ARTS-PRTC CPA Review

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TAXATION 42 (DONOR’S TAX) OMAR G. AMPONGAN

Definition–DONATION is an act of liberality whereby a Net gift subject to tax x x

person disposes gratuitously of a thing or a right in x Tax rate 6%
favor of another who accepts it. Donor’s tax due x x

Essential Requisites of a Donation 2. Succeeding donations during the year:

1. Capacity of the donor.
Gross gift x x
2. Donative intent in cases of direct gift.
Less: Deductions x x
3. Acceptance by the donee. Net gift x x
4. Delivery, whether actual or constructive, of the Add: Prior net gift(s) during the calendar year x_x
subject matter of the gift. Total net gifts x x
MCQ Less: Exempt gift 250,000
1. The following are the requisites of a donation for Taxable net gift x x
x Tax rate 6%
purposes of the donor’s tax, except one:
Tax due x x
A. Capacity of the donor
- Tax credits x x
B. Capacity of the donee Payments for prior gifts during the year xx
C. Delivery of the subject matter of gift Foreign donor’s tax paid xx
D. Donative intent Tax paid in previously paid return (if this is
Formal requisites of donation an amended return) xx x x
1. Movable or personal property - maybe made orally Composition of gross gifts (same with estate
or in writing. taxation)
Exception: If the value of the property donated Properties classified as intangibles within (same
exceeds P5,000, the donation and acceptance with estate taxation)
shall be made in writing, otherwise the donation
shall be void. MCQ
3. Which of the following is not a requisite of the rule on
2. Immovable or real property - must be in public reciprocity in donor’s tax?
instrument specifying therein the property a. The donor must be a nonresident alien.
donated and the value of the charges, if any, b. The property is a personal property.
which the donee must satisfy. The acceptance c. The property must be an intangible personal
maybe made in the same deed of donation or in property.
separate public instrument but it shall not take d. The property must be situated in the Philippines
effect unless it is done during the lifetime of the
donor. Questions 4 - 6 are based on the following data:
Kinds of donation Ara gave the following properties to various donees on
1. Donation inter-vivos – made between living April 25, 2023:
persons and which is perfected from the moment
the donor knows of the acceptance by the donee; House and lot in London (£1= P63) £ 60,000
subject to donor’s tax. Apartment house in Cebu City P8,000,000
Car in Cebu City 520,000
2. Donation mortis causa –which takes effect upon Car in London £ 18,000
the death of the donor and partakes of the nature Savings deposit with BDO, Cebu City 50,000
of a testamentary disposition; subject to estate Time deposit, bank in London £ 2,000
tax. Accounts receivable, debtor residing in
MCQ New York St., Cubao 140,000
2. Which of the following statements is WRONG? A Accounts receivable, debtor residing in
distinction between a donation inter vivos and a London £ 600
donation mortis causa is: Franchise exercised in London £ 3,000
a. The first takes effect during the lifetime of the Franchise exercised in Philippines 120,000
grantor while the second takes effect upon the Investment in Good Time Co.,
death of the grantor. partnership established in London £10,000
b. The first is subject to donor’s tax while the second is Investment in Lovers Company,
subject to the estate tax. partnership established in the Philippines 125,000
c. The first always requires a public document while 4. The gross gift if Ara is a resident or citizen
the second may not require a public document. A. P13,895,000 C. P 8,520,000
d. The first is valued at fair market value at the time
the property is given while the second is valued at B. 8,955,000 D. 14,851,800
fair market value at the time of the death of the
grantor. 5. The gross gift if Ara is a resident and citizen of United
States (without reciprocity).
Donor’s tax is a tax on the privilege to transmit A. P13,895,000 C. P 8,520,00
property between two or more persons who are living B. 8,955,000 D. None
at the time of the donation; tax shall apply whether
the transfer is in trust or otherwise, whether the gift 6. The gross gift if Ara is a resident and citizen of foreign
is direct or indirect. country (with reciprocity).
