Donor’s Tax Page 1 of 4
Donation - an act of liberality
TAX
02
TAXATION
Donor’s Tax
Kenneth L. Manuel, CPA, J.D.1
2024 ed.
Void Donation - Those made to public officials or
39. All of the following are void donations, except: his wife, descendants, and ascendants by
a. Donations of future inheritance reason of his office,
b. Donations made to a wife of a public official, by reason of his office
c. Oral donation of real property Form of Donation
d. Donation to an unborn donee a. Movable Property
b. Immovable Property
40. Seulgi sold to Irene a parcel of land. The land was used by Seulgi as her resthouse.
The assessed value of the land is ₱4,000,000, while its zonal value is ₱4,200,000.
She sold it to Seulgi for ₱2,000,000. Assuming that there is no donation made
during the calendar year prior to this sale, how much is the donor’s tax due on the
transaction?
a. ₱ -0- c. ₱ 117,000 4,200,000 x 6% = 252,000
b. ₱ 105,000 d. ₱ 237,000 Exempted: real property & ....
41. Statement 1: A bequest to an educational institution is exempt from estate tax
provided not more than 30% will be used for administrative purposes.
Statement 2: A donation to an educational institution is exempt from donor’s tax
provided not more than 30% will be used for administrative purposes.
a. Only Statement 1 is true. c. Both statements are true.
b. Only Statement 2 is true. d. Both statements are not true.
42. Which of the following is not exempt from donor’s tax?
a. Campaign contributions duly reported to the Commission on Elections.
b. Renunciation of the surviving spouse of his/her share in the absolute
community of property.
c. Donations to local government units.
d. Renunciation of an heir in favor of no particular person.
43. A donation was made of a parcel of land with a zonal value of P4,000,000, an
assessed value of P5,000,000, and an appraised value of P5,500,000. The land is
subject of a real estate mortgage, with the outstanding amount being
P1,000,000. The liability will be assumed by the donee.
Which of the following statements is true?
Statement 1: The amount of gross gift is P5,500,000.
Statement 2: The amount of deductions from gross gift is P1,000,000.
a. Only Statement 1 is true. c. Both statements are true.
b. Only Statement 2 is true. d. Both statements are not true.
1 Kenneth L. Manuel is a lawyer and a Certified Public Accountant. He placed 14th in the October 2014 CPA Licensure Examinations
and 6th in the 2019 Philippine Bar Examinations. He graduated with a degree of BS Accountancy magna cum laude from Colegio de San
Juan de Letran and a degree of Juris Doctor cum laude from the University of Santo Tomas (UST). Practicing taxation since 2014, he was
a tax accountant at SGV & Co., a tax lawyer at Divina Law Offices, and a tax professor in numerous accounting schools and Bar review
schools. His current tax work includes being a tax reviewer at the Review School of Accountancy (ReSA), a tax professor at the UST
Faculty of Civil Law, an author of a tax reviewer, and a Court Attorney at the Court of Tax Appeals.
These handouts are not for sale. While private, educational use may be tolerated, unauthorized commercial reproduction and distribution
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Donor’s Tax Page 2 of 4
For items 44 to 46, refer to the following information:
On February 14, 2024, Sullyoon donated to Bae a car with a fair market value of P500,000.
On August 3, 2024, Sullyoon made another donation to Kyujin. The property donated is
a piece of jewelry with a fair market value of P1,200,000. The piece of jewelry is pledged
as security for two loans. The first loan has an outstanding amount of P400,000, which
will not be assumed by the donee. The second loan has an outstanding amount of
P300,000, which will be assumed by the donee.
44. How much should be reflected in BIR Form No. 1801 Item 34 (Total Net Gifts in
this Return)
a. ₱ 500,000 c. ₱ 1,200,000
b. ₱ 900,000 d. ₱ 1,400,000
45. How much should be reflected in BIR Form No. 1801 Item 36 (Total Net Gifts)
a. ₱ 900,000 c. ₱ 1,400,000
b. ₱ 1,200,000 d. ₱ 1,700,000
46. How much should be reflected in BIR Form No. 1801 Item 38 (Total Net Gifts
Subject to Tax)
a. ₱ 950,000 c. ₱ 1,400,000
b. ₱ 1,150,000 d. ₱ 1,450,000
47. The deadline for the filing of the donor’s tax return is:
a. Thirty (30) days from the date of donation.
b. Six (6) months from the date of donation.
c. One (1) year from the date of donation.
d. Two (2) years from the date of donation.
48. The date of donation is the date of:
a. Perfection of the donation, which is the acceptance by the donee of the
donation.
b. Perfection of the donation, which is the knowledge of the donor of the
acceptance by the donee of the donation.
c. Completion of the donation, which is the delivery of the thing donated.
d. Filing of the donor’s tax return. the donors knows of the acceptance by the donee, it is
completed by delivery
49. The deadline for the filing of the donor’s tax return is:
a. Thirty (30) days from the date of donation.
b. Six (6) months from the date of donation.
c. One (1) year from the date of donation.
d. Two (2) years from the date of donation.
Donor’s Tax Page 3 of 4
CUMULATIVE PROBLEM
For items 50 to 55, refer to the following information:
Alex, a purely compensation income earner and a resident citizen, made the following
donations during the calendar year 2023:
Date Transaction Amount
Donated a car to his eldest son, on account of his
January 6 promotion for work ₱ 850,000
Donated a laptop to his nephew, on account of
March 15 graduating with highest honors 80,000
Donated cash to his neighbor, after being informed that
her neighbor's son had been admitted to the
April 2 hospital due to a rare disease 150,000
Donated cash to a non-stock non-profit charitable
institution, ₱200,000 was used for administrative
August 15 purposes 1,000,000
Donated a parcel of land to his father, presented at
acquisition cost, with a zonal value of ₱3,000,000,
and an assessed value of ₱3,500,000. The land is
subject to a mortgage of ₱1,000,000, which will be
November 22 assumed by the donor. 2,400,000
50. Statement 1: The March 15 donation is exempt from donor’s tax because it did not
exceed the exempt threshold.
Statement 2: The April 2 donation is exempt from donor’s tax because it did not
exceed the exempt threshold.
a. Only Statement 1 is true. c. Both statements are true.
b. Only Statement 2 is true. d. Both statements are not true.
51. When is the deadline for the payment of donor’s tax on the November 22
donation?
a. December 15 c. December 25
b. December 22 d. January 15 of the next year
52. How much is the donor’s tax due on the January 6 donation?
a. ₱ -0- c. ₱ 51,000
b. ₱ 36,000 d. ₱ 60,000
53. On the donor’s tax return to be filed for the November 22 donation, how much
should be reflected in Line 34 (Total Net Gifts in this Return)?
a. ₱ 2,400,000 c. ₱ 3,000,000
b. ₱ 2,500,000 d. ₱ 3,500,000
54. On the donor’s tax return to be filed for the November 22 donation, how much
should be reflected in Line 38 (Total Net Gifts Subject to Tax)?
a. ₱ 5,330,000 c. ₱ 4,330,000
b. ₱ 4,100,000 d. ₱ 4,580,000
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55. Statement 1: A Notice of Donation is required to be filed with Alex to the BIR on
account of his August 15 donation.
Statement 2: A Notice of Donation is required to be filed with Alex to the BIR on
account of his November 22 donation.
a. Only Statement 1 is true. c. Both statements are true.
b. Only Statement 2 is true. d. Both statements are not true.
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