Donations, donations and other contributions received from homeowners` associations (associations) are subject to the payment of donor tax under sections 98 and 99 of the NIRC, as amended by section 28 of RA 10963 (TRAIN ACT). Foundations or donations received from these associations are not exempt from donor tax because donations to associations are not eligible for the exemption under section 101(A)(2) of the TRAIN Act. (Section II, WRC No. 53-2013) Again and again, it was before. That`s why a lot of people avoided it by saying, “I`m going to transfer it to my child so there`s no problem,” but now under the train law, it`s also six percent. Everything is therefore at the same level: donation, sale and succession are six percent. Same rate. Thank you very much. Thank you, legislators. All right. And another reason I would say that this kind of tax planning is probably not as good as an idea as it used to be is that we`re going to give up deductions.
yun pong house and los ng parents ko maybe worth 300 thousand. I was told, na mas mahal ang tax, si comme “mana” ibibigay sa anak. so nagsuggest ang isang avocat na bilhin ng anak ang propriété. The local tax office said about 35k ang tax if the child buys it. tanong ko po mas mura pa rin po ba yung tax si “don” à mas madaling ayusin? So, in our case, it`s the mobile phone. So, that`s the specific thing. We agree that this is the thing that will be the subject of the sale. And finally, it is the cause or the consideration. As I said, it`s 100 pesos. It`s a price, safe in money.
Very clear. All right. Well, what is an Atty donation? Erwin? Thank you very much. The gifts you received would no longer be a gift, but a part of the inheritance tax. The tax return must be filed with any authorized banking agent (AAB) of the tax district office responsible for the donor`s place of residence at the time of donation or, if there is no legal residence in the Philippines, with the Office of the Commissioner of Internal Revenue (Tax District Office No. 39, South Quezon City). In the case of gifts from a non-resident alien, the return may be submitted to RDO No. 39 or to the Philippine embassy or consulate in the country where he resides at the time of the donation. Donor tax for each calendar year is now a flat rate of 6%, which is levied on “net donations” that the recipient (recipient of the gift) receives above the threshold of 250,000.00 pesos for tax-exempt donations, and is calculated cumulatively over a period of one calendar year. “Disadvantage” is defined as the “net economic benefit of the transfer that goes to the recipient”. But what is the rule for donations during the election period? Will it be taxable or can it be deducted from gross income? Thank you for your time. May God bless us document Him as a sale or as a gift? Should we sign an absolute deed of sale or a DOAS or deed of gift? Okay, so you`re right Atty.
Erwin, it happens often. This transfer is usually done by the parents as a kind of “tax” planning strategy. Because the deductions have changed. Yes. It is now much more beneficial for the heirs. Yes. Unlike the CGT as well and the donor tax, where there is no deduction, inheritance tax has deductions. Okay, maybe that`s not such a good idea anymore. Again, you want to consult your lawyer.
Or if you want a very quick introduction to inheritance laws, you should consider info.legalguide.ph/estate to learn more. That`s it for Atty. Ramon, thank you very much for all these points. The new tax rate is 6% for all donations over $250,000, regardless of the relationship between the donor and the recipient. 6. Are business-to-business donations for donor tax purposes considered to be foreign-to-foreign donations? 9. Where applicable, proof of the valuation of the shares at the time of the donation; To my knowledge, that does not exist. The deed of gift does not require a minimum number of properties to be donated. To be taxable, a gift or trsnsfer must be effective in order to produce the legal effects of a transfer of ownership.
The validity of the gift or transfer depends on the ability of the parties to make a valid gift or transfer and the formalities of the deed of gift or deed of transfer. Invalid donations are not subject to donor tax, as they do not transfer ownership of the property, so this is not a free transfer. A person making the donation must file their tax return and pay the donor`s tax within 30 days of the date of the donation. Donor tax shall be calculated cumulatively over a period of one calendar year […].
