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    To Supplement The Estate Taxes by Preventing Their Avoidance Through The Taxation of Gifts Inter Vivos

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    Jayson RH
    Donor's tax is imposed on gratuitous transfers of property between living persons. It aims to supplement estate taxes and prevent tax avoidance. There are two types of donations: inter vivos donations subject to donor's tax, and mortis causa donations subject to estate tax. Donor's tax has lower rates than estate tax and a 100k exemption. Donations are taxed based on the fair market value of gifts and a tax return must be filed within 30 days. Exemptions include gifts to spouses or descendants, and donations to educational or charitable institutions if less than 30% is used for administration.

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    To Supplement The Estate Taxes by Preventing Their Avoidance Through The Taxation of Gifts Inter Vivos

    Uploaded by

    Jayson RH
    28 views1 page
    Donor's tax is imposed on gratuitous transfers of property between living persons. It aims to supplement estate taxes and prevent tax avoidance. There are two types of donations: inter vivos donations subject to donor's tax, and mortis causa donations subject to estate tax. Donor's tax has lower rates than estate tax and a 100k exemption. Donations are taxed based on the fair market value of gifts and a tax return must be filed within 30 days. Exemptions include gifts to spouses or descendants, and donations to educational or charitable institutions if less than 30% is used for administration.

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    Donor's Tax

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    Donor's tax is imposed on gratuitous transfers of property between living persons. It aims to supplement estate taxes and prevent tax avoidance. There are two types of donations: inter vivos donations subject to donor's tax, and mortis causa donations subject to estate tax. Donor's tax has lower rates than estate tax and a 100k exemption. Donations are taxed based on the fair market value of gifts and a tax return must be filed within 30 days. Exemptions include gifts to spouses or descendants, and donations to educational or charitable institutions if less than 30% is used for administration.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    28 views1 page

    To Supplement The Estate Taxes by Preventing Their Avoidance Through The Taxation of Gifts Inter Vivos

    Uploaded by

    Jayson RH
    Donor's tax is imposed on gratuitous transfers of property between living persons. It aims to supplement estate taxes and prevent tax avoidance. There are two types of donations: inter vivos donations subject to donor's tax, and mortis causa donations subject to estate tax. Donor's tax has lower rates than estate tax and a 100k exemption. Donations are taxed based on the fair market value of gifts and a tax return must be filed within 30 days. Exemptions include gifts to spouses or descendants, and donations to educational or charitable institutions if less than 30% is used for administration.

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    Donors Tax 3.

    Gifts in favor of an educational and/or charitable or religious, cultural, or social welfare


    corporation, institution subject to the condition that not more than 30% of said gifts shall be
    Donors tax tax imposed on the transfer gratuitously of property between two or more living persons at the time of used by the done for administration purposes.
    transfer. Gifts made by NRA (only 1& 2)
    Specific exemption of P100K. imposed DT on net gifts exceeding P100K. exmpt P100K or less.
    Kinds of donation
    Other deductions
    Inter vivos one made between living persons which is perfected from the moment the donor knows
    of the acceptance. Subject to donors tax. Encumbrance on the property donated if assumed by the donee.
    Mortis causa one that takes effect upon the death of the donor partakes the nature of testamentary Those specifically provided by the done as a diminution from the property donated.
    disposition. Subject to estate tax and governed by laws on succession.
    Political contribution exempted provided that there must be a report to be submitted to the COMELEC.
    Purposes
    - Unutilized/ excess campaign funds are subject to income tax.
    To supplement the estate taxes by preventing their avoidance through the taxation of gifts inter vivos,
    without which, the property would be subject to said taxes. Donation to stranger 30 % of the net gifts.
    To prevent avoidance of income taxes through the device of splitting income among numerous donees
    thereby escaping the effect of progressive rate taxation. Stranger/s not:

    Donors Tax vs Estate Tax - Brother or sister, spouse, ancestor and lineal descendant.
    - Relative by consanguinity in the collateral line within 4th civil degree.
    Donors Estate
    Imposed on donations inter vivos Transfer in the nature of testamentary disposition Valuation
    Lower rates Higher rates
    100K exemption 200K Real property current fair market value as determined by a provincial or city assessor or CIR, whichever is higher.

    Personal property FMV at the time of the gift is considered the amount of the gift.
    Nature
    Filing: within 30 days after the date the gift is made or completed.
    Privilege tax imposed on donor to give, done to receive.
    Imposition does not rest upon general ownership. The tax due thereon shall be paid at the time of filing.

    Requisites of taxable gift (donors tax)

    Capacity of the donor;


    Donative intent of the donor to make gift;
    Delivery of the subject matter of the gift;
    Acceptance of the gift by donee.

    Classification

    Resident/ citizen (RC, NRC, RA) WITHIN / WITHOUT


    1. Real property
    2. Tangible personal property
    3. Intangible personal property
    Non-resident alien WITHIN
    1. Real property
    2. Tangible personal property
    3. Intangible personal property ( Ee: Reciprocity)

    Governing law: Law at the time the donation was made.

    Exemptions:

    Gifts made by resident:


    1. Dowries or gifts made on account of marriage and before its celebration or within one (1)
    year thereafter by parents to each of their legitimate, recognized natural or adopted children
    to the extent of first P10K.
    2. Gifts made to or for the use of the National Government or of its entities.

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