Northern CPAR: Taxation – 

 Donor’s Taxation

NORTHERN CPA REVIEW

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4  Floor Pelizloy Centrum, Lower Session Road, Baguio City,
City, Philippines
Mobile Numbers SM!R"
SM!R" #$%$4&$'()& * +LB- #$%(%'%&%#4
-.mail !ddress n/par0yahoo1/o
n/par0yahoo1/omm
REX B. BANGGAW
BANGGAWAN,
AN, CPA, MBA

TAXATION
TRANSFER TAXATION: DONOR’S TAX 

Donation tax 
Donor’s tax is a tax on a donation or gift, and is imposed on the gratuitous transfer of 
property between two oror more persons who are living at the time of the transfer.
transfer. It shall
apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect
and whether the property is real or personal.
 Why is donation subjected to tax? tax?
1. Donor
Donor’s
’s tax serves
serves to compensate
compensate for lossloss of income
income taxes to the governme
government
nt brought
by splitting the capital resources to smaller portions.
2. To prevent
prevent the
the avoidanc
avoidance e of estat
estate
e tax.
. To compensate
compensate forfor the limitat
limitation
ion of income
income taxatio
taxation.
n.
Essential Requisites of donation:
1. !a
!apa
paci
city
ty of
of the
the dono
donorr
2. Intention to Donate""
. Donat
Donative
ive #ct $ actual or constructiv
constructive
e %i.e.& execution
execution of a public instrument
instrument'' delivery
delivery
(. #cc
#ccept
eptance
ance by the don
donee
ee
"required only in direct donation but not with indirect donation as in the case of 
transfer with insuicient consideration.
Kinds of Donation:
1. Inter )iv
)ivos
os $ donation
donation betw
between
een living
living individu
individuals
als
2. *orti
*ortiss !ausa
!ausa $ ta+es
ta+es eect
eect upon
upon the death ofof the donor
donor
Types of Donor:
 #. !iti-en or esident #lien
/roperties transferred regardless of location %i.e.& within or outside the /hilippines' is
taxable under Donor’s Taxation.
0. on
onres
reside
ident
nt #li
#lien
en
3nly properties within the /hilippines are sub4ect to Donor’s Tax.
Which Donaton can be included in Gross Gif?
 #lien
!iti-en eside on
nt resident
/roper
/rop erti
ties
es loloca
cate
ted
d in ththe
e Includ Include Include
/hilippines e
/roperties lo
located ab
abroad Includ Include Exclude
e
 Which properties are considered
considered located in in the Philippines?
5or purposes of Donor’s Taxation the following are situated in the /hilippines&
1. franc
franchises
hises which
which must
must be exercis
exercised
ed in the /hilip
/hilippines
pines
2. share, obligat
obligations,
ions, or bonds
bonds issued
issued by any corporation
corporation or sociedad
sociedad anonima
anonima organi-ed
organi-ed
in the /hilippines in accordance with its laws
. share, obliga
obligations
tions,, or bonds issued
issued by any foreign
foreign corporati
corporation
on 678 of the business
business of 
which is located in the /hilippines
(. share, obligat
obligations,
ions, or bonds
bonds which have ac9uire
ac9uiredd situs in the /hilippi
/hilippines
nes
7. any personal property
property,, whether
whether tangible
tangible or
or intangible,
intangible, located in the
the /hilippines
/hilippines
Types of Recipients:
1. e
ela
lati
tive
vess $ incl
includ
udeses
a. br
brot
othe
herr or sisist
ster
er %w
%whe
heth
ther
er half
half or wh
whol
olee bl
bloo
ood'
d',, sp
spou
ouse
se,, ancestor  or lineal
descendants
b. a rel
relati
ative
ve by con consan
sangui
guinit
nity
y in the col
collat
latera
erall lin
line
e wit
within
hin the fou
fourth
rth deg
degree
ree of 
relationship
2. :tr
:trang
anger
er $ othe
otherr than
than relati
relatives
ves
 Note to candidates:
candidates:

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Driven for real excellence!  TAX by Rex B. Banggaan, CPA, MBA TAX – 4  Batch – HQ11-2
Northern CPAR: Taxation –  Donor’s Taxation
5or purposes of donor’s tax , the degree of relationship considered is up to the 4th
degree of consanguinity ; for estate tax purposes, up to the 5th degree of 
consanguinity .

ature of Donation:
a. There is a transfer of properties %real or personal, tangible or intangible' directly or
indirectly in trust or otherwise.
b. The transfer is gratuitous %without consideration'.
c. The donation is made intervivos.

