Professional Documents
Culture Documents
*Font in red are those marked as “xxx” in R.A. (A) In the Case of Gifts Made by a Resident. -
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(1) Gifts made to or for the use of the National
SEC. 98. Imposition of Tax. - Government or any entity created by any of its
(A) There shall be levied, assessed, collected and agencies which is not conducted for profit, or to
paid upon the transfer by any person, resident or any political subdivision of the said Government;
nonresident, of the property by gift, a tax, and
computed as provided in Section 99.
(2) Gifts in favor of an educational and/or
(B) The tax shall apply whether the transfer is in charitable, religious, cultural or social welfare
trust or otherwise, whether the gift is direct or corporation, institution, accredited nongovernment
indirect, and whether the property is real or organization, trust or philanthropic organization or
personal, tangible or intangible. research institution or organization:
SEC. 99. Rates of Tax Payable by Donor. - Provided, however, That not more than thirty
percent (30%) of said gifts shall be used by such
A) In General.— The tax for each calendar year donee for administration purposes. For the
shall be six percent (6%) computed on the basis of purpose of this exemption, a ‘non-profit
the total gifts in excess of Two hundred fifty educational and/or charitable corporation,
thousand pesos (₱250,000) exempt gift made institution, accredited nongovernment
during the calendar year. organization, trust or philanthropic organization
and/or research institution or organization’ is a
*No more provision on Tax Payable by Donor if school, college or university and/or charitable
Donee is a Stranger corporation, accredited nongovernment
organization, trust or philanthropic organization
(B) Any contribution in cash or in kind to any and/ or research institution or organization,
candidate, political party or coalition of parties for incorporated as a nonstock entity, paying no
campaign purposes shall be governed by the dividends, governed by trustees who receive no
Election Code, as amended. compensation, and devoting all its income,
whether students’ fees or gifts, donation, subsidies
SEC. 100. Transfer for Less Than Adequate and or other forms of philanthropy, to the
Full Consideration. - Where property, other than accomplishment and promotion of the purposes
real property referred to in Section 24(D), is enumerated in its Articles of Incorporation.
transferred for less than an adequate and full
consideration in money or money’s worth, then (3) Gifts in favor of an educational and/or
the amount by which the fair market value of the charitable, religious, cultural or social welfare
property exceeded the value of the consideration corporation, institution, accredited nongovernment
shall, for the purpose of the tax imposed by this organization, trust or philanthropic organization or
Chapter, be deemed a gift, and shall be included in research institution or organization: Provided,
computing the amount of gifts made during the however, That not more than thirty percent (30%)
calendar year: Provided, however, That a sale, of said gifts shall be used by such donee for
exchange, or other transfer of property made in administration purposes. For the purpose of the
the ordinary course of business (a transaction exemption, a 'non-profit educational and/or
which is a bona fide, at arm’s length, and free charitable corporation, institution, accredited
from any donative intent), will be considered as nongovernment organization, trust or
made for an adequate and full consideration in philanthropic organization and/or research