House approves bill exempting gifts worth P100k from donor's tax
MANILA, Philippines – The House of Representatives approved on 3rd and final reading a bill seeking to exempt gifts worth P100,000 and below from donor's tax.
Through a vote of 221-0-0, lawmakers approved House Bill (HB) Number 4903 on Monday, February 27. The bill will now be transferred to the Senate, where it will be going through another 3 readings.
The measure aims to amend the National Internal Revenue Code of 1997 so that those who will be receiving gifts worth P100,000 and below no longer need to pay donor's tax. (READ: #AskTheTaxWhiz: Is giving cash subject to donor's tax?)
HB 4903 also simplifies the donor's tax rate to 6% for gifts worth more than P100,000.
The measure sets the donor's tax rate to 6% from the current 30% for gifts donated by a stranger as well. HB 4903 defines a stranger as:
- Brother, sister, spouse, ancestor, and lineal descent
- Relative by consanguinity in the collateral line with the 4th degree of relationship
HB 4903 was authored by House ways and means committee chairperson Dakila Cua, ANGKLA Representative Jesulito Manalo, Surigao del Norte 2nd District Representative Robert Ace Barbers, Cebu 7th District Representative Peter John Calderon, and An Waray Representative Victoria Noel.
HB 4903 is the 3rd tax reform bill the House of Representatives approved on 3rd and final reading under the term of President Rodrigo Duterte.
Congressmen earlier gave their nod to HB 4814 and HB 4815, which aims to grant amnesty in the payment of estate taxes and to simplify the estate tax rate at 6%, respectively. – Rappler.com