!lassi"cation of Donor’s Tax:

a. progressive $ when the tax base increases, the rate increases
b. proportional tax $ <xed percentage to apply to donations to strangers
c. excise tax $ being a on privilege to transfer properties
d. direct tax $ paid by the statutory taxpayers without shifting
e. ad valorem tax $ imposed based according to value
f. national tax $ levied and collection by the national government
g. general tax $ <scal or revenue purpose, not speci<c

#ode of Execution of Donation:

Depending on the property involved, donation can be executed by the following&
 #. eal or immovable property
Issuance of a public instrument,  Deed of Donation
 Note to candidates: Donation of real properties is not sub4ect to donor’s tax but are
sub4ect to the =8 capital gains tax. It should be noted that the =8 capital gains tax
covers sale, exchange and other disposition  of real properties.
0. /ersonal property
a. Tangible
i. /7,>>> and below in value $ oral is allowed
ii. *ore than /7,>>> in value $ donation and acceptance should be in writing
%for validity'
b. Intangible $ execution public instrument

The following transfers, if without adequate or full consideration , are not  within the
scope of Donor’s Tax but within the scope of ?state Tax&
1. evocable transfers
2. Transfers with reservation to the right to income of the property until death
3. Transfer with reservation to the right to the possession or en4oyment of the property
until death
4. Transfer in contemplation of death $ refers to transfers  motivated by the thought of 
death not from motives associated with life
Transfers associated with life  such as the following are not transfer in contemplation
of death and hence taxable under Donor’s tax&
a. to relieve the donor of the burden of management of the property
b. to save income taxes
c. to ma+e the children <nancially independent
d. to settle family disputes
e. to see the children en4oy the property while the donor still lives
5. transfer under general power of appointment

?xempt Donation under Special Laws&

1. International ice esearch Institute
2. amon *agsaysay #ward 5oundation
. ational @ealth Insurance %.#. A6A7 $ ational @ealth Insurance #ct of 1BB7'
(. ational !ommission on Indigenous /eople %.#. 6A1 $ The Indigenous /eople ight
 #ct of 1BBA'
7. Donations in accordance with the .#. B>> $ ?cological :olid Caste *anagement #ct
of 2>>>.
=. Donations to the /ollution #d4udication 0oard under .#. 6A(B $ The /hilippine !lean
 #ir #ct of 1BBB.
A. :outhern /hilippines Development #dministration
6. /hilippine #merican !ultural 5oundation
B. Integrated 0ar of the /hilippines
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Driven for real excellence!  TAX by Rex B. Banggaan, CPA, MBA TAX – 4  Batch – HQ11-2
Northern CPAR: Taxation –  Donor’s Taxation
1>.Development #cademy of the /hilippines
11.ational :ocial #ction !ouncil
12.*useum of /hilippine !ostumes
1.#9ua!ulture Department of :outh?ast #sia 5isheries Development !enter of the
/hilippines
1(.Intramuros #dministration
17./hilippine Inventor’s !ommission
Reciprocity in Donor’s Taxation
The intangible property  transferred by a nonresident alien donor shall be exempt from
Donor’s Tax if either one of the following is satis<ed&
a. The country to which such nonresident alien donor is a citi-en does not impose
donor’s tax on similar transfer of intangible properties to 5ilipino citi-ens not residing
therein.
b. The country to which such nonresident alien donor is a citi-en allows similar
exemption to the transfer of intangible personal property of 5ilipinos not residing
therein.
Taxation of $ifts fro% Relati&es
Deductions fro% $ross $ifts:
1. ifts made to nonpro<t organi-ation, foundation or trust&
 Non-prot organization  an organi-ation that&
a. is organi-ed as a nonstoc+ entity
b. pays no dividends
c. governed by trustees with no compensation
d. and devoting all income to the accomplishment of its purposes
5or example& educational, charitable, religious, cultural, social welfare, philanthropic
organi-ation, research institution and accredited nongovernment organi-ation.
/rovided that, not !ore than "#$ of said gifts are used by the above entities for
administrative purposes %i.e.& to be veri<ed by 0I'
2. Dowry exemption of /1>,>>>
 #pplicable only  to residents (citizens or alien) ; provided it is made by parents to each
of their legitimate, recogni-ed natural, or adopted children %i.e.& per child with dowry
given' before celebration of marriage  or one year thereafter 
. ifts made to or for the use of the ational overnment or any entity created by any
of its agencies which is not conducted for pro<t
(. 3ther deductions&
a. ?ncumbrances on the property donated, if assumed by the donee
b. Those speci<cally provided by the donor as a diminution of the property donated

Donor’s Tax Table

 #pply for gratuitous transfers by related donor and donee

'&er ot '&er (asic Tax Plus ) Excess

'&er 
* / 1>>,>>> ?xempt
P 2>>,>>> / > 28 P +,,-,,,
+,,-,,,
.,,-,,, 7>>,>>> 2,>>> (8 .,,-,,,
/,,-,,, 1,>>>,>>> 1(,>>> =8 /,,-,,,
+-,,,-,, ,>>>,>>> ((,>>> 68 +-,,,-,,,
,
0-,,,-,, 7,>>>,>>> 2>(,>>> 1>8 0-,,,-,,,
,
/-,,,-,, 1>,>>>,>>> (>(,>>> 128 /-,,,-,,,
,
+,-,,,-, * +-,,1-,,, +/) +,-,,,-,,,
,,

 Note to candidates:
The amount of gift taxable represents the net bene<t accruing to the donee. et gifts as
de<ned herein represents the net cumulative amounts of gift for the whole calendar year;
however, the donor’s tax thereon is paid 9uarterly based on net cumulative gift.

