Professional Documents
Culture Documents
Is an act of liberality
Is a contract
Is a tax imposed on the exercise of the donors right during lifetime (Excise Tax)
REQUISITES
1. Capacity of the donor:
Capacity to contract
Capacity to dispose
2. Donative intent
Direct gift = intent is required
Indirect gift = intent is not required (ex. by way of sale)
3. Delivery
Perfected from the moment the donor knows of the acceptance by the
done. (FMV)
4. Acceptance
Must be made within the lifetime of the donor.
FORMALITIES
1. Donation of Movable Property
Oral or Writing
If it exceeds 5,000, donation must be in writing. Otherwise, it shall be
VOID.
2. Donation of Immovable Property
Must be in public document. Otherwise, VOID.
Acceptance may be made in the same deed of donation or in a
separate public document and done during the lifetime of the donor.
GROSS GIFTS
Resident or citizen = within and without
Nonresident alien = within
2. Renunciation of inheritance
By the surviving spouse of his/her share in the conjugal or community
after the dissolution of the marriage in favor of any persons.
General renunciation by an heir is not subject to donors tax unless
done in favor of identified heirs to the disadvantage of other heirs.
3. Condonation of Indebtedness
Condonation in favor of its shareholders is not subject to donors tax.
Guaranty is gratuitous unless stated otherwise. If guarantor is
reimbursed by principal debtor, it is not a gratuitous act.
6. Splitting of gifts
Applicable if the donor makes two or more donations during different
calendar years.
VOID DONATIONS
Between persons guilty of adultery at the time of donation.
Between persons guilty of a criminal offense.
Made to a public officer or his wife, descendants and ascendants, by
reason of his office.