BIR Ruling No. 241-82

August 30, 1982 BIR RULING NO. 241-82 120 000-00 241-82 Mr. Alfonso E. Fucio 540 Lafayette Greenhills Mandaluyong, Metro Manila S i r : This refers to your letters dated February 9 and March 1, 1982 requesting resolution on the following queries: "1. Please inform me what particular section or sections cover the imposition of Donor's and Donee's taxes. "2. I have a son graduating this March 1982. I would like to donate to him properties (stock certificates) without paying donor's or donee's tax. What amount can I donate to him on an annual basis without paying donor's and donees taxes? "3. What is the maximum amount of properties can I donate to my son paying minimal amount of taxes?" In reply, please be informed as follows: 1. Pursuant to Presidential Decree No. 69 which took effect on January 1, 1973, the donor's and donee's taxes were integrated into a single donor's gift tax imposed in accordance with Sections 120 to 133 of the National Internal Revenue Code of 1977. 2. The tax payable by the donor for each calendar year shall be computed on the basis of the total net gifts made during the calendar year in accordance with the rates prescribed under Section 121 of the Tax Code, as amended. You shall be exempt from the donor's tax if your total net gifts during the year does not exceed One Thousand Pesos (P1,000.00). 3. The rates of tax payable by the donors depend on the amount of properties donated and the tax shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible. Very truly yours, TOMAS C. TOLEDO Acting Commissioner