House simplifies donor's tax rate | Inquirer News
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House simplifies donor’s tax rate

/ 03:57 PM February 28, 2017

tax

MANILA — The House of Representatives has approved on third and final reading a measure simplifying the donor’s tax by imposing a unitary rate of six percent on all gifts with a net value above P100,000.

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During its Monday evening plenary session, 221 lawmakers voted to approve House Bill No. 4903 filed by the ways and means committee chair, Rep. Dakila Carlo Cua (Quirino), and Reps. Jesulito Manalo (Angkla Party-list), Victoria Isabel Noel (An Waray Party-list) and Peter John Calderon (Cebu, 7th District). No votes were cast against the bill.

The bill aims to simplify the donor’s tax. The current rates for gifts above P100,000 vary at 2 percent, 4 percent, 6 percent, 8 percent, 10 percent, 12 percent, or 15 percent depending on the bracket of the gift value.

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Besides imposing a unitary six-percent rate for taxable gifts, the bill retains the tax exemption for gifts with a net value below P100,000 as currently provided by Section 99 of the National Internal Revenue Code.

In cases where the recipient is a “stranger,” the donor would only have to pay a six-percent tax under the bill, reduced from the current 30 percent.

The measure defines the “stranger” as someone who is not a sibling, spouse, ancestor, lineal descendant, or relative by consanguinity in the collateral line within the fourth degree of relationship.

The approved bill will be sent to the Senate for another round of deliberations. The Constitution provides for all tax measures to arise from the House of Representatives.  SFM/rga

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TAGS: amendment, An Waray Party List, Angkla party-list, Dakila Carlo Cua, donor’s tax, House Bill No. 4903, House of Representatives, House ways and means committee, Jesulito Manalo, Legislation, National Internal Revenue Code, Peter John Calderon, Tax, tax law, Victoria Isabel Noel
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