DONORS TAX

1.

2.

3.

4.

For donors tax purposes, who among the following

is/are stranger(s) to you?
I.
The grandson of the daughter of your grandson
II.
The grandfather of the mother of your
grandmother
III.
The brother of the father of your grandfather
IV.
The grandson of the sister of your mother
a. I and II
c. III only
b. III and IV
d. IV only
Statement 1: The gift is perfected from the moment of
the donor effects the delivery either actually or
constructively of the property donated.
Statement 2: Donors tax is a property tax imposed on
the property transferred by way of gift inter vivos.
a. True, True
c. False, True
b. True, False
d. False, False
Statement 1: For purpose of the donors tax, second
degree cousins are strangers to each other
Statement 2: Encumbrance on the property donated, if
assumed by the donor is deductible for donors tax
purposes.
a. True, True
c. False, True
b. True, False
d. False, False
Statement 1: Where real property is transferred during
lifetime for less than adequate and full consideration in
money or moneys worth, the amount by which the value
of the property exceeded the value of the consideration
shall for the purpose made of the donors tax, be
deemed a gift.
Statement 2: Gifts of conjugal property made by both
spouse shall be considered as having been made onehalf by the husband and the other half by the wife and is
taxable to each donor spouse.
a. True, True
c. False, True
b. True, False
d. False, False

a.
b.

True, True
True, False

c. False, True
d. False, False

8.

All of the following are exempt from gift tax under special
laws, except one:
a. Donation to the Integrated Bar of the Philippines
b. Donation to the Development Academy of the
Philippines
c. Donation to Philippine Institute of Certified Public
Accountants
d. Donation to International Rice Research Institute

9.

One of the following statements is false:

a. Contracts of donation between husband and wife
are void in all cases.
b. The donation by Chavit to President Aquino in view
of his public office is void.
c. Donations between persons guilty of adultery or
concubinage are void.
d. Donations to conceived or unborn children are valid.

10.

During the current year, Mr. and Mrs. Reyes,

nonresident citizen, donated the following:
September 25 To Bea, a legitimate child, on account of
marriage last month a conjugal property located in the
Philippines, FMV P400,000.
October 9 To Gale, a legitimate child, conjugal property
in the Philippines, FMV P100,000.
The gift tax payable on September 25 gift of the husband
is:
a. P 7,600
c. P 1,800
b. P 2,600
d. P 3,353

11. Using the data in number, 3, the gift tax payable on the
October 9 gift of the husband is:
a. P 9,600
c. P 1,800
b. P 5,907
d. P 3,600

5.

Using the preceding number, the acceptance of the done

may be made
a. In the same deed of donation
b. In a separate document
c. Either A or B
d. Neither A or B

6.

Statement 1: Dowries or gifts made on account of family

celebration, on or before its celebration, or within one
year thereafter, by parents to each of their legitimate,
recognized natural or adopted children, to the extent of
the first P 10,000 shall be exempt from donors tax.
Statement 2: Donations in favor of an educational
and/or charitable, religious, cultural or social welfare
corporation, institutions, accredited non-government
organization, trust or philanthropic organization or
research institution or organization provided that no
amount of said gifts shall be used by the done for
administration purposes shall be exempt from donors
tax.
a. True, True
c. False, True
b. True, False
d. False, False

12. The following property transfers/gifts were given by a

resident donor in 2009 at the given fair valuation:

A vehicle gifted to the Ramon Magsaysay

Foundation, P160,000

A dowry, made in cash, to her legally adopted child

who is to be married, P90,000

Baptismal presents to his godson, P15,000

A Toyota car, acquired for P175,000 with a book

value of P120,000, but fairly valued at P150,000
given to her sister for a consideration of P20,000

Mountain bike gifted to his nephew, P25,000

Cash gift to his step daughter in account of her

marriage, P45,000

Jewelrys gifted to his mother but subject to

revocation, P100,000

Old clothes donated to the victims of fire, P15,000

Old furniture sold for P50,000 to his neighbor, FMV

is P85,000
The taxable net gift to stranger is
a. P245,000
c. P235,000
b. P110,000
d. P155,000

7.

Statement 1: As a rule, donation between husband and

wife during the marriage is void.
Statement 2: Donation can be made to conceived or
unborn children.

