A donor files BIR Form No. 1800 within 30 days from the date the gift is made, paying a flat 6% tax on total gifts for that calendar year in excess of a ₱250,000 exemption. Filing and payment happen together, and an eCAR is still needed afterward before the property can be transferred to the donee's name.
A donor files BIR Form No. 1800 (Donor’s Tax Return) within 30 days from the date the gift is made or completed, paying tax on the total net gifts for that calendar year in excess of the ₱250,000 annual exemption at a flat rate of 6%. The return and payment are due at the same time, and there is no separate deadline for paying after filing.
When You Owe Donor's Tax
Under the TRAIN law (Republic Act No. 10963), donor’s tax is computed at a flat 6% on the total gifts a donor makes during a calendar year, in excess of a ₱250,000 exemption that applies per donor, per year — not per gift and not per donee. This replaced the older system of graduated rates that used to distinguish between gifts to relatives and gifts to strangers; under the current rate, the relationship between donor and donee no longer changes the tax rate itself, only certain exemptions discussed below.
Because the ₱250,000 exemption and the tax due are computed cumulatively over the calendar year, a donor who makes several gifts in the same year must add them together when figuring out how much of the total is taxable, even if each individual gift was filed and reported separately as it was made. Husband and wife are treated as separate and distinct taxpayers for donor’s tax purposes, each with their own ₱250,000 exemption — except that if what is donated is conjugal or community property and only one spouse signs the deed of donation, there is only one donor for tax purposes (without prejudice to the other spouse’s right to question the donation’s validity under the Family Code for having been made without the required consent).
Donor’s tax is not limited to outright gifts. Where property (other than real property subject to the 6% capital gains tax on sales) is transferred for less than its full and adequate consideration, the difference between the fair market value and what was actually paid is treated as a deemed gift and included in the donor’s taxable gifts for the year — unless the transfer was a bona fide, arm’s-length sale made in the ordinary course of business, with no donative intent involved.
Step by Step: Filing the Donor's Tax Return
- Step 1 — Confirm the gift is complete. The 30-day clock runs from the date the donation is made or completed — for real property, generally the date the deed of donation is executed, subject to whatever conditions the deed itself imposes on when the transfer takes effect.
- Step 2 — Gather the deed and supporting documents. At minimum this means the notarized Deed of Donation, the Tax Identification Numbers (TIN) of both donor and donee, and proof of any prior gifts already made within the same calendar year (needed to compute the cumulative exemption correctly).
- Step 3 — Secure a TIN if the donor or donee does not already have one. A donor or donee without an existing TIN registers using BIR Form No. 1904 as a one-time taxpayer before the donor’s tax return can be filed.
- Step 4 — Value the property donated. For real property, the same “whichever is higher” rule used for estate tax applies: the fair market value is whichever is higher between the BIR zonal value and the fair market value shown in the schedule of values of the provincial or city assessor, reckoned as of the date the donation is made — not the zonal value on the date of filing, which may have changed. For shares of stock and other property, valuation follows the specific rules for that type of asset.
- Step 5 — Compute the tax. Add the value of the current gift to any other gifts already made by the same donor earlier in the same calendar year, subtract the cumulative ₱250,000 exemption, and apply the 6% rate to the excess, crediting any donor’s tax already paid on the earlier gifts made that year.
- Step 6 — File BIR Form No. 1800 and pay. File the return, together with the required attachments, at the Revenue District Office that has jurisdiction over the donor’s place of residence, and pay the computed tax at the same time — filing and payment happen together, unlike estate tax, which allows extensions to pay in certain cases.
Documentary Requirements
Beyond the notarized Deed of Donation and the TINs of donor and donee, the documents typically required when property is involved include a certified true copy of the title (for real property) or the stock certificate (for shares), the latest tax declaration and a certification of the applicable zonal value for real property, and proof of any donor’s tax already paid on earlier gifts made within the same calendar year, since that is what allows the running total and the exemption to be applied correctly across multiple gifts.
The Notice of Donation Requirement for Gifts to Charities
A donor engaged in business who wants to claim full deduction for a donation made to a qualified, accredited donee institution — and who wants that gift excluded from donor’s tax — must give the RDO having jurisdiction over the donor’s place of business a Notice of Donation for every donation worth at least ₱50,000. This notice must be filed within 30 days after the donor receives the donee institution’s Certificate of Donation, which must be attached to it, and it must state that not more than 30% of the donation will be used by the accredited institution for administration purposes. Missing this notice can put the exemption at risk even where the underlying gift would otherwise have qualified.
Which Gifts Are Exempt
Two categories of gifts are exempt from donor’s tax regardless of amount: gifts made to or for the use of the National Government or any of its non-profit agencies or political subdivisions, and gifts to qualified educational, charitable, religious, cultural, or social welfare institutions, accredited non-government organizations, trusts, or research institutions or organizations — provided the donee is a non-stock entity that pays no dividends, is governed by uncompensated trustees, and devotes its income to the purposes stated in its charter, and provided not more than 30% of the gift is used for the donee’s administration costs. Gifts and contributions governed by election law, such as campaign contributions to a candidate, party, or coalition, are governed by that separate framework rather than the donor’s tax rules discussed here.
The eCAR: Why Filing Is Only Half the Job
Filing the return and paying the tax does not by itself transfer title. Just as with estate tax, a gift of real property, shares of stock, or other registrable property needs an electronic Certificate Authorizing Registration (eCAR) from BIR before the donee’s name can be entered on the title, stock ledger, or other registry of ownership. The eCAR is issued only after the donor’s tax return has been filed, the tax paid, and BIR has reviewed the supporting documents and valuation, so donors who need the transfer completed quickly should not treat the 30-day filing deadline as the finish line.
How This Differs From Filing an Estate Tax Return
Donor’s tax and estate tax share the same 6% rate and the same underlying valuation rule for real property, but the filing mechanics are not interchangeable. Estate tax allows a full year to file from the date of death, with the possibility of a further extension to file and, in certain cases, an extension of time to pay of up to five years for estates settled through the courts. Donor’s tax gives no such runway: the filing deadline is a flat 30 days from the date of the gift, filing and payment happen together, and there is no statutory installment scheme comparable to the one available to a settling estate. A family that is deciding between gifting property during a person’s lifetime or letting it pass through the estate at death should weigh this difference in timelines and flexibility together with the tax itself, since the compressed 30-day window for donor’s tax leaves far less room to gather documents and arrange payment than the one-year period given to an estate.
What Happens If You File Late
A donor’s tax return filed or paid after the 30-day deadline is subject to the same general late-filing consequences that apply across the Tax Code: a surcharge on the basic tax due, plus interest that continues to accrue until the tax is actually paid, in addition to any applicable compromise penalty. Because the 30-day window is measured from the date of the gift itself, and not from when the parties get around to preparing the paperwork, donors who wait to formalize a donation risk running past the deadline before the deed is even signed and notarized.
Frequently Asked Questions
What is the deadline to file a donor's tax return? Thirty days from the date the gift is made or completed, with the tax due paid at the same time the return is filed.
Is there a yearly exempt amount for donor's tax? Yes. The first ₱250,000 of a donor's total gifts within a calendar year is exempt, computed cumulatively across all gifts that donor made that year.
Are husband and wife treated as one donor or two for a joint gift? They are separate taxpayers, each with a ₱250,000 exemption, except that a gift of conjugal or