Practice question
In January 2026, a donor gives P200,000 to a nephew. In June, the same donor gives P300,000 to an unrelated friend. Assume both are completed cash gifts, no deductions or special exemptions, and no other gifts or credits. The donor claims a separate P250,000 allowance for each donee. What is the correct total donor's tax for the year?
- P15,000, because the donor's P500,000 annual gifts leave P250,000 taxable excess
- P0, because each donee receives a separate annual allowance
- P3,000, because only P50,000 of the second gift counts and the first is ignored
- P90,000, because every gift to an unrelated person is taxed at 30%
- P30,000, because the annual exempt amount is unavailable
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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