Donor’s Tax

Donor’s Tax is a tax on a donation or gift, and is imposed on the gratuitous transfer of property between two or more
persons who are living at the time of the transfer. It shall apply whether the transfer is in trust or otherwise, whether
the gift is direct or indirect and whether the property is real or personal, tangible or intangible.

Effective January 1, 2018 and onwards (Republic Act (RA) No. 10963/TRAIN)

Rate - The donor’s tax for each calendar year shall be six percent (6%) computed on the basis of the total gifts in
excess of Two Hundred Fifty Thousand Pesos (P250,000) exempt gift made during the calendar year.

Notes:
1. When the gifts are made during the same calendar year but on different dates, the donor's tax shall be computed
based on the total net gifts during the year.
2. The relationship between the donor and the donee(s) shall not be considered. Republic Act No. 10963 (TRAIN Law)
does not distinguish donations made to relatives, or donations made to strangers.

Documentary Requirements
Mandatory Requirements [additional two (2) photocopies of each document]:

1. Duly Notarized Original Deed of Donation;

2. Taxpayer Identification Number (TIN) of Donor and Donee/s;
3. Proof of claimed tax credit, if applicable;
4. Validated return and Original Official Receipt/Deposit Slip as proof of payment; for no payment return, copy of
Acknowledgment Receipt of return filed thru eBlRForms;
5. Duly Notarized Original Special Power of Attorney (SPA) for the transacting party if the person signing is not one
of the parties to the Deed of Donation;

For Real Properties [additional two (2) photocopies of each document]:

6. Certified True Copy/ies of the Original/Transfer/Condominium Certificate/s of Title (front and back pages) of the
donated property, if applicable;
7. Certified True Copy/ies of the Tax Declaration at the time or nearest to the date of the transaction issued by the
Local Assessor’s Office for land and improvement, if applicable;
8. Certification of No Improvement issued by the Assessor’s Office, if applicable;
For Personal Properties [additional two (2) photocopies of each document]:
9. Proof of valuation of shares of stock at the time of donation, if applicable;
a. For shares of stocks not listed/not traded - Latest Audited Financial Statement of the issuing corporation with
computation of the book value per share
b. For shares of stocks listed/traded - Price index from the Philippine Stock Exchange (PSE)/latest Fair Market Value
(FMV) published in the newspaper at the time of transaction
c. For club shares - Price published in newspapers on the transaction date or nearest to the transaction date
10. Stock certificate;
11. Proof of valuation of other types of personal properties, if applicable;
12. Proof of claimed deductions, if applicable;
13. Certificate of deposit/investment/indebtedness/stocks for donated cash or securities;
14. Certificate of registration of motor vehicle, if any;

Other Additional Requirements, if applicable [additional two (2) photocopies of each document]:
· Duly Notarized Original Special Power of Attorney (SPA), if the person transacting/processing the transfer is not a
party to the transaction
· Certification from the Philippine Consulate if document is executed abroad
· Location Plan/Vicinity map issued by the Local Assessor’s Office if zonal value cannot be readily determined from
the documents submitted
· Certificate of Exemption/BIR Ruling issued by the Commissioner of Internal Revenue or his authorized
representative, if tax exempt
· Such other documents as may be required by law/rulings/regulations/etc.

Procedures

· Who Shall File

The Donor’s Tax Return (BIR Form No. 1800) shall be filed in triplicate by any person, natural or juridical, resident or
non-resident, who transfers or causes 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.

Taxpayers who are filing BIR Form no. 1800 are excluded in the mandatory coverage from using the eBlRForms
(Section 2 of RR No. 9-2016).

· When and Where to File and Pay

The Donor’s Tax Return (BIR Form No. 1800) shall be filed within thirty (30) days after the date the gift (donation) is
made.

The return shall be filed with any Authorized Agent Bank (AAB) of the Revenue District Office having jurisdiction over
the place of domicile of the donor at the time of the donation, or if there is no legal residence in the Philippines, with
the Office of the Commissioner of Internal Revenue, (Revenue District Office No. 39, South Quezon City). In case of gifts
made by a non-resident alien, the return may be filed with RDO No. 39, or with the Philippine Embassy or Consulate in
the country where he is domiciled at the time of donation.

A separate return shall be filed by each donor for each gift (donation) made on different dates during the year
reflecting therein any previous net gifts made in the same calendar year. Only one return shall be filed for several gifts
(donations) by a donor to the different donees on the same date.

If the gift (donation) involves conjugal/community property, each spouse shall file separate return corresponding to
his/her respective share in the conjugal/community property donated. This rule shall likewise apply in the case of co-
ownership over the property being donated.

When the return is filed with an AAB, taxpayer must accomplish and submit BIR-prescribed deposit slip, which the
bank teller shall machine validate as evidence that payment was received by the AAB. The AAB receiving the tax
return shall stamp mark the word “Received” on the return and also machine validate the return as proof of filing
the return and payment of the tax by the taxpayer, respectively. The machine validation shall reflect the date of
payment, amount paid and transactions code, the name of the bank, branch code, teller’s code and teller’s initial.
Bank debit memo number and date should be indicated in the return for taxpayers paying under the bank debit
system.

Payments may also be made thru the epayment channels of AABs thru either their online facility, credit/debit/prepaid
cards, and mobile payments.
For transactions covered by one (1) Deed of Sale/Exchange/Donation involving one (1) to three (3) properties, the
taxpayer can avail of the fast lane pursuant to Revenue Memorandum Circular (RMC) No. 43-2018, as amended by
RMC No. 107-2018. Payments amounting to twenty thousand pesos (P 20,000.00) and below shall be paid in cash
while payments above twenty thousand pesos (P 20,000.00) shall be made through Manager’s Check or Cashier’s
Check to the Revenue Collection Officer of the RDO concerned.

The time of filing and payment vary depending on the law applicable at the time of donation.