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Driven for real excellence!  TAX by Rex B. Banggaan, CPA, MBA TAX – 4  Batch – HQ11-2
Northern CPAR: Taxation –  Donor’s Taxation
Taxation of $ifts to 2tran3ers
Donations to strangers are sub4ect to 0,) 4inal Tax .
$ifts in&ol&in3 !onju3al or !o%%unity Property or !o*o5ned property 
?ach spouse or coowners shall <le separate returns corresponding to his or her
respective share in the con4ugal or community or coowned property. :eparate
classi<cation of the recipient depending on their relation or ainity with the donor is
re9uired.
Tax !redit for donor’s tax paid to a forei3n country 
- !an be claimed only by donors those whose gift are taxable even if made outside the
/hilippines&
a. resident citi-ens
b. nonresident citi-ens
c. resident aliens
- The allowed creditable donor’s tax paid to a foreign country shall be sub4ect to limit
similar to the limitations in foreign tax credit in income taxation and estate tax.

4ilin3 of Return and Pay%ent of Tax 

 Donor’s tax return shall be <led within > days from the date of gift. The tax due
thereon is to be paid at the time of <ling the return.
 5or gifts made to related parties, gifts made on the same day will be <led in a singe
Donor’s Tax eturn.
 5or donations made by husbands and wife out of their common property, the donation
is deemed made by each; hence, both shall prepare separate Donor’s Tax eturn and
claim separate deductions. 5or dowry exemptions, each of the spouses is entitled to
/1>,>>> each for each gifts made to children on account of marriage.
 The eturn shall be <led to the same receiving entities as enumerated in income and
estate taxation.

4ilin3 Require%ents:
 # return under oath in duplicate which shall set forth the following&
a. each gift made during the calendar year which is to be included in computing net gifts
b. the deductions claimed and allowable
c. any previous net gifts made during the same calendar year
d. the name of the donee; and
e. such further information as may be re9uired by rules and regulations made pursuant
to law
DR677 PR'(7E#2
1. Donations that do not conform to legal formalities are
a. Taxable under Donor’s tax notwithstanding absence for formalities
b. ?xempt from Donor’s tax
c. :ub4ect to ?state tax
d. :ub4ect to income tax
2. #cceptance is essential for a valid donation to be sub4ect to donor’s tax, except
transfers
a. in trust by the donor in favour of a bene<ciary
b. of business interest by the donor in favour of an stranger
c. for less than ade9uate consideration
d. by 5ilipino residents to nonresident aliens
. The donation of an immovable property shall be made
a. In writing c. ?ither # or 0
b. In a public instrument d. 3rally
(. Esing the preceding number, acceptance by the donee may be made
a. In the same deed of donation c. ?ither # or 0
b. In a separate document d. either # nor 0
7. The donation of a movable property may be made
a. 3rally b. In writing c. ?ither # or 0 d. either # nor 0
=. Esing the preceding number, the donation and acceptance should be in writing if the
 value of the property donated is
a. Fess than /7,>>> b. /7,>>> or less c. /7,>>> or more d. *ore than
/7,>>>
A. # donation which ta+es eect upon the death of the donor
a. Donation mortis causa

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Driven for real excellence!  TAX by Rex B. Banggaan, CPA, MBA TAX – 4  Batch – HQ11-2
Northern CPAR: Taxation –  Donor’s Taxation
b. /arta+es of the nature of a testamentary disposition
c. :hall be governed by the law on succession
d. #, 0 and !
6. # donation which is intended by the donor to ta+e eect during his lifetime
a. :hall be sub4ect to donor’s tax using the tax table for donation
b. :hall be in writing if the value exceeds /7,>>>
c. Donation intervivos
d. #, 0 and !
B. Chich is incorrect concerning donationG
a. eal property is transferred by donation only if made under a public instrument
b. Donation of intangible personal property should be in writing
c. /ersonal property amounting to more than /7,>>> should be in writing
d. o one can be forced to accept the generosity of another
1>.Chich is correct regarding transfer intervivos involving personal properties for less
than an ade9uate and full considerationG
a. The whole value of the property will be included in gross gift
b. The dierence in fair value and consideration is a gift sub4ect to donor’s tax
c. The whole value of the property will be included in gross estate
d. The dierence in fair value and consideration is part of gross estate

