Documentary Requirements for Donor’s Tax


Donating property is easy enough. Especially if what you’re giving is personal property or small items. However, you should know that donations are subject to taxi.e. donor’s tax.

DONOR’S TAX is a tax on 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 as of January 1, 2018 and onwards, the donor’s tax for each calendar year shall be six percent (6%) computed on the basis of the total gifts in excess of PHP 250,000.00 exempt gift made during the calendar year. This means that if the value of the total gifts you have given during the year is less than PHP 250,000.00, it is totally exempt from donor’s tax.

But what if your donation is definitely more than PHP 250,000.00 in a given year? What then should you do? Well, then you have to process the donor’s tax with the Bureau of Internal Revenue (BIR). Below are the documents you need:

Mandatory Requirements:

  1. Duly notarised 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 through eBIRForms
  5. Duly Notarised 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

Additional Requirements for Real Properties:

  1. Certified true copy/ies of the Original/ Transfer / Condominium Certificate/s of Title (front and back pages) of the donated property, if applicable
  2. 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
  3. 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 improvement / building
  4. Certification of No Improvement issued by the Assessor’s Office, if applicable

Additional Requirements for Personal Properties:

  1. Proof of valuation of shares of stock at the time of donation, if applicable
  • For shares of stocks no listed/not traded – Latest Audited Financial Statement (AFS) of the issuing corporation with computation of the book value per share
  • For shares of stock listed/traded – Price index from the Philippine Stock Exchange (PSE) / latest Fair Market Value (FMV) published in the newspaper at the time of transaction
  • For club shares – Price published in newspapers on the transaction date or nearest to the transaction date
  1. Stock certificate
  2. Proof of valuation of other types of personal properties, if applicable
  3. Proof of claimed deductions, if applicable
  4. Certificate of deposit / investment / indebtedness / stocks for donated cash or securities
  5. Certificate of registration of motor vehicle, if any

Other requirements, if applicable:

  1. Duly notarised 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 issued by the Local Assessor’s Office 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 authorised representative, if tax exempt
  5. Such other documents as may be required by law / rulings / regulations / etc.

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