GROSS GIFT Recipr

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 Transfers subject to donor’s tax: NRA      
1) Direct gift; w/
2) Gift trough creation of a trust; Recipr
3) Condonation of debt; ocity
4) Repudiation of inheritance if:
1. Specifically, and categorically
done in favor of identified  Gift from Common Property- the
heirs; and gift is taxable one-half to each donor
2. To the exclusion or spouse.
disadvantage of other co-  Donation between husband and wife
heirs. during the marriage
5) Renunciation by the surviving GENERAL RULE: The gift is not taxable, as it
spouse of his/her share in the is declared void by law.
conjugal partnership or absolute
community after the dissolution of EXCEPTION: Moderate gifts between the
the marriage in favor of their heirs spouses are valid.
of the deceased spouse or any other Husband and wife are considered separate
person/s; and distinct taxpayers for purposes of the
6) Transfer for insufficient donor’s tax. However, if what was donated
consideration is a conjugal or community property and
EXCEPTION: Real property only the husband signed the deed of
classified as capital asset. donation, there is only one donor for
donor’s tax purposes, without prejudice to
FMV at the time of sale the right f the wifeto question the validity of
PXXX the donation without her consent pursuant
Less: Selling Price to the pertinent provisions of the Civil Cod
(XXX) of the Philippines and the Family Code of
Taxable Gift the Philippines.
PXXX
EXEMPTIONS OR DEDUCTIONS FROM
GROSS GIFT
COMPONENTS OF GROSS GIFT
1) Dowry Exemption
R T IP
P P P Repeated under TRAIN Law
P
Requisites:
Donor w w w w w w
/i / /i / /i / 1. Gift made on account of marriage;
n o n o n o 2. Given before its celebration or
RC/N       within 1 year thereafter;
RC/R 3. Given to legitimate, recognized
A natural or adopted children;
NRA      
w/o
 4. Amount of exemption is P10,000 per 1. International Rice Research
donor per child. Institute
2. Ramon Magsaysay Foundation
3. Integrated Bar of the Philippines
2) Gifts to the Government-gifts 4. Development Academy of the
made to or for the use of the Philippines
National Government or any entity 5. National Museum
created by any of its agencies which 6. National Library
is not conducted for profit, or to any 7. Archives of the National
of its political subdivision of the said Historical Institute
government. 8. Museum of the Philippine
3) Gifts in favor of an educational Costumes
and/or charitable, religious, 9. Intramuros Administration
cultural or social welfare, 10. Political contributions
institution accredited non-
NOTE:
government organization, trust or
philanthropic organization or For purposes of the donor’s tax, “NET GIFT”
research institution or shall mean the net economic benefit from
organization the transfer that accrues to the done.
Requisites: Exemption or RC/NRC/RA NRA
deduction
1) Gifts in favor of the following Dowry ** 
entities: Gifts to the  
i. Educational Government
ii. Charitable Gifts to  
iii. Religious educational,
iv. Cultural charitable,
v. Social Welfare religious etc.
vi. Accredited non- Encumbrances  
government on gift assumed
organization; by done
vii. Trust or Philanthropic Diminution of  
organization; gift provided by
viii. Research institution or donor
**No longer allowed on donations made
organization;
beginning Jan. 1, 2018.
2) Not more than 30% of the said
gift shall be used for
administration purposes.

4) Encumbrances on the property

donated assumed by the donee
5) Diminution of gift provided by the
donor
6) Exemption under Special Laws