5or os. 11 through 1B& Indicate whether covered by Donor’s Tax, ?state Tax or Income
Tax&
11.# person transferred properties in trust in favor of another and the trust is irrevocably
designated. HHHHHHHHHHH
12.# person transferred properties in trust in favor of another and the trust is designated
as revocable. HHHHHHHHHHH
1.# person transferred properties in trust in favor of another and the trust is designated
as revocable which the transferor failed to revo+e by the time of his or her death.
HHHHHHHHHHH
1(.# person transferred personal properties to another during his lifetime for less than
ade9uate consideration. The transfer is to ta+e eect upon the death of the transferor
HHHHHHHHHHHH
17.# person transferred personal properties to another during his lifetime for less than
ade9uate consideration. The transfer is to ta+e eect immediately HHHHHHHHHHH
1=.# person transferred a real property classi<ed as capital asset during his lifetime for
less than ade9uate consideration. The transfer is to ta+e eect upon death HHHHHHHHHHH
1A.# person transferred a real property classi<ed as capital asset during his lifetime for
less than ade9uate consideration. The transfer is to ta+e eect immediately
HHHHHHHHHHH
16.# person transferred properties to another during his lifetime for an ade9uate
consideration. HHHHHHHHHH
1B.The following transfers are taxable under donor’s tax, exceptG
a. Transfers made by the donor to relieve himself of the burden of management of
his properties
b. Transfers made by the donor to settle family disputes
c. Transfers made by a parent to see his children en4oy his properties while he still
lives
d. Transfers under power of general appointment
2>.Chich is incorrectG
a. Donations of nonresident aliens involving properties located abroad to residents of 
the /hilippines is exempt from donor’s tax
b. enunciation of inheritance by an heir to another is not sub4ect to donor’s tax
c. Donation by a nonresident citi-en to a nonresident alien is exempt from donor’s
tax
d. ifts are rec+oned on an annual basis; the tax is determined for the whole gift
throughout the year; hence, a computation is made every time a donation is made
21.Chich of the following donation may be exemptG
a. Donation of a resident alien of its properties located abroad to a nonresident alien
b. Donation of a nonresident alien of real properties located in the /hilippines to a
resident alien
c. Donation of nonresident alien of intangible properties located in the /hilippines to
a nonresident alien
d. Donation of a intangible properties located in the /hilippines by resident aliens

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Driven for real excellence!  TAX by Rex B. Banggaan, CPA, MBA TAX – 4  Batch – HQ11-2
Northern CPAR: Taxation –  Donor’s Taxation
22.Chich of the following is not included in gross giftG
a. Transfers to nonpro<t nonstoc+ charitable institution
b. The portion of the fair value of a property transferred ade9uately paid for in
transfer for less than an ade9uate consideration
c. The portion of the donation representing dowry exemption
d. Donation to the government for public use
2.Donation to the following entities is exempt from Donor’s taxation, except
a. #ccredited national professional organi-ation of certi<ed public accountant
%/I!/#'
b. Integrated 0ar of the /hilippines
c. International ice esearch Institute
d. amon *agsaysay #ward 5oundation
2(.I. Dowries or gifts made on account of family celebration, on or before its celebration,
or within one year thereafter, by parents to each of their legitimate, recogni-ed
natural or adopted children, to the extent of the <rst /1>,>>> shall be exempt from
the donor’s tax
II. Donations in favour of an educational and or charitable, religious, cultural or social
welfare corporation, institution, accredited non $ government organi-ation, trust or
philanthropic organi-ation or research institution or organi-ation provided that n o
amount of said gifts shall be used by the donee for administration purposes shall be
exempt from donor’s tax
a. True, true b. True, 5alse c. 5alse, True d. 5alse,
5alse
27.#. If the value of the movable property donated is /7,>>> or more the donation and
the acceptance shall be made in writing, otherwise the donation shall be void
0. egardless of the value of the immovable property donated, the donation and the
acceptance shall be made in writing, otherwise the donation shall be void.
a. True, True b. True, 5alse c. 5alse, True d. 5alse,
5alse
2=.I. The gift is perfected from the moment the donor eects the delivery either actually
or constructively of the property donated
II. Donor’s tax is a property tax imposed on the property transferred by the way of gift
intervivos
a. True, True b. True, 5alse c. 5alse, True d. 5alse,
5alse
2A.I. Chere property is transferred during lifetime for less than ade9uate and full
consideration in money or money’s worth, then the amount by which the value of the
property exceeded the value of the consideration shall for the purpose of the donor’s
tax, be deemed a gift
II. ifts of con4ugal property made by both spouses shall be considered as having been
made one $ half by the husband and the other half by the wife and is taxable  to
each donor spouse
a. True, True b. True, 5alse c. 5alse, True d. 5alse,
5alse
26.I. 5or purpose of the donor’s tax, second degree cousins are strangers to each other.
II. ?ncumbrance on the property donated, if assumed by the donor is deductible for
donor’s tax purposes.
a. True, True b. True, 5alse c. 5alse, True d. 5alse,
5alse
2B.I. #s a rule, donation between husband and wife during the marriage is void.
II. Donation can be made to conceived or unborn children.
a. True, True b. True, 5alse c. 5alse, True d. 5alse,
5alse
>.1st :tatement& Chen the donee is a stranger, the tax payable by the donor shall be
>8 of the net gifts.
2nd :tatement& Chen the donee is a relative the tax payable by the donor shall be
based on the scheduler rates of donor’s tax provided in :ection BB of the Tax !ode.
a. 0oth statements are correct c. 3nly the <rst statement is correct
b. 0oth statements are incorrect d. 3nly the second statement is
correct
1.5or purposes of donor’s tax, a Jstranger& is a person who is not a&

