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DIFFERENCE-and-similarites-of-tax-estate and Transfer

The document compares the key differences and similarities between estate tax and donor's tax in the Philippines. Some key differences are that estate tax is filed within one year of death, taxes the transfer of property upon death at higher rates, and requires a death certificate. Donor's tax must be filed within 30 days of gift-giving, taxes inter vivos transfers at lower rates, and needs a notarized deed of donation. However, they are similar in basing property valuations on fair market value, having applicable tax rates defined by law, and requiring proof of valuation for the transferred properties.

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EARLLLOYD VARGAS
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75 views1 page

DIFFERENCE-and-similarites-of-tax-estate and Transfer

The document compares the key differences and similarities between estate tax and donor's tax in the Philippines. Some key differences are that estate tax is filed within one year of death, taxes the transfer of property upon death at higher rates, and requires a death certificate. Donor's tax must be filed within 30 days of gift-giving, taxes inter vivos transfers at lower rates, and needs a notarized deed of donation. However, they are similar in basing property valuations on fair market value, having applicable tax rates defined by law, and requiring proof of valuation for the transferred properties.

Uploaded by

EARLLLOYD VARGAS
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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DIFFERENCE

ESTATE TAX DONOR’S TAX


1. shall be filed within one year from the decedent's death Shall be filed within thirty days after the date the gift is
made.
2. transfer of property upon death Transfer of property within one’s life
3.higher tax rates Lower tax rates
4. requires a true copy of the Death Certificate Requires a copy of Notarized Deed of Donation
5. Extension of payment may be granted No extension of payment
6. estate tax is imposed on the transfer of the decedent’s An act of liberality, whereby a person give gratuitously of a
estate to his lawful heirs and beneficiaries based on the thing or right in favor of another who accepts it
fair market value of The net estate at the time of the
decedent’s death.
7. Transfers in contemplation of death Donative intent

8. Revocable transfer Acceptance of the gift by the donee

9. shall be filed by the executor, or administrator, or any of shall be filed in triplicate by any person, natural or
the legal heir/s of the decedent, whether resident or non- juridical, resident or non-resident, who transfers or causes
resident of the Philippines to transfer property by gift, whether in trust or otherwise,
whether the gift is direct or indirect and whether the
property is real or personal, tangible or intangible
10. The return shall be filed with an authorized agent bank, the tax due thereon shall be paid at the
Revenue Collection Officer or duly authorized Treasurer of time of filing with an authorized agent bank, Revenue
the City or municipality in the Revenue District Office District Officer, Revenue Collection Officer or duly
having jurisdiction over the place of domicile of the authorized Treasurer of the city or municipality where the
decedent at the time of his death. donor was domiciled at the time of the transfer or if there
is no legal residence in the Philippines, with the Office of
the Commissioner.

SIMILARITIES
ESTATE TAX AND DONOR’S TAX
1.Basis in the valuation of property
2. In the case of shares of stocks, the fair market value
shall depend on whether the shares are listed or unlisted
in the stock exchanges.
3. Both have tax rates
4.both have the transfer of properties
5. it is both a tax on the privilege to transfer
6.both tax rates are based on the law prevailing
7.tax shall not apply until there is a donation/death
8.needs proof of valuation
9.both has a requirement of Proof of Claimed Tax Credit( if
applicable)
10. Both have limited liabilities

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