Donor’s Tax is a tax on a donation or gift, and is imposed on the gratuitous transfer of property between two or more persons who are living at the time of the 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, tangible or intangible.
The following requirements must be submitted upon field or office audit of the tax case before the Tax Clearance Certificate/Certificate Authorizing Registration can be released:
1. Deed of Donation
2. Sworn Statement of the relationship of the donor to the donee
3. Proof of tax credit, if applicable
4. Certified true copy(ies) of the Original/Transfer/Condominium Certificate of Title (front and back) of lot and/or improvement donated, if applicable
5. Certified true copy(ies) of the latest Tax Declaration (front and back pages) of lot and/or improvement, if applicable
6. “Certificate of No Improvement” issued by the Assessor’s office where the properties have no declared improvement, if applicable
7. Proof of valuation of other types of personal properties, if applicable
8. Proof of claimed deductions, if applicable
9. Copy of Tax Debit Memo used as payment, if applicable
Additional requirements may be requested for presentation during audit of the tax case depending upon existing audit procedures.
File the return in triplicate (two copies for the BIR and one copy for the taxpayer) with any Authorized Agent Bank (AAB) of the RDO having jurisdiction over the place of the domicile of the donor at the time of the transfer (see list of AAB below).
In places where there are no AAB, the return will be filed directly with the Revenue Collection Officer or duly Authorized City or Municipal Treasurer where the donor was domiciled at the time of the transfer, or if there is no legal residence in the Philippines, with Revenue District No. 39 – South Quezon City (see list of RDO below).
In the case of gifts made by a non-resident alien, the return may be filed with Revenue District No. 39 – South Quezon City, or with the Philippine Embassy or Consulate in the country where donor is domiciled at the time of the transfer.
Submit all documentary requirements and proof of payment to the Revenue District Office having jurisdiction over the place of residence of the donor.
Effective January 1, 1998 to present (Republic Act No. 8428)
1. Rate applicable shall be based on the law prevailing at the time of donation.
2. When the gifts are made during the same calendar year but on different dates, the donor’s tax shall be computed based on the total net gifts during the year.
Donation made to a stranger is subject to 30% of the net gift. A stranger is a person who is not a:
- brother, sister (whether by whole or half blood), spouse, ancestor and lineal descendants; or
- relative by consanguinity in the collateral line within the fourth degree of relationship.
For rates before January 1, 1998, please click here.
Within thirty days (30) after the date the gift (donation) is made. A separate return will be filed for each gift (donation) made on the different dates during the year reflecting therein any previous net gifts made during the same calendar year.
If the gift (donation) involves conjugal/community/property, each spouse will file separate returns corresponding to his/ her respective share in the conjugal/community property. This rule will also apply in the case of co-ownership over the property.