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Driven for real excellence!  TAX by Rex B. Banggaan, CPA, MBA TAX – 4  Batch – HQ11-2
Northern CPAR: Taxation –  Donor’s Taxation
I $ brother, sister %whether by whole of half blood', spouse, ancestor, and lineal
descendant; or
II $ relative by consanguinity in the collateral line within the <fth degree of
relationship
a. 0oth statements are correct c. 3nly the <rst statement is correct
b. 0oth statements are incorrect d. 3nly the second statement is
correct
2.1st :tatement $ # legally adopted child is entitled to all the rights and obligations
provided by law to legitimate children, and therefore, donation to him shall not be
considered as donation made to stranger
2nd :tatement $ Donation made between business organi-ation and those made
between an individual and a business organi-ation shall be considered as donation
made to a stranger
a. 0oth statements are correct c. 3nly the <rst statement is correct
b. 0oth statements are incorrect d. 3nly the second statement is
correct
.1st :tatement $ #ny contributions in cash or in +ind to any candidate, political party or
coalition of parties for campaign purposes, shall be governed by the ?lection !ode, as
amended
2nd :tatement $ #ny provision of law to the contrary notwithstanding, any contribution
in cash or in +ind to any candidate or political party or coalition of parties for
campaign purposes duly reported to the !3*?F?! shall not be sub4ect to the
payment of any gift tax
a. 0oth statements are correct c. 3nly the <rst statement is correct
b. 0oth statements are incorrect d. 3nly the second statement is
correct
(.The donor’s tax is a
a. /roperty tax on the property transferred
b. /ersonal tax on the person who transferred the property
c. Tax imposed on the transfer of property by way of gift inter vivos
d. Tax imposed on the transfer of property by way of gift mortis causa
7.1st :tatement $ The donor’s tax shall not apply unless and until there is a completed
gift.
2nd :tatement $ The law in force at the time of the perfectionKcompletion of the
donation shall govern the imposition of the donor’s tax
a. 0oth statements are correct
b. 0oth statements are incorrect
c. 3nly the <rst statement is correct
d. 3nly the second statement is correct
=.Chen is the donation perfectedG
a. The moment the donor +nows of the acceptance by the donee
b. The moment the donated property is delivered, either actually or constructively, to
the donee
c. Epon payment of the donor’s tax
d. Epon execution of the deed of donation
A.Chen is the donation completedG
a. The moment the donor +nows of the acceptance by the donee
b. The moment the donated property is delivered, either actually or constructively, to
the donee
c. Epon payment of the donor’s tax
d. Epon execution of the deed of donation
6.# gift that is incomplete because of reserved powers, becomes complete when either&
I $ the donor renounces the power; or
II $ the right to exercise the reserved power ceases because of the h appening of some
event or contingency or the ful<llment of some condition, other than because of the
donor’s death
a. True in both I and II c. True in I only
b. ot true in both I and II d. True in II only
B.Chich of the following renunciations shall be sub4ect to donor’s taxG
I $ enunciation by the surviving spouse of hisKher share in the con4ugal partnership
or absolute community after the dissolution of the marriage in favor of the heirs of the
deceased spouse or any other personKs

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Driven for real excellence!  TAX by Rex B. Banggaan, CPA, MBA TAX – 4  Batch – HQ11-2
Northern CPAR: Taxation –  Donor’s Taxation
II $ eneral renunciation by an heir, including the surviving spouse, of hisKher share in
the hereditary estate left by the decedent;
III $ enunciation by an heir, including the surviving spouse of hisKher share in the
hereditary estate left by the decedent categorically in favor of identi<ed heirKs to the
exclusion or disadvantage of the other co $ heirs;
a. I, II and III c. I and III only
b. I and II only d. I only
(>.1st :tatement $ Chere property, other than a real property that has been sub4ected to
<nal capital gains tax, is transferred for less than an ade9uate and full consideration
in money or money’s worth, then the amount by which the fair mar+et value of the
property at the time of the execution of the !ontract to :ell or execution of the Deed
of :ale which is not preceded by a !ontract to :ell exceeded the value of the agreed
or actual consideration or selling price shall be deemed a gift, and shall be included in
computing the amount of gifts made during the calendar year