A. P 13,895,000 C. P8,520,000
Formula in computing Donor’s Tax: B. 8,955,000 D. None
1. First donation during the year: Questions 7 and 8 are based on the following data:
Gross Gift x x A made the following donations.
Less: Deduction/Exemption x x  To B, a land worth P450,000 in Cubao, Quezon City
Net gift x x
Less: Exempt gift  To C, jewelry worth P100,000 in Hongkong.
x x
 To D, Jollibee shares amounting to P150,000.
  To E, a condo unit in Hongkong, P1,600,000, 8. National Commission for Culture and the Arts
mortgaged for P50,000 assumed by the donee. 9. Philippine Normal University
 To F, land in Davao, P300,000. 10. University of the Philippines
 To G P300,000 worth of bonds in Hongkong. 11. National Water Quality Management Fund
12. Philippine Investors Commission
He also transferred the following properties: 13. Ramon Magsaysay Award Foundation
Selling Price FMV 14. Philippine-American Cultural Foundation
Car, Phil. P 200,000 P 300,000 15. International Rice Research Institute
Car, Hongkong 300,000 200,000 16. Task Force on Human Settlements
Residential land, Phil. 1,000,000 2,000,000 17. National Social Action Council
7. If he is a nonresident citizen his gross gift is: 18. Aquaculture Department of the Southeast Asian
a. P2,100,000 c. P2,950,000 Fisheries Development Center
b. P1,950,000 d. P3,000,000 19. Development Academy of the Philippines
20. Integrated Bar of the Philippines
8. If he is a non-resident Japanese, and with reciprocity,
his gross gift is: MCQ
a. P850,000 c. P1,000,000 10. Which of the following statements is WRONG? A
b. P650,000 d. P 700,000 deduction for a donation in 2023 on mortgage assumed
by the donee:
9. All of the following statements are wrong, EXCEPT
a. shall be allowed to a resident citizen donor when the
one. If the donor is a NONRESIDENT ALIEN:
property donated is located abroad.
a. Property situated abroad but donated to a citizen of
b. shall be allowed to a resident citizen donor when the
the Philippines will pay the donor’s tax.
property donated is located within the Philippines.
b. Property situated in the Philippines but donated to a
c. shall not be allowed to a nonresident alien donor
donee abroad will not pay the donor’s tax.
when the property donated is located abroad.
c. Property outside the Philippines donated on
d. shall not be allowed to a nonresident alien donor
account of marriage to a resident of the Philippines
when the property donated is located within the
has a deduction of P10,000.
Philippines.
d. Real property in the Philippines with a value of
P3,000,000 donated to a nonresident citizen will 11. On a contribution to a non-profit educational institution
pay a donor’s tax. by an individual, which of the following CORRECTLY
state/s the rule/s in computing the donor’s tax?
Deductions from gross gifts a. There is no deduction from the gross gift.
1. Mortgage on the property donated assumed by b. It is not considered a gift on which there will be a
the donee. donor’s tax.
2. Amount specifically provided by the donor as c. It is considered a gross gift and a deduction from the
diminution on the property donated. gross gift.
Exemptions from gross gifts d. It pays the donor’s tax at the time of the contribution
1. Gifts made to the national government or any at the graduated rates of donor’s tax.
entity created by any of its agencies which is not 12. Since a donation to a charitable institution has a
conducted for profit, or any political subdivision. deduction without any ceiling,
2. Gifts in favor of the following non-profit Statement 1: The net gift will be zero, so that in
institutions: computing the donor’s tax, the donation may be
a. Educational omitted in gross gifts if it is likewise omitted in
b. Charitable deductions.
c. Religious Statement 2: The gross gifts should be reported and
d. Cultural the deduction shall be claimed.
e. Social welfare a. Both statements are correct.
f. Accredited NGO b. Both statements are wrong.
g. Trust or philanthropic organization c. The first statement is correct and the second
h. Research institution statement is wrong.
