Practice question
A donor's only 2026 completed cash gift is P1,250,000 to an unrelated friend. No deductions, special exemptions, or credits apply. An adviser uses a 30% stranger rate solely because the recipient is unrelated. Which is correct under amended Section 99(A)?
- P375,000 under the adviser's method
- P60,000 under the general 6% rate on P1 million excess
- P0 because every friendly gift is exempt
- P75,000 because the annual exempt amount never applies to unrelated recipients
- P250,000 because the exempt amount becomes the tax
Legal references
- NIRC Section 99(A), as amended by RA 10963 Section 28; https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html
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