TITLE III — ESTATE AND DONOR’S TAXES
established in the Philippines any share, obligation, bond or right by way of gift
inter vivos or mortis causa, legacy or inheritance, unless a certification from the
Commissioner that the taxes fixed in this Title and due thereon have been paid is
shown.
If a bank has knowledge of the death of a person, who maintained a bank deposit
account alone, or jointly with another, it shall allow any withdrawal from the
said deposit account, subject to a final withholding tax of six percent (6%).50 For
this purpose, all withdrawal slips shall contain a statement to the effect that all
of the joint depositors are still living at the time of withdrawal by any one of the
joint depositors and such statement shall be under oath by the said depositors.
CHAPTER II. — DONOR’S TAX
SEC. 98. Imposition of Tax. —
(A)
There shall be levied, assessed, collected and paid upon the transfer
by any person, resident or nonresident, of the property by gift, a tax,
computed as provided in Section 99.
(B)
The tax 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.
SEC. 99. Rates of Tax Payable by Donor. —
(A)
In General. — The tax for each calendar year shall be six percent (6%)
computed on the basis of the total gifts in excess of Two hundred fifty
thousand pesos (P250,000) exempt gift made during the calendar year.51
(B)
Any contribution in cash or in kind to any candidate, political party
or coalition of parties for campaign purposes shall be governed by the
Election Code, as amended.
SEC. 100. Transfer for Less Than Adequate and Full Consideration. — Where
property, other than real property referred to in Section 24(D), is transferred for
less than an adequate and full consideration in money or money’s worth, then
the amount by which the fair market value of the property exceeded the value
of the consideration shall, for the purpose of the tax imposed by this Chapter,
be deemed a gift, and shall be included in computing the amount of gifts made
during the calendar year: Provided, however, That a sale, exchange, or other
transfer of property made in the ordinary course of business (a transaction
which is a bona fide, at arm’s length, and free from any donative intent), will be
112
50
As amended by Section 27 of the TRAIN Law.
51
As amended by Section 28 of the TRAIN Law.
Isla Lipana & Co., the Philippine member firm of the PwC network
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