1.
For donations made on or after January 1, 2018, the donor’s tax return shall be filed within
Six (6) months after the date of gift is made
Two (2) months after the date of gift is made
Thirty (30) days after the date of gift is made
One year after the date of gift is made
2. Statement 1: In all cases, void donations are not subject to donor’s tax.
Statement 2: Every donation between the spouse during the marriage shall be void.
Only statement 1 is correct
Both statements are correct
Only statement 2 is correct
Both statements are incorrect
3. 1st: "Consideration" means money or equal value or some goods or service capable of being
evaluated in money.
2nd: Donative intent is required only in indirect gift.
Only 1 is correct
Only 2 is correct
Both 1 and 2 are correct
Both 1 and 2 are incorrect
4. Mr. Bigay owns real property with a cost to him of P1,000,000. On December 25, 2018, with
Assessor’s fair market value of P3,000,000 and BIR’s zonal value of P2,000,000, he donated one-
half of the property pro-indiviso to his look-alike son. And on February 14, 2019, he donated
the other half pro-indiviso again to the same son.
Statement 1: The value of the gross gift on December 25, 2018 is P1,500,000 and on February
14, 2019 is P1,500,000.
Statement 2: The value of the gross gift on December 25, 2018 is P3,000,000 because the
splitting up of the donation into two is from a single intent of donating P3,000,000 to the son.
Choose the correct answer:
Both statements are true.
Both statements are false.
First statement is true but the second statement is false.
First statement is false but the second statement is true.
5. There is reciprocity, when the donor and the donated property is
Non-resident alien; Intangible personal property
Non-resident citizen; Immovable
Non-resident alien; Tangible personal property
Resident alien; Any kind of property
6. Bryan, an individual, donated to his friend Ana, his residential lot with a market value of
P1,000,000. Bryan’s cost in the lot is P100,000. Ana is financially capable of buying the lot. What
tax should be imposed and collected from Bryan as a result of the transaction?
Capital gains tax
Real property tax
Donor’s tax
Capital gains tax and Donor’s tax
7. Donor’s tax credit is not allowed to a donor who is a
Resident citizen
Resident alien
Non-resident citizen
Non-resident alien
8. All of the following except one, are exempt from donor’s tax
Donation to the Philippine National Red Cross
Donation to the Development Academy of the Philippines
Donation directly given to the victims of the typhoon Yolanda
Donation to the City of Davao for public purpose
9. Which of the following is not a deduction from the gross gift
Unpaid mortgage on the donated property assumed by the donee
Unpaid real estate tax on the property assumed by the donee
Diminution on the donated property specifically provided by the donor
Unpaid donor's tax on the donated property assumed by the done
10. Who is not subject to the donor’s tax?
An individual making a donation
A partnership making a donation
An employer who pays premium on the life insurance of its employee.
Not given
11. Maria, a Filipina made the following donations:
a. To Nick, a land worth P450,000 in Manila
b. To Rosalie, a jewelry worth P100,000 in Japan
c. To Ana, PLDT shares amounting to P150,000
d. To Rey, a building in Italy P1,600,000 mortgaged for P50,000 assumed by the donee
e. To Drew, land in Davao worth P300,000
f. P300,000 cash, PNB New York to Hank
g. P200,000 receivable, 50% condoned by Maria
She also transferred the following properties:
Selling price; FMV
Car, Makati P200,000; P300,000
Car, Malaysia 300,000; 200,000
If she is a non-resident alien, her gross gif is:
3,200,000
1,700,000
1,100,000
Some other amount
12. If the gift is made in properties, it shall be appraised at its:
Fair market value as of the time the donor’s tax return is filed.
Fair market value as of the time of donation.
Historical cost at the time the donated property was acquired.
Value in the hands of the donor.
13. Mr. Bigay made the following donations in 2018:
February: To a legitimate daughter who got married on Valentine’s day amounting to P300,000.
August: To legitimate son’s birthday celebration amounting to P200,000.
To an adopted child who got married amounting to P10,000.
Compute the Donor’s tax due for the month of August?
P 8,000
P12,600
P 15,600
P 11,400
14. Mr. Bigay made the following donations in 2018:
February: To a legitimate daughter who got married on Valentine’s day amounting to P300,000.
August: To legitimate son’s birthday celebration amounting to P200,000.
To an adopted child who got married amounting to P10,000.
Compute the Donor’s tax due for the month of August if the gift given to the son was split into
two: P100,000 in August and P100,000 in September 2019?
P 4,400
P 4,000
P 6,600
P 8,000
15. On March 5, 2021, Mr. & Mrs. Lazaro donated a conjugal property to their daughter,
Jennifer who was getting married within 2 months after the date of donation. The fair market
value of the property at the time of donation was P5,000,000. Its fair market value at the time
of marriage was P5,600,000. The donated property was subject to P1,000,000 mortgage
assumed by Jennifer. How much is the net taxable gift of Mrs. Lazaro?
P1,750,000
P2,250,000
P2,500,000
P2,000,000
16. Maria, a Filipina made the following donations:
a. To Nick, a land worth P450,000 in Manila
b. To Rosalie, a jewelry worth P100,000 in Japan
c. To Ana, PLDT shares amounting to P150,000
d. To Rey, a building in Italy P1,600,000 mortgaged for P50,000 assumed by the donee
e. To Drew, land in Davao worth P300,000
f. P300,000 cash, PNB New York to Hank
g. P200,000 receivable, 50% condoned by Maria
She also transferred the following properties:
Selling price; FMV
Car, Makati P200,000 ;P300,000
Car, Malaysia 300,000; 200,000
If she is a non-resident alien, and there is reciprocity law, her gross gift is
850,000
950,000
1,050,000
700,000
17. 1st: A gift occurs when the donor surrenders control over the property.
