CHAPTER 15 Flashcards
(20 cards)
T or F
Donations of property not within the Philippines by a resident alien is not subject to a Philippine donor’s tax.
FALSE
T or F
The property donated by a Filipino citizen that is located in another country may be subject to donor’s tax twice.
TRUE
T or F
Tax credit is allowed to nonresident alien on donation of property in a foreign country.
FALSE
T or F
Foreign donor’s tax credit is subject to limitations.
TRUE
T or F
Filing of donor’s tax return is not required for indirect donation.
FALSE
T or F
Donor’s tax is paid 30 days after the return is filed.
FALSE
T or F
The Commissioner may require other information in the donor’s tax return.
TRUE
T or F
The name of donee is not to be disclosed in the donor’s tax return for confidentiality.
FALSE
T or F
Donee-institution may use more than 30% of donation for administration purposes.
FALSE
T or F
To be exempt from donor’s tax on donation to qualified donee-institution, a donor engaged in business shall give a notice of donation on every donation worth at least P50,000.
TRUE
It refers to the right of a Filipino citizen or resident alien to deduct foreign donor’s tax paid from their Philippine donor’s tax liability.
Foreign Donor’s Tax Credit
The maximum amount of credit that can be claimed is limited to the lower between the actual foreign tax paid and this computed value.
Tax Credit Limit
This amount is deducted from the total donor’s tax due in the Philippines to arrive at the donor’s tax still payable.
Allowed Tax Credit
This is the formula used to compute the maximum tax credit per foreign country under Limitation (a).
(Net Gift in a Foreign Country / Total Net Gift) × Philippine Donor’s Tax
This is the overall limitation for all tax credits combined, when donations are made to more than one foreign country.
(Total Net Gifts Abroad / Total Net Gifts) × Philippine Donor’s Tax
If a Filipino citizen donates property located in Spain and the donor pays tax to Spain and the Philippines, this is applied to avoid double taxation.
Foreign Tax Credit
If a donor is this type of person, they are not allowed to claim foreign donor’s tax as credit in the Philippines.
Non-resident alien
Under the TRAIN law, this is the rate used to compute the donor’s tax on the net gifts after exemption.
6%
This amount is allowed as an exemption from the total donations before computing the Philippine donor’s tax.
₱250,000
The Philippine donor’s tax return must be filed within how many days from the date of donation?
30 days