Requisites:
d. The first statement is wrong and the second
1. Provided, that not more than 30% of said gifts
statement is correct.
shall be used for administration purposes; 13. R donated a total amount of P 2,000,000, 50% to the
City of Manila and 50% to a charitable institution,
2. The non-profit institutions must be accredited
Hospicio de San Jose. Upon inquiry, it was verified that
by the Philippine Council for NGO Certification
the charitable institution’s total receipts from donation
(PCNC).
amounted to P10M and its total administrative
A non-profit institution is one which is: expenses reached P4.0M. R can claim a total
a. organized as a non-stock entity; deduction/ exemption of:
b. paying no dividends; a. P2,000,000 c. P1,000,000
c. governed by trustees who receive no b. P1,500,000 d. P1,250,000
compensation; and
d. devoting all income whether students’ fees or 14. All of the following except one, are exempt from gift tax
gifts, donation subsidies or other forms of under special laws:
philanthropy, to the accomplishment of the a. Donation to Lung Center of the Philippines of
purposes enumerated in its Articles of Personal Protective Equipments against Covid 19
Incorporation. b. Donation to Development Academy of the
2. P250,000 per year Philippines.
c. Donation to PICPA
Gifts exempt under special law – Donations to d. Donation to International Rice Research Institute.
1. Rural Farm School
2. People’s Television Network, Incorporated
15. Donation to the following is not exempt from donor’s
3. People’s Survival Fund
tax
4. Aurora Pacific Economic Zone and Freeport
a. Philippine Red Cross
Authority
b. Development Academy of the Philippines
c. Ramon Magsaysay Award Foundation
5. Girl Scouts of the Philippines
d. by a domestic corporation to a presidential
6. Philippine Red Cross
candidate even if spent during the campaign period.
7. Tubbataha Reefs Natural Park
 donation.
RATE OF TAX: 6% computed on the basis of total
Exclusive property of Mr. Aban worth P100,000 was
gifts in excess of P250,000 exempt gift made during
donated to his brother, Bulaong.
the calendar year.
The tax payable on Mr and Mrs Aban, respectively,
MCQ A. 4,500; 97,500 C. 6,000; 6,000
16. When the donee or beneficiary is a brother-in-law, the B. 4,500; 19,500 D. 12,000; 6,000
tax payable by the donor shall be
a. 30% of the gross gifts. Transfer for less than adequate consideration
b. 30% of the net gifts. Where property, other than real property (capital
c. 6% of the net gift asset) is transferred for less than adequate
d. 6% of the net gift if the donation is beyond consideration in money or money’s worth, the
P250,000 amount by which the fair market value exceeded the
17. N made donations to O and P, son and daughter-in- value of consideration shall be deemed a gift subject
law, on account of marriage, of real property with a fair to donor’s tax.
market value of P1,500,000, but subject to a mortgage A sale, exchange, or other transfer of property made
of P200,000 which was assumed by the donees. in the ordinary course of business, a transaction
The donor’s tax on the donation is which is bona fide, at arm’s length, and free from any
a. P77,750 c. P63,000 donative intent) will be considered as made for an
b. P78,000 d. P57,000 adequate and full consideration in money or money’s
Donations made by spouses worth).
In case of donation made by husband and wife out of MCQ
conjugal or community funds: 24. Arandasi sold the following assets:
1. Each is donor to the extent of 1/2 of the donation. Market Selling Cost/
2. If only one spouse signed the deed of donation, Value Price Book Value
there is only one donor for donor’s tax purposes, Jewelry P 530,000 P 15,000 P 300,000
without prejudice to the right of the other spouse Residential House 3,000,000 2,300,000 2,750,000
to question the validity of the donation. Apartment house 2,500,000 1,600,000 950,000
MCQ Del. Truck 450,000 150,000 650,000
18. Husband and wife made out of community property The gift tax, if any, in each of the independent
cash of P1,000,000, a donation on account of transactions above.
