14 Flashcards
(20 cards)
It refers to the tax imposed on the transfer of property by gift, whether the transfer is direct or indirect.
Answer: Donor’s Tax
It is the basis for computing the donor’s tax, arrived at by deducting allowable exemptions or deductions from the gross gift.
Answer: Net Gift
The donor’s tax is classified as this type of tax because it is levied on the act of transferring rather than on the property itself.
Answer: Excise Tax
This is the percentage rate currently used in computing the donor’s tax under TRAIN Law.
Answer: 6%
This is the cumulative method applied in computing donor’s tax throughout a calendar year.
Answer: Calendar Year Basis
This term refers to the total value of the property given as a gift before any deductions or exemptions.
Answer: Gross Gift
This benefit accrues to the recipient of a gift and is used to measure the donor’s tax liability.
Answer: Net Economic Benefit
Under donor’s tax rules, this refers to the person receiving the gift.
Answer: Donee
Under donor’s tax rules, this refers to the person giving the gift.
Answer: Donor
These are amounts or conditions allowed by law to reduce the gross gift for tax purposes.
Answer: Exemptions or Deductions
True or False
Donor’s tax is levied only on direct transfers of property by gift.
Answer: FALSE
True or False
The donor’s tax is a tax on the property that is given as a gift.
Answer: FALSE
True or False
The donor’s tax applies whether the property transferred is real or personal, tangible or intangible.
Answer: TRUE
True or False
The net gift is determined by subtracting exemptions or deductions from the gross gift.
Answer: TRUE
True or False
The donor’s tax is computed based on the fair market value of the gift only.
Answer: FALSE
True or False
Only residents of the Philippines are subject to donor’s tax.
Answer: FALSE
True or False
Donor’s tax is computed for each gift transaction regardless of the calendar year.
Answer: FALSE
True or False
Transfers in trust are not subject to donor’s tax.
Answer: FALSE
True or False
The tax is based on the donor’s privilege to transfer property, not on the property itself.
Answer: TRUE
True or False
The donor’s tax rate is fixed at 6% under the TRAIN Law.
Answer: TRUE