2nd $ The law in force at the time of the completion of the donation shall govern the
imposition of donor’s tax
a. 0oth statements are correct c. 3nly the <rst statement is correct
b. 0oth statements are incorrect d. 3nly the second statement is correct
(1.1st :tatement $ @usband and wife are considered separate and distinct taxpayers for
purposes of the donor’s tax
2nd :tatement $ If what was donated is a con4ugal or community property and only the
husband signed the deed of donation, there is only one donor for donor’s tax
purposes, without pre4udice to the right of the wife to 9uestion the validity of the
donation without her consent pursuant to the pertinent provisions of the !ivil !ode of
the /hilippines and the 5amily !ode of the /hilippines
a. 0oth statements are correct c. 3nly the <rst statement is correct
b. 0oth statements are incorrect d. 3nly the second statement is correct
(2.1st :tatement $ #ny person ma+ing a donation %whether direct or indirect', unless the
donation is speci<cally exempted under the Tax !ode or other special laws, is
re9uired, for every donation, to accomplish under oath a donor’s tax return
2nd :tatement $ The computation of the donor’s tax is on a cumulative basis over a
period of one calendar year.
a. 0oth statements are correct c. 3nly the <rst statement is correct
b. 0oth statements are incorrect d. 3nly the second statement is correct
(.Chich of the following information shall be set forth in the donor’s tax returnG
I $ ?ach gift made during the calendar year which is to be included in computing net
gifts;
II $ The deductions claimed and allowable
III $ #ny previous net gifts made during the same calendar year;
I) $ The name of the donee;
 ) $ elation of the donor to the donee
 )I $ :uch further information as the !ommissioner re9uire
a. #ll of the above c. I, II, III, and I) only
b. one of the above d. I, II and III only
((.The donor’s tax return shall be <led within
a. six %=' months after the date the gift is made
b. two %2' months after the date the gift is made or completed
c. thirty %>' days after the date the gift is made
d. thirty %>' days after the date the gift is made or completed
(7.Enless the !ommissioner otherwise permits, the donor’s tax return shall be <led and
the tax paid to the following where the donor was domiciled at the time of the transfer
I $ #uthori-ed #gent 0an+ 
II $ evenue District 3icer
III $ evenue !ollection 3icer
I) $ Duly authori-ed Treasurer of the city or municipality
a. I, II, III and I) c. I and II only
b. I, II, III only d. I only
(=.Chen the donor has no legal residence in the /hilippines, the donor’s tax return shall
be <le with
a. #uthori-ed #gent 0an+ 
b. evenue District 3icer where the donor is domiciled

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Driven for real excellence!  TAX by Rex B. Banggaan, CPA, MBA TAX – 4  Batch – HQ11-2
Northern CPAR: Taxation –  Donor’s Taxation
c. evenue !ollection 3icer where the donee is domiciled
d. 3ice of the !ommissioner
(A.In order to be exempt from donor’s tax and to claim full deduction of the donation
given to 9uali<ed donee $ institutions duly accredited by the /hilippine !ouncil for
3 !erti<cation, Inc. %/!!'&
I $ The donor engaged in business shall give notice of donation on every donation
worth at least /7>,>>> to the D3 which has 4urisdiction over his place of business;
II $ The notice shall be given within thirty %>' days after the receipt of the 9uali<ed
donee $ institution’s duly issued !erti<cate of Donation, which shall be attached to the
said otice of Donation, stating that not more than thirty percent %>8' of the said
donationsK gifts for the taxable year shall be used by such donee $ institution for
administration purposes
a. Les to I and II c. Les to I only
b. o to I and II d. Les to II only

(6 $ 7> are based on the following& The following donations during the calendar year
2>>= are made to relatives&
 Manuary >, 2>>= /2,>>>,>>>
*arch >, 2>>= 1,>>>,>>>
 #ugust 17, 2>>= 7>>,>>>
(6.@ow much is the tax due on the gift made on Manuary>, 2>>=G
a. /2>(,>>> b. /12(,>>> c. /6>,>>> d. /7>,>>>
(B.@ow much is the tax due on the gift made on *arch >, 2>>=G
a. /2>(,>>> b. /12(,>>> c. /6>,>>> d. /7>,>>>
7>.@ow much is the tax due on the gift made on #ugust 17, 2>>=
a. /2>(,>>> b. /12(,>>> c. /6>,>>> d. /7>,>>>
71.3n Manuary 7, 2>>7, Daisy gave a piece of land to her brother $ in $ law who is getting
married on 5ebruary 1(, 2>>7. The assessed value and -onal value of the land were
/A7>,>>> and /1,>>>,>>> respectively. The land had an unpaid mortgage of /2>>,>>>,
which was not assumed by the donee and an unpaid realty tax of /1>,>>> which was
assumed by the donee. The brother $ in $ law agreed to pay the donor’s tax on the
donation which was roughly /2BA,>>>. @ow much was the donor’s tax dueG
a. /2BA,>>> b. /2A,>>> c. /(,(>> d. /1,(>>