marriage, to a legitimate child. Which of the following
statements is NOT CORRECT on deduction for (A) (B) (C) (D)
donation on account of marriage? Jewelry P 15,900 P15,900 P 15,900 P31,800
a. P250,000 exemption to each spouse, on separate Res house 120,000 None None 75,000
computations for donor’s tax. Apt house 3,000 3,000 39,000 18,000
b. P500,000 donation to each spouse, on separate Del truck None 3,000 3,000 None
computations for donor’s tax. 25. Situation 1: Bizman, in trading business, had a
c. P250,000 exemption on a separate computation for receivable of P350,000 from Tango. Without exerting
donor’s tax of the husband. utmost effort to collect, Bizman canceled the
d. P125,000 exemption for each spouse. indebtedness of Tango.
Questions 19 to 22 are based on the following data: Situation 2: Cel Company sold to Bay its delivery truck
worth P400,000 in an arm’s length and bona fide
Mr. and Mrs. Alba gave the following donations:
transaction without any donative intent for a
05/03/23 Community property valued at P400,000 consideration of P350,000, to take effect immediately
donated to Barbado, legitimate son who got upon receipt of the consideration.
married January 1, 2023.
Which statement is CORRECT?
07/123/2 Exclusive property donated to Carla,
a. Situation 1 is bad debt expense of the business and
3 legitimate daughter who got married June 1,
should not be treated as involving a taxable
2023. Value– P500,000.
donation.
12/30/23 Community property donated to Carla. The
b. Situation 2 shall be considered a bad bargain and
dowry has a market value of P800,000
involving a taxable donation.
02/05/24 Community property donated to Dianne,
c. Situation 2 involves a donation of P50,000 and
P700,000 with an unpaid mortgage of
should be covered by a donor’s tax return within
P150,000 assumed by the donee.
thirty days from the date of the sale
19. The gift tax payable of Mrs. Alba on May 3 donation d. Situation 1 involves a donation of P350,000 and
A. 3,000 B. 5,600 C. 800 D. None should be covered by a donor’s tax return within
20. The gift tax payable of Mr. Alba on July 14 donation thirty days from the date of cancellation of the
A. 21,800 B. 27,000 C.30,000 D. 6,400 indebtedness.

21. The gift tax payable of Mrs. Alba on Dec 30. 26. Q sold his residential land on September 5, 2023 to his
A. 45,000 B. 21,000 C. 8,200 D. 15,800 high school classmate for P3,000,000 when the market
value was P5,000,000. Cost of the land to Q was
22. Donor’s tax payable on Mr. Alba on Feb 5, 2024 P1,000,000. He gave a commission of P150,000 to the
A. 45,000 B. 9,000 C. 8,200 D. 1,500 broker and spent for documentary stamp taxes and
transfer fees the amount of P90,000. The total internal
Donation to several donees
revenue tax/es payable is/are:
If the donor had made several donations to different
a. Final capital gain tax of P300,000.
persons on the same date, the total net gift shall be
b. Final capital gain tax of P180,000.
computed together and contained in one donor’s tax
c. Donor’s tax of P600,000.
return only.
d. P375,000.
MCQ
23. Mr. and Mrs. Aban gave the following donations on Valuation of property – at fair market value at the
July 1, 2023: time of gift (see estate tax).

Community property was donated to Balae, sister of MCQ

Mr. Aban. The fair market value of the property is 27. The audited financial statements of Z Corporation had
P700,000. Balae promised to pay the tax due on the the following data:
 MCQ
Assets - P18,000,000 29. One of the following statements is false:
Liabilities - 10,000,000 A. As a rule, contracts of donation between husband
Outstanding shares - 200,000 and wife are void.
Par value per share - 20 B. The donation by a public works contractor to a
If stockholder RR donated 15,000 common shares to Mayor, in view of her public office is void in all
his fiancée, the donor’s tax due and payable is – cases.