13. Using the preceding information, the taxable net gift to

relatives is
a. P160,000
c. P235,000
b. P110,000
d. P155,000

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DONORS TAX

14. The husband and the wife gave the following gift of
conjugal property, January 20, 2010 Land valued at
P180,000. Donee is a brother of the wife and the gift is
on account of marriage of the brother held on January
10, 2008. The total donors tax due on the gift is
a. P 1,600
c. P28,600
b. P 27,000
d. P54,000
15. Donations of properties, with fair market values:
Land in Indonesia
P 1,000,000
Land and Building in the Philippines
1,500,000
Shares of stock of a domestic corporation
500,000
Shares of stock of a foreign corporation
400,000
Receivable from a friend (residing in the same
country as that of donor)
50,000
There was a transfer inter vivos (to take
Effect during the lifetime of the
transferor) of property in the country of
the transferor. Consideration received
P 90,000; Fair Market Value of the
property at the time of transfer was
200,000
Cancellation of indebtedness of a resident
of the country where the transferor
resides, as an act of liberality
20,000
Gross gift if the donor was a citizen or resident of the
Philippines?
a. P2,080,000
c. P3,580,000
b. P2,580,000
d. P3,510,000
16. Estate tax as distinguished from donors tax
a. Payment is made as the return is filed.
b. Notice is not needed.
c. There is optional valuation date.
d. Exemption per tax table is P200,000
17. Exempt from donors taxation are gifts made
a. For the use of the barangay
b. In consideration of marriage
c. To a school which is a stock corporation
d. To a for-profit government corporation
18. Which is not true about donation between spouses?
a. Husband and wife cannot donate any conjugal or
community property without the consent of the other
b. Husband and wife may make a joint donation of
conjugal or community property
c. In a joint donation of conjugal or community
property, each spouse shall be considered a
separate donor of his or her interest in the property
d. When a spouse makes moderate donations for
charity or on occasions of family rejoicing or family
distress, the consent of the other spouse is needed.
19. Statement 1: In order that the donation of an immovable
property may be valid, it must be made in public
instrument specifying therein the property donated.
Statement 2: General renunciation of the heir, including
the surviving spouse, of his or her share in the hereditary
estate left by the decedent is not subject to donors tax.
a. Both statements are false
b. 1st statement is false while 2nd statement is true
c. 1st statement is true while 2nd statement is false
d. Both statements are true

20. The following donations were made to a legitimate child

of a citizen donor:

Property in the Philippines

P210,000

Property outside the Philippines on

Account of marriage
300,000

Donors tax paid in foreign country

7,500
The donors tax due after tax credit for foreign donors tax
paid is
a. P14,000
c. P7,500
b. P 8,120
d. P6,500
21. Three of the following are declared exempt or excluded
from the donors tax. Which is the exception?
a. P150,000 given by a parent at the marriage
celebration of an illegitimate child
b. Donation to a Filipino by a British national of a
condominium in Hong Kong
c. P15,000 donation to a non-stock and non-profit
school, 25% of the said amount is used for
administrative purposes.
d. Donation by a resident American of P10,000 cash
to his daughter upon her marriage to a Filipino.
22. Donors tax shall be filed
a. Within 30 days after the gift is made
b. Within 6 months after the gift is made
c. Within 20 days after the gift is made
d. Within 30 days after the month when the gift is
made
23. Candy gave the following donations to her legitimate son
on account of marriage on December 31, 2011
Date
Property
Amount
1/30/2011
Cash
P 7,500
3/7/2011
Personal Property
25,000
5/25/2011
Cash
80,000
The amount of deduction on account of marriage on
March 7, 2011
a. None
c. P 7,500
b. P 2,500
d. P10,000
24. Using the preceding given, the donors tax due on the
May 25, 2011 donation
a. P2,050
c. P 50
b. P 250
d. Exempt
25. Gienneth Lou wrote to James on December 31, 2011
donating his car worth P850,000. The letter was received
by the latter on January 7, 2012 who accepted the
donation. The letter of acceptance was sent by James on
January 15, 2012 and was received by Gieneth Lou on
January 20, 2012. The donors was not paid until May
22, 2012. For donors tax purposes, the gross gift should
be based on the value of the property on
a. December 31, 2011
c. January 15, 2012
b. January 7, 2012
d. January 20, 2012
For items number 26-28, refer to the following
information:
Mr. and Mrs. Crisante gave the following donations in 2011:
Date
Donor
Property
Amount
Donee
1/5/11
Mr. Crisante Separate
P150,000
Lito,
legitimate son
on account of
marriage on
June 1, 2011