72 to 7( based on the following& *r. Mose :an Mose made the following cash donations to
his legitimate son, 16 years old, who got married on Manuary 7, 2>>=&
Date of donation 8%ount
December 2, 2>>7 /7,>>>
 Manuary 7, 2>>= ,>>>
 Manuary 7, 2>>A 1>,>>>
72.@ow much was the exempt dowry on the gift made on December 2, 2>>7G
a. /1>,>>> b. /6,>>> c. /7,>>> d. one
7.@ow much was the exempt dowry on the gift made on Manuary 7, 2>>=G
a. /1>,>>> b. /6,>>> c. /7,>>> d. /,>>>
7(.@ow much was the exempt dowry on the gift made on Manuary 7, 2>>AG
a. /1>,>>> b. /6,>>> c. /7,>>> d. /2,>>>
77.*r. 3scar #-ucar donated the following cash donations to his legally adopted
daughter, > years old, who got married on Mune 1>, 2>>=&
Date of Donation 8%ount
 Mune 1>, 2>>= / =,>>>
 #ugust 11, 2>>= (,>>>
3ctober 1>, 2>>= 7,>>>
@ow much was the exempt dowry on the gift made on 3ctober 1>, 2>>=G
7=.*r. /aolo :ao /aolo donated /7>,>>> cash to his favorite grandson who is getting
married on Mune 1=, 2>>A. 5or donor’s tax purposes the exempt dowry shall be&
a. /7>,>>> b. /1>,>>> c. /7,>>> d. one
7A.*r. /antaleon de Feon donated a piece of land to his best friend , erman Fa
ermania. The land had an assessed value of /6>>,>>> and -onal value of /1,>>>,>>>
at the time of donation. It is also encumbered with an unpaid mortgage of />>,>>>
which shall be assumed by the donee. In addition, the donee agreed to pay the

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Driven for real excellence!  TAX by Rex B. Banggaan, CPA, MBA TAX – 4  Batch – HQ11-2
Northern CPAR: Taxation –  Donor’s Taxation
applicable donor’s tax of /21>,>>>. 5or donor’s tax purposes, how much shall be the
total deductionsG
a. /71>,>>> b. />>,>>> c. /21>,>>> d. one
76.*r. guyen andaipen, non $ resident alien, donated a brand new car valued at
/1,2>>,>>> to his legitimate son who is getting married in the /hilippines. The son
agreed to pay unpaid tax of /12>,>>> on the car. 5or /hilippine donor’s tax of
/21>,>>>. 5or donor’s tax purposes, how much shall be the total deductionsG
a. /1>,>>> b. 12>,>>> c. 1>,>>> d. one
7B.*r. eorge Morge donated /7>>,>>> to the !ity of *anila and /1>>,>>> to his best
friend who graduated summa cum laude. 5or donor’s tax purposes how much shall be
the&
$ross Deducti
3ifts ons
a /=>>,>>
. > /7>>,>>>
b /7>>,>>
. > /7>>,>>>
c /=>>,>>
. > /1>>,>>>
d /7>>,>>
. > /1>>,>>>
=>.*s. Mosie /ruitt ma+es the following gifts in the year 2>>A&
  Mune =, 2>>A $ /7>,>>> to Maimee, ac+nowledge natural daughter on account of her
marriage celebrated on Mune 6, 2>>=
  #ugust 11, 2>>A $ # piece of 4ewelry purchased by *s. /ruitt for /1>>,>>> %but
with a fair mar+et value of /17>,>>> at the time of donation' given to her husband
 3ctober 12, 2>>A $ /7>,>>> to *arit-, her legitimate daughter, on account of her
marriage on December 27, 2>>=
 December 27, 2>>A $ /2>,>>> cash donation to a non pro<t philanthropic
organi-ation
The total taxable net gifts of *s. /ruitt as of December 27, 2>>A are&
a. /2>>,>>> b. /1(>,>>> c. /B>,>>> d. /6>,>>>
=1.In 2>>A, Mose made the following gifts&
1. 3n Mune 1, 2>>A, /17>,>>> to #nton, his son, on account of his marriage celebrated
*ay 1, 2>>=
2. 3n Muly 1>, 2>>A, a parcel of land worth /16>,>>> to his father, sub4ect to the
condition, that his father would assume the mortgage indebtedness of Mose in the
amount of /(>,>>>
. 3n :eptember >, 2>>A, /17>,>>> dowry to his daughter Dana, on account of her
scheduled marriage on 3ctober 27, 2>>A, and another wedding gift worth /2>,>>>
on ovember 2, 2>>A
@ow much is the total net giftsG
a. /7>>,>>> b. /(=>,>>> c. /(7>,>>> d. /(>,>>>