2nd: If the donor retains an unlimited power to revoke the gift, it is clear that gift has occurred.
Only 1 is correct
Only 2 is correct
Both statements are correct
Both statement are incorrect
18. Which of the following is subject to donor's tax?
Those made between persons who were guilty of adultery or concubinage at the time of the
donation
Those made to conceived and unborn children
Those made to public officer by reason of his office
Those made between husband and wife during their marriage
19. Jay sold his car to Juliet for P200,000. Jay's car costs P500,000, and had a fair market value
of P400,000 at the time of sale. What is the tax consequence of the sale?
There is a taxable gift of P300,000
There is a taxable gift of P200,000
The transfer is for insufficient consideration, hence, not subject to donor's tax
The transfer involved a personal property, hence, not subject to donor's tax
20. The following are the requisites of a donation for purposes of the donor’s tax, except one
Capacity of the donor
Delivery of the subject matter or gift
Capacity of the donee
Donative intent
21. All of the following except one are exempt from gift tax under special laws
Donation to Integrated Bar of the Philippines
Donation to Development Academy of the Philippines
Donation to Philippine Institute of Certified Accountant
Donation to International Rice Research Institute
22. Donor’s tax is a/an
Property tax
Personal tax
Business tax
Excise tax
23. Which of the following statements is correct?
Donation of immovable property may be made orally or in writing
If the value of the real property donated exceeds P5,000, the donation and the
acceptance shall be made in writing, otherwise, the donation shall be void.
An oral donation requires the simultaneous delivery of the thing or of the document
representing the right donated.
All of the choices.
24. Maria, a Filipina made the following donations:
a. To Nick, a land worth P450,000 in Manila
b. To Rosalie, a jewelry worth P100,000 in Japan
c. To Ana, PLDT shares amounting to P150,000
d. To Rey, a building in Italy P1,600,000 mortgaged for P50,000 assumed by the donee
e. To Drew, land in Davao worth P300,000
f. P300,000 cash, PNB New York to Hank
g. P200,000 receivable, 50% condoned by Maria
She also transferred the following properties:
Selling price; FMV
Car, Makati P200,000; P300,000
Car, Malaysia 300,000; 200,000
How much is the gross gift?
5,200,000
4,200,000
3,100,000
Some other amount
25. Which of the following statements is correct?
Donation is perfected not from the time of acceptance but from the time of knowledge
of the donor that the donee has accepted the donation.
Acceptance must be made during the lifetime of the donor and of the donee.
Donations made to conceived and unborn children may be accepted by those persons
who would legally represent them if they were already born.
All of the choices
26. In 2018, Caroline donated P110,000 to her friend Vicky who was getting married. Caroline
gave no other gift during the calendar year. What is the donor’s tax implication on Caroline’s
donation?
The P100,000 portion of the donation is exempt since given in consideration of
marriage.
Caroline shall pay a 30% donor’s tax on the P110,000 donation.
The donation is exempt under the revised donor’s tax rate (TRAIN Law).
A P10,000 portion of the donation is exempt being a donation in consideration of
marriage.
27. The donation is perfected only from the moment the donor knows of the acceptance of the
donee.
Vitiated consent renders the donation voidable.
Acceptance may be made after the lifetime of the donor.
The donee must accept the donation personally or through an authorized person;
otherwise the donation shall be void.
28. Statement 1: only one return shall be filed for several gifts (donations) by a donor to the
different donees on the same date.
Statement 2: if the donation involves conjugal/community property, each spouse shall file
separate return corresponding to his/her respective share in the conjugal/community property.
True, false
False, true
True, true
False, false
29. When is the donation perfected?
The moment the thing donated is delivered, either actually or constructively, to the
donee
Upon payment of the donor’s tax
The moment the donor knows the acceptance by the donee
Upon execution of the deed of donation
30. On March 5, 2021, Mr. & Mrs. Lazaro donated a conjugal property to their daughter,
Jennifer who was getting married within 2 months after the date of donation. The fair market
value of the property at the time of donation was P5,000,000. Its fair market value at the time
of marriage was P5,600,000. The donated property was subject to P1,000,000 mortgage
assumed by Jennifer. How much is the net taxable gift of Mr. Lazaro?
P1,750,000
P2,250,000
P2,500,000
P2,000,000
31. Which of the following is not a deduction from gifts?
Unpaid mortgage on the donated property assumed by the donee
Unpaid real estate tax on the property donated assumed by the donee
Diminution on the donated property specifically provided by the donor
Unpaid donor’s tax on the donated property assumed by the done
32. If an individual performs services for a creditor who in consideration thereof cancels the
debt, the cancellation of indebtedness may amount to
gift
capital contribution
donation inter vivos
payment of income
33. If a donor is a non-resident alien and the rule of reciprocity applies, which of the following
properties will not form part of his gross gift?
Real properties in the Philippines
Tangible personal properties in the Philippines
Intangible personal properties within the Philippines
All of the choices
34. The common characteristic of transfer taxes is that the transfer of property
onerous
takes effect during the lifetime of the transferor
takes effect upon the death of the transferor
is gratuitous
35. A tax minimization scheme which is done by spreading the gift over numerous calendar
years to avail of lower tax liability
spread-out method
donation of life insurance
splitting of gift
void donation