C. Donations given by a senator to his friend, a PNP
A. P 18,000 C. P 36,000 Chief, is void in all cases.
B. 3,000 D. 21,000 D. Donation to a conceived or unborn children is valid
30. Which of the following statements is CORRECT? A
OTHER MATTERS: donation inter-vivos by HUSBAND AND WIFE
1. Renunciation of inheritance - A renunciation of a. is a donation of conjugal property that will require
inheritance by surviving spouse or an heir in favor one P250,000 exemption from gross gift, if the
of: spouses are under the system of conjugal
a. Co-heir - not a donation, unless specifically and partnership of gains.
categorically done in favor of identified heirs to b. is a donation of community property that will require
the exclusion in favor of other heirs two P125,000 exemption from gross gift, if the
b. Not a co-heir – there is donation subject to spouses are under the system of absolute
donor’s tax community of property.
c. Renunciation by surviving spouse of his/her c. is a donation of exclusive property by either spouse
share in the common property after the that will require one computation of the donor’s tax,
dissolution of the marriage in favor of the heirs if the spouses are under the system of conjugal
of the deceased spouse or any other person/s – partnership of gains.
subject to donor’s tax d. is a donation of each spouse to the extent of one-
half that will require separate computation for two
MCQ donor’s taxes, under whichever property
28. Which of the following examples is taxable? relationship exists between the spouses.
A. On June 1, 2023, D made a gift of P200,000 to his
daughter on account of her marriage celebrated on 31. Which of the following statements is CORRECT? A
May 1, 2022. donation inter vivos by persons cohabiting together as
B. On June 1, 2023, T made a gift of P300,000 to his husband and wife, jointly during their cohabitation
daughter on account of her marriage celebrated on a. is a donation of conjugal property that will require
May 1, 2020 one computation of the donor’s tax, if the spouses
C. U, a minimum wage earner, gives his son a gift are under the system of conjugal partnership of
worth P20,000 as a birthday gift. gains.
D. V and W are the only heirs of X. V renounces his b. is a donation of community property that will require
share of inheritance in favor of W. one computation of the donor’s tax, if the spouses
are under the system of absolute community of
2. Donation of life insurance property.
Life insurance naming a third person as c. is a donation of exclusive property by either spouse
beneficiary which is payable upon the death of that will require one computation of the donor’s tax,
the insured results to a donation in favor of if the spouses are under the system of conjugal
beneficiary on the amount of premiums paid by partnership of gains.
the insured. d. is a donation of each co-owner to the extent of one-
half of the value of the property that will require two
3. Donation to candidates or political parties.
separate computations for two donor’s taxes.
Any donations/contributions in cash or in kind to
any candidate, political party or coalition of Tax credit for donor’s tax paid to a foreign
parties for campaign purposes – country
1. Who can claim? Only citizen or resident alien donor.
a. shall be exempt from donor’s tax if
2. Limitations on tax credit:
utilized/spent during the campaign period.
Those utilized before or after the campaign 1st limitation
period are subject to donor’s tax.