=2.3n Manuary 7, 2>>(, ?mma !rema, resident donor, made the following donations&
 To !rispina, recogni-ed natural child, on account of forthcoming marriage, land in
the /hilippines valued at /1>,>>>
 To 5rancisco, legitimate son, car in :an Diego, !alifornia, E:# valued at /7>>,>>>
%donor’s tax paid in E:#, /2>,>>>'
5or /hilippine donor’s tax purposes, the donor’s tax due shall be&
a. /2,>>> b. /2>,>>> c. /12,>>> d. one
=.*r. Mames Mayme, non $ resident citi-en donor, made the following donations on Muly
17, 2>>A&
 To !harles, a legally adopted child, on account of marriage on Muly 1, 2>>A,
property in Indonesia %donor’s tax paid in Indonesia, /A>,>>>', fair mar+et value,
/71>,>>>
 To #d4anto, best friend in the /hilippines, a property with an unpaid mortgage of
/>,>>> assumed by the donee, fair mar+et value, /2>,>>>

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Driven for real excellence!  TAX by Rex B. Banggaan, CPA, MBA TAX – 4  Batch – HQ11-2
Northern CPAR: Taxation –  Donor’s Taxation
5or /hilippine donor’s tax purposes the allowable tax credit is
a. /A(,>>> b. /A>,>>> c. /72,67A d. one
=(.@ made a donation of property with a 5*) of /1,>>>,>>> to his legitimate daughter I
and to M on December 27, 2>>= on account of I’s marriage to M to be celebrated on
5ebruary 1(, 2>>A.
Required: Determine the donor’s tax due.
=7.*r. and *rs N made the following donations of con4ugal funds and properties in 2>>=
%unless stated otherwise' as follows&
a. 5ebruary 1(& To F, a legitimate son, a pie of land with 5*) of /(>>,>>> on account
of F’s graduation from college
b. *ay 1(& To *, a legitimate daughter on account of *’s marriage to be celebrated
on December 27, 2>>= house and lot with 0*) of /1,>>>,>>>
c. Mune 1(& To , brother of *rs. N, /2>>,>>>
d. :eptember 1(& To 3, the eicient and beautiful secretary of *r. N for ta+ing care of 
*r. N while *rs. N is vacationing in E:#, 4ewelry worth />>,>>>
e. 3ctober 1(& To /, the honest and good loo+ing driver of *rs. N who accompanied
*rs. N on her trip to and from E:#, a diamond ring worth /7>>,>>>
f. December 1(& To O, the daughter of 3 on account of O’s birthday, pieces of 4ewelry
inherited by *r. N during marriage, with a 5*) of /(>>,>>>
g. December 27& To , a legitimate son, a residential house and lot with 5*) of
/1,2>>,>>> but sub4ect to the condition that  would assume the mortgage
indebtedness in the amount of /(>>,>>>.

Required: Determine the donor’s tax due on each donation

==.:, made the following donations in 2>>A&
a. 5ebruary 1(& To T, a legitimate son on account of T’s graduation, /17>,>>>
b.  #pril 1(& To E, an ac+nowledge natural child on account of E’s forthcoming
marriage on Manuary 1(, 2>>6, /A,>>>
c. *ay 1(& To ), a legitimate daughter on account of )’s marriage celebrated on Mune
1(, 2>>=, /6,>>>
d. Muly 1(& To T, on #ccount of T’s marriage on Man 1(, 2>>A, /1>>,>>>
e. 3ctober 1(& To E, additional gift on account of E’s marriage on Man 1(, 2>>6,
/B,>>>
f. December 1(& To ), additional gift on account of )’s marriage on Mune 1(, 2>>=,
/B2,>>>
Required: Determine the donor’s tax due on each donation
=A.C, a resident citi-en, made the following donations in 2>>A
a. 5eb 1(& To P, a legitimate son, on account of P’s marriage celebrated on December
1(, 2>>=, /16>,>>>
b. Mune 1(& To L, a legitimate daughter, on account of L’s marriage on Mune 1(, 2>>A,
/2>>,>>>
c. 3ctober 1(& To Q, a legitimate daughter, on account of Q’s marriage on Muly 1(,
2>>7 a residential land in E:# with a 5*) of /(>>,>>>. %*r. C paid /27,>>> to
the E: government as donor’s tax'
Required: Determine the donor’s tax due after the tax credit

=6.*r. #, a 5ilipino citi-en made the following gifts to his children for calendar year
2>>7&
/hil E:# !anada #ustralia
et ift /7>,>>> />>,>>> /27>,>>> /1>>,>>>
Donor’s tax paid 17,>>> 1>,>>> 7,>>>
Required: !ompute the donor’s tax still due after tax credit

 ?nd of @andouts 

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Driven for real excellence!  TAX by Rex B. Banggaan, CPA, MBA TAX – 4  Batch – HQ11-2