CHAPTER 15 IDENTIFICATION Flashcards
(10 cards)
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.
Answer: 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.
Answer: 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.
Answer: Allowed Tax Credit
This is the formula used to compute the maximum tax credit per foreign country under Limitation (a).
Answer:(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.
Answer:(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.
Answer: 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.
Answer: Non-resident alien
Under the TRAIN law, this is the rate used to compute the donor’s tax on the net gifts after exemption.
Answer: 6%
This amount is allowed as an exemption from the total donations before computing the Philippine donor’s tax.
Answer: ₱250,000
The Philippine donor’s tax return must be filed within how many days from the date of donation?
Answer: 30 days
