Hong Life CalculatorsHow donor’s tax is calculated
- Add up all gifts made in the calendar year, including this one.
- Subtract ₱250,000 (the yearly exemption).
- Multiply by 6%.
- Subtract donor’s tax already paid on earlier gifts in the same year.
Example: a ₱1,000,000 gift with no earlier gifts → (₱1,000,000 − ₱250,000) × 6% = ₱45,000.
| Total gifts in the year | Donor’s tax |
|---|---|
| ₱250,000 | ₱0 |
| ₱500,000 | ₱15,000 |
| ₱1,000,000 | ₱45,000 |
| ₱2,000,000 | ₱105,000 |
| ₱5,000,000 | ₱285,000 |
FAQ
Is the ₱250,000 exemption per gift or per year?
Per calendar year. The computation is cumulative, so a second gift in the same year is taxed on the running total minus tax already paid.
When must donor’s tax be filed?
Within 30 days after the date the gift is made or completed, using BIR Form 1800.
Is the rate different for gifts to strangers?
Under the TRAIN Law donor’s tax is a single 6% rate on net gifts above ₱250,000 a year.
Sources (checked 10 November 2026): BIR Revenue Regulations No. 12-2018 (6% rate, ₱250,000 annual exemption, cumulative computation, 30-day filing). Estimate, not tax advice.