Section 98 computing the amount of gifts made

Imposition of Tax during the calendar year.

Section 101
(A) There shall be levied, assessed, Exemption of Certain Gifts
collected and paid upon the transfer by
any person, resident or nonresident, of the
property by gift, a tax, computed as (A) Gifts Made by a Resident.
provided in Section 99.
(B) The tax shall apply whether the 1. Dowries or gifts made on account
transfer is in trust or otherwise, whether of marriage and before its
the gift is direct or indirect, and whether celebration or within one year
the property is real or personal, thereafter by parents to each of
tangible or intangible. their legitimate, recognized
natural, or adopted children to the
Section 99
extent of the first Ten thousand
Rates of Tax Payable by Donor pesos (P10,000):

Rate: 6% on the basis of the total
gifts in excess of P250,000 exempt
from gift made during the calendar
year.
Tax Payable by Donor if Donee is a
Stranger
(6%) of the net gifts.
'stranger,' is a person who is not a:
1. Brother, sister (whether by whole
or half-blood), spouse, ancestor
and lineal descendant; or
2. Relative by consanguinity in the
collateral line within the fourth
degree of relationship.
2. Gifts made to or for the use of the
National Government or any entity
created by any of its agencies
which is not conducted for profit, or
to any political subdivision of the
said Government; and
3. Gifts in favor of an educational
and/or charitable, religious, cultural
or social welfare corporation,
institution, accredited
nongovernment organization, trust
or philanthrophic organization or
research institution or organization
Provided: Not more than thirty
percent (30%) of said gifts shall be
used by such donee for
administration purposes.

Any contribution in cash or in kind For the purpose of the exemption,

to any candidate, political party or a 'non-profit educational and/or
coalition of parties for campaign charitable corporation, institution,
purposes - governed by the accredited nongovernment
Election Code, as amended. organization, trust or
philanthrophic organization and/or
Section 100 research institution or organization'
Transfer for Less Than Adequate and is a school, college or university
full Consideration and/or charitable corporation,
accredited nongovernment
Where property, other than real property, organization, trust or
is transferred for less than an adequate philanthrophic organization and/or
and full consideration in money or research institution or organization,
money's worth, then the amount by incorporated as a nonstock entity,
which the fair market value of the property paying no dividends, governed by
exceeded the value of the consideration = trustees who receive no
deemed a gift, and shall be included in compensation, and devoting all its
income, whether students' fees or
 gifts, donation, subsidies or other
forms of philanthrophy, to the
accomplishment and promotion of
the purposes enumerated in its
Articles of Incorporation.
(B) Gifts Made by a Nonresident not a
Citizen of the Philippines
(Nonresident alien)
1. Gifts made to or for the use of the
National Government or any entity
created by any of its agencies,
which is not conducted for profit, or
to any political subdivision of the
said Government.
2. Gifts in favor of an educational
and/or charitable, religious, cultural
or social welfare corporation,
institution, foundation, trust or
philanthrophic organization or
research institution or organization:
Provided, however, That not more
than thirty percent (30% of said
gifts shall be used by such donee
for administration purposes.
(C) Tax Credit for Donor's Taxes Paid
to a Foreign Country
In General
The tax imposed upon a donor who
was a citizen or a resident at the
time of donation shall be credited
with the amount of any donor's tax
of any character and description
imposed by the authority of a
foreign country.
Limitations on Credit
a) The amount of the credit in respect
to the tax paid to any country shall
not exceed the same
proportion of the tax against
which such credit is taken, which
the net gifts situated within such
country taxable under this Title
bears to his entire net gifts; and
b) The total amount of the credit
shall not exceed the same
proportion of the tax against
which such credit is taken,
which the donor's net gifts situated
outside the Philippines taxable
under this title bears to his entire
net gifts.
Section 102
Valuation of Gifts Made in Property
Property - the fair market value thereof at
the time of the gift shall be considered the
amount of the gift.
Real property, provisions of Section 88(B)
shall apply to the valuation thereof.
Section 103
Filing of Return and Payment of Tax
Requirements
Any individual who makes any transfer by
gift (except those which, under Section
101, are exempt from the tax provided
for in this Chapter) shall, for the purpose
of the said tax, make a return under oath
in duplicate. The return shall set forth:
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
required by rules and regulations
made pursuant to law.
Time and Place of Filing and Payment
The return of the donor shall be filed
within thirty (30) days after the date the
gift is made and the tax due thereon shall
be paid at the time of filing.
Except in cases where the Commissioner
otherwise permits, the return shall be filed
and the tax paid to:
1. an authorized agent bank
2. the Revenue District Officer
3. Revenue Collection Officer or
4. duly authorized Treasurer of the
city or municipality where the
 donor was domiciled at the time of
the transfer, or
5. if there be no legal residence in
the Philippines, with the Office of
the Commissioner.
Gifts made by a nonresident
The return may be filed with the
Philippine Embassy or Consulate in
the country where he is domiciled at the
time of the transfer, or directly with the
Office of the Commissioner.
Section 104
Definitions
'GROSS ESTATE' AND 'GIFTS' – include real
and personal property, whether tangible
or intangible, or mixed, wherever situated
Provided: where the decedent or donor
was a nonresident alien at the time of
his death or donation, as the case may
be, his real and personal property so
transferred but which are situated outside
the Philippines shall not be included as
part of his 'gross estate' or 'gross gift'.
Provided further:
1. franchise which must be exercised in the
Philippines;
2. shares, obligations or bonds issued by any
corporation or sociedad anonima organized
or constituted in the Philippines in
accordance with its laws;
3. shares, obligations or bonds by any foreign
corporation eighty-five percent (85%) of the
business of which is located in the
Philippines;
4. shares, obligations or bonds issued by any
foreign corporation if such shares,
obligations or bonds have acquired a
business situs in the Philippines;
5. shares or rights in any partnership, business
or industry established in the Philippines
Provided, still further: no tax shall be
collected in respect of intangible personal
property:
a. if the decedent at the time of his
death or the donor at the time of the
donation was a citizen and resident of
a foreign country which at the time of
his death or donation did not impose a
transfer tax of any character, in
respect of intangible personal
property of citizens of the Philippines
not residing in that foreign country, or
b. if the laws of the foreign country of
which the decedent or donor was a
citizen and resident at the time of his
death or donation allows a similar
exemption from transfer or death
taxes of every character or description
in respect of intangible personal
property owned by citizens of the
Philippines not residing in that foreign
country.
DEFICIENCY
the amount by which tax imposed by
this Chapter exceeds the amount
shown as the tax by the donor upon
his return; but the amount so shown
on the return shall first be increased
by the amount previously assessed (or
Collected without assessment) as a
deficiency, and decreased by the
amounts previously abated, refunded
or otherwise repaid in respect of such
tax, or
if no amount is shown as the tax by
the donor, then the amount by which
the tax exceeds the amounts
previously assessed, (or collected
without assessment) as a deficiency,
but such amounts previously
assessed, or collected without
assessment, shall first be decreased
by the amount previously abated,
refunded or
considered as situated otherwise
in the Philippines: repaid in
respect of
such tax.