Net gift per foreign country
b. Corporations, domestic or foreign, which shall x Phil tax
Total net gift
give donations in aid of any political party or
candidate or for purposes of partisan political 2nd limitation
activity shall be subject to donor’s tax. Net gift all foreign countries x Phil tax
4. Donations between spouses - Every donation Total net gift
or grant of gratuitous advantage, direct or MCQ
indirect, between the spouses during the marriage 32. A, citizen and resident of the Philippines, made
shall be void, except moderate gifts which the donations on January 10, 2023, as follows:
spouses may give each other on the occasion of
any family rejoicing. Donation to B, a legitimate son, on account
of marriage, to be celebrated on February
The prohibition shall also apply to persons living 14, 2023, property in the United States (on
together as husband and wife without a valid which a U.S. donor’s tax of P50,000 was
marriage. paid), with a fair market value of P3,500,000
5. Other persons who cannot donate property to Donation to B, cash in the Philippines of 1,000,000
each other (Void donations)
a. Those made between persons who were guilty Donor’s tax credit for donor’s tax paid to the U.S.:
of adultery or concubinage at the time of A. P C. P45,000
donation. 198,000
b. Those made between persons found guilty of B. D. 50,000
the same criminal offense in consideration 225,000
thereof; and 33. Don made the following gifts:
c. Those made to a public officer or his wife, Gross gift Deductions Tax paid
descendants and ascendants, by reason of his Philippine P750,000 P250,000 -
office. s
 USA P300,000 - 25,000 C. If the donee is a non-individual, the tax shall be
UK P100,000 - 12,000 computed by using 30% rate even if the donation
Italy P500,000 150,000 10,000 is made in 2018.
D. The donor’s tax return shall be filed in triplicate by
The donor’s tax payable is:
the donor.
A. P35,600 C. P33,520
B. P30,800 D. P24,000 Surcharges (ad valorem penalty)
50% – False or fraudulent return is willfully filed.
Filing and payment
– Willful neglect to file the return on time.
1. Time of filing – within 30 days from date of gift 25% – Failure to file any return and pay the tax
2. Date of payment – at the time the return is filed. due thereon.
3. Place of filing – Authorized Agent Bank (AAB), – If the return is not filed with the proper
RDO, Collection Agent, or duly authorized internal revenue officer.
Treasurer of the City or Municipality where the – Failure to pay on time the deficiency tax
donor was domiciled at the time of gift. shown in the notice of assessment.
If there is no legal residence in the Philippines,
with the Office of the Commissioner or with the
Philippine Embassy or Consulate in the country Interest for failure to pay tax per return on time
where he is domiciled at the time of the transfer. Rate – 12% per annum, or such higher rate as may
be prescribed by rules and regulations, computed
Returns filed with the Philippine Embassy or
from the date prescribed for payment until the
consulate shall be paid thereat.
amount is fully paid.
4. VALIDATION OF TAX RETURN – Where the return MCQ
was filed with an AAB, the lower portion of the 37. On March 6, 2020, a Filipino citizen donated house
return must be duly machine validated and and lot with fair market value of P2,000,000 to his
stamped received by the AAB to serve as receipt child on account of marriage last January 1, 2020.
of payment. Gift tax return was filed and tax paid on July 5, 2020.
The machine validation shall reflect the amount The amount payable as of July 5, 2020 is:
paid, the date of payment and the transaction A. P134,391 C. P105,000
code and the stamp mark shall also show the B. P136,500 D. P135,427
name of the bank, branch code, teller’s code and
Documentary requirements
teller’s initial.
The following requirements must be submitted
The AAB shall also issue an official receipt or bank upon field of office audit of the tax case before the
debit advice or credit document, whichever is Tax Clearance Certificate/Certificate of Authorizing
applicable, as additional proof of payment. Registration can be released:
MCQ 1. Duly notarized Original Deed of Donation
34. One of the following statements is correct. The donor’s 2. Taxpayer Identification Number (TIN) of Donor
tax return: and Donee/s
A. Must be filed within thirty days after the end of the 3. Proof of claimed tax credit, if applicable
calendar year. 4. Duly notarized original Special Power of Attorney
B. Must be filed within thirty days from the physical (SPA) for the transacting party if the person
transfer of property. signing is not one of the parties to the Deed of
C. Must be filed within 30 days from the date of Donation.
notarization. 5. Validated return and Original Official
D. In the case of husband and wife making donations, Receipt/Deposit Slip as proof of payment; for no
one donor’s tax return shall be filed and signed by payment return, copy of Acknowledgment Receipt
either the husband or the wife. of return filed thru eBIR Forms.