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DONORS TAX

4/6/11

Mr. Crisante

Separate

175,000
Gemma,
his mother
5/7/11
Mr. and Mrs. Conjugal
500,000 Timmy,
daughter,
on
account
of
marriage
on
June 1, 2010
9/9/11 Mrs. Crisante
Separate 200,000 Timmy,
daughter, on
account of
Marriage
26. The donors tax and payable due on the January 5, 2011
donation is
a. Exempt
c. P45,000
b. P 1,000
d. P 800
27. The donors tax due and payable of Mr. Crisante on May
7, 2011
a. P 10,700
c. P26, 500
b. P 3,600
d. P 25,700
28. The September 9, 2011 donations donors tax due is
a. P 2,000
c. P11,600
b. P 8,000
d. Exempt
29. At the testimonial dinner for new CPAs, Christian was
requested to sing the theme song of the movie Ghost.
Mae was so delighted that she feels she is falling in love
with Christian, so she decided to cancel Christians
indebtedness to her. As a result,
a. Christian
realized
a
taxable
income
as
compensation for services.
b. If Christian accepts the cancellation, he will pay
donors tax.
c. Christian received a gift from Mae and therefore not
part of his taxable income.
d. The amount of indebtedness cancelled is partly
taxable, and partly exempt.
30. For donors tax purposes, who of the following is not
considered as a stranger?
a. Son of a first cousin
b. Wife of the brother
c. First cousin
d. Father of the wife
31. Mr. Earl Montera, single, a Filipino citizen and a religious
leader, is a cancer patient with remaining 3 months to
live during the calendar year. His only asset is composed
of cash amounting to P 5,000,000. Prior to his death, he
asks you whether he would transfer his property through
donation (donors tax) or fact of death (estate tax) to his
brother.
You presented to him the donors tax rate applicable for
P 5,000,000 is 12% and the estate tax rate applicable for
P 5,000,000 is 15%. Accordingly, he noted that his
preference is to pay the tax through donation because it
has lesser transfer taxes. Is Mr. Montera correct?
a. Yes, because the tax savings would be P 150,000.
b. No, because whether donors tax or estate tax is to
be paid, the amount of related transfer tax is the
same.
c. Yes, because he is still alive.
d. No, because the estate tax is cheaper by P 49,000.
32. 1st Statement: Dowries made on account of family
celebration, on or before its celebration, or within one
year thereafter, by parent to each of their legitimate,

recognized natural or adopted children, to the extent of

the first P 10,000 shall be exempt from donors tax.
2nd Statement: Donation in favor of an educational
and/or charitable, religious, cultural or social welfare
corporation, institution, accredited non-government
organization, trust or philanthropic organization or
research institution or organization provided no amount
of said gifts shall be used by the donee for administration
purposes shall be exempt from donors tax.
a. True, True
c. False, True
b. True, False
d. False, False
33. 1st statement: Dowries made by non-resident alien
parents to their children before marriage are exempt
from gift tax up to P 10,000.
2nd statement: Donors can always claim a tax credit for
donors taxes paid to a foreign country.
a.

True, True

c. False, True

b.

False, False

d. True, False

For items 28 31, refer to the following information:

On February 25, 2012, Mr. and Mrs. Bayabas donated their
conjugal land worth P500, 000 to their three sons, but on
account of marriage to one of them who got married 5
months ago. On June 9, 2012, they also donated to the child
of Mrs. Bayabas by first marriage, jewelry worth P75, 000 on
account of marriage more than a month after the donation.
Finally on December 25, 2012, they donated to the nephew
of Mr. Bayabas a building worth P750, 000, 40% of which
was co- owned by their Kumpare who agreed to the donation
and executed the necessary documents donating his share.
34. The donors taxes due on the February 25, 2012
donation should be:
a.

P 14, 000 for Mr. & Mrs.

b.

P 3, 600 each for Mr. & Mrs.

c.

P 4, 000 each for Mr. & Mrs.

d.

P 5, 750 each for Mr. & Mrs.

35. The donors tax due on the June 9, 2012 donation is:
a.

Mr. 0; Mrs. P1, 875

b.

Mr. 11, 250; Mrs. P4, 700

c.

Mr. 11, 250; Mrs. P1, 100

d.

Mr. 11, 250; Mrs. P1, 875

36. The donors tax due on the December 25, 2012 for Mr. &
Mrs. are:
a.

Mr. 9, 875; Mrs. P13, 500

b.

Mr. 67, 500; Mrs. P67, 500

c.

Mr. 9, 000; Mrs. P13, 500

d.

Mr. 9, 000; Mrs. P67, 500

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DONORS TAX

37. The donors tax due on the December 25, 2012 for their
Kumpare is:
a.

P 90, 000

c. P 0

b.

P 6, 000

d. P 30, 000

38. A donor gave the following donations in year 2012:

January 24 -Land located in the Philippines valued at P
2,000,000 to her uncle subject to the condition that
her uncle will pay the donors tax due and to
assume the mortgage to which he agreed to pay the
mortgage amounting to P 500,000.
November 30- Building in US valued at P 4,500,000 to
her
sister. Donors tax paid in US was P 400,000.

