOCAL STOCK EXCHANFGE
1. Franchise exercised within the Philippines Fair value – Selling Price = goft subject to donor’s
2. SOB by any corp constituted in the Phil tax
3. SOB by any foreign corp, 85% is located in
the Philippines - Parties must present proof of business
4. SOB by a foreign corp if SOB have acquired purpose.
a business situs in the Philippines Hereditary estate subject to donor’s tax when
5. Shares or right established in the renounced provided:
Philippines
1. It was expressly made in favor of the heir
COMPUTATION OF TAXABLE NET GIFT 2. To the exclusion or disadvantage of another
Gross Gifts heir