35. One of the following statements is TRUE. Which is it? For Real Properties [Additional two (2) photocopies
If on any one date, there is a donation by one donor to of each document]
a corporation donee together with a donation to a 6. Certified true copy/ies of the Original/Transfer/
donee who is a blood relative: Condominium Certificate of Title of the donated
A. Two separate donor’s tax returns because the property, if applicable.
donor’s tax on the donation to a relative is at 7. Certified true copy/ies of the Tax Declaration at
graduated rates while the donor’s tax on the the time or nearest to the date of the transaction
donation to a corporation is at the flat rate of 30%. issued by the Local Assessor’s Office for land and
B. One donor’s tax return only, where the donor’s tax improvement, if applicable.
at graduated rates on the donation to a relative will 8. “Certificate of No Improvement” issued by the
be shown together with the donor’s tax at the flat Assessor’s Office, if applicable.
rate of 30% on the donation to a corporation, the
total being the donor’s tax to pay. For Personal properties, if any [Additional two (2)
C. If there were previous donations to corporation photocopies of each document]
during the year, the prior net gifts to the
corporation need not be shown anymore in the 9. Proof of valuation of shares of stocks at the time
donor’s tax return of donation, if applicable.
D. One donor’s tax return only showing both o For shares of stock listed/traded – Value at the
donations on the corporation and relative, the net time of donation or closing rate nearest to the
gift after P250,000 exemption being subjected to date of donation.
6% tax rate. o For shares of stock not listed/not traded –
36. Which is not true with regard to filing and payment of Audited Financial Statement of issuing
donor’s tax return? corporation nearest to the date of donation with
A. The attachments may be submitted upon field or computation of book value per share.
office audit of the tax case before the Tax o For club shares – Transaction value on the date
Clearance Certificate/Certificate Authorizing of donation as published in the newspaper
Registration can be released to the taxpayer. 10. Proof of valuation of other types of personal
B. Additional requirements may be requested for properties, if applicable
presentation during the audit of the tax case 11. Certificate of deposit/investment/indebtedness/
depending upon existing audit procedures. stocks for donated cash or securities
 12. Certificate of registration of motor vehicle, if any.
Other additional requirements, if applicable
Additional two (2) copies of the following documents:
1. Duly Notarized Original Special Power of Attorney
(SPA), if the person transacting/processing the
transfer is not a party to the transaction;
2. Certification from the Philippine Consulate if
document is executed abroad;
3. Location Plan/Vicinity map, if zonal value cannot
be readily determined from the documents
submitted;
4. Certificate of Exemption/BIR Ruling issued by the
Commissioner of Internal Revenue or his
authorized representative, if tax exempt;
5. Such other documents as may be required by
law/rulings/regulations/etc.

MCQ
38. On Dec 8, 2023 a resident alien donor made donations
of property in the Philippines to a relative, and of
property outside the Philippines to a friend. In taking a
credit for the foreign donor’s tax paid, the credit shall be
against the Philippine donor’s tax on the:
a. Donation to the relative.
b. Donation to the friend.
c. Donation to the relative plus that to the friend.
d. None of these.
39. One of the following statements is CORRECT. Which
is it? In the preparation of the donor’s tax return.
a. Donations to non-profit institutions are included in
the gross gifts and are shown as deductions from
the gross gifts.
b. Exempt donations are not shown anymore as gross
gifts and as deductions.
c. Spouses making donations of conjugal or
community property prepare one donor’s tax return.
d. Donor’s tax on donations to two different donees
are computed and shown in separate return.
40. One of the statements that follow is correct. Which is
it? A deed of donation was executed by G, resident of
Dagupan City, in favor of H, a resident of Baguio City.
H executed a deed of acceptance in Manila. The
donor’s tax return must be filed with the Bureau of
Internal Revenue Office:
a. In Dagupan City.
b. In Baguio City
c. In Manila
d. Either in Dagupan City, Manila or Baguio City, at the
option of the donor.

END