43. The donation of a movable property may be made

a. Orally
c. Either A or B
b. In writing
d. Neither A or B
44. Using the preceding number, the donation and
acceptance should be in writing if the value of the
property donated is
a. Less than P 5,000 c. P 5,000 or more
b. P 5,000 or less d. More than P 5,000
45. A donation which takes effect upon the death of the
donor.
a. Donation mortis causa
b. Partakes of the nature of a testamentary disposition
c. Shall be governed by the law on succession
d. All of the above.

The donors tax due on January 24 was

a. P 84,000
c. P 92,000
b. P 450,000
c. P 480,000

46. The donation of an immovable property shall be made

a. In writing
c. Either A or B
b. In public instrument d. Orally

39. The donors tax due and payable on the November 30

donation in number 11 amounted to
a. P 131,000
c. P 524,00
b. P 47,000
d. P 124,000

47. A donor gave the following donations in year 2012 Jan.

24- Land located in the Philippines valued at P2,000,000
to her uncle subject to the condition that uncle will pay
the donors tax due and mortgage to which she agreed
to pay the mortgage amounting to P500,000. Nov.30Building in US valued at P4,500,000 to her sister.
Donors tax paid in US was P400,000. The donors tax
on the gift on Jan. 24 is:

40. The spouses Helena and Frederico wanted to donate a

parcel of Land to their son Gerrick who is getting married
in December, 2011. The parcel of land has a zonal
valuation of P 420,000. What is the most efficient mode
of donating the property?
a. The spouses should first donate in 2011 a portion of
the property valued at P 20,000 then spread the P
400,000 equally for 2012, 2013, 2014 and 2015.
b. Spread the donation over a period of 5 years by the
spouses donating P 100,000 each year from 2011 to
2015.
c. The spouses should each donate a P 110,000
portion of the value of the property in 2011 then
each should donate P 100,000 in 2012.
d. The spouses should each donate P 100,000 portion
value of the property in 2011, and another P
100,000 each in 2012. Then, in 2013, Helena should
donate the remaining P 20,000
41. Matubo Corp. donated P 100,000 for the purpose of
cementing a barangay road where its factory is located.
Statement 1: The donation is exempt from donors tax.
Statement 2: The corporation may claim a full deduction
for income tax purposes.
a. Both statements are incorrect.
b. Both statements are correct.
c. Only Statement 1 is correct.
d. Only Statement 2 is correct.

42. Statement 1: If the value of the movable property

donated is P 5,000 or more the donation and the
acceptance shall be made in writing, otherwise, the
donation shall be void.
Statement 2: Regardless of the value of the immovable
property donated, the donation and acceptance shall be
made in writing, otherwise, the donation shall be void.
a. True, True
c. False, True
b. True, False
d. False, False

a.

P 84,000

b.

P 92,000

c. P 450,000
d. P 480,000

48. The donors tax due on the Nov. 30 donation is:

a.

P 131,000

c. P47,000

b.

P 524,000

d. P124,000

PROBLEMS
Problem1. During the calendar year, Mr. Masagana paid a
total donors tax amounting to P38,000 to his legitimate
children on account of marriage. On his first donation during
the year, he paid a donors tax amounting to P13,600.
a. The amount of gross gift made on the first donation
_________________
b. The amount of gross gift made on the second donation
_________________
Problem 2. Mr. Haiko Kuri, a Malaysian residing in Cebu,
made the following gifts for the year:

Property located in Malaysia donated to a Filipino

relative, P1,000,000

Property located in the Philippines donated to Nigerian

friend, P2,000,000
Compute the donors tax due and payable to Philippine
government if the amount of donors tax paid to Malaysian
government is P 70,000. ____________________

Problem 3. Mikaela made a donation of property with a FMV

of P1,000,000 to his legitimate daughter, Gina and Jano on

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DONORS TAX

December 25, 2010 on account of Ginas marriage to Jano to

be celebrated on February 14, 2012. Mikaela filed the donors
tax return on February 28, 2011.
a. The donors tax due for gift made to Gina.
________________
b. The donors tax due for gift made to Jano
________________
c. The total donors tax due and payable on February 28,
2011. _________________
Problem 4. S, made the following donations in 2014:
a. February 26: To T, a legitimate son on account of Ts
graduation, P 150,000.

b.

April 26:
To U, an acknowledged natural
child on account of Us forthcoming marriage on January
14, 2015, P 7,000.
c. May 26:
To V, a legitimate daughter on
account of Vs marriage celebrated on June 14, 2013, P
8,000.
d. July 26:
To T, on account of Ts graduation
on January 14, 2014, P 100,000.
e. October 26:
To U, additional gift on account of
Us marriage on January 14, 2015, P 93,000.
f. December 26:
To V, additional gift on account of
Vs marriage on June 14, 2013, P 92,000.
Determine the donors tax due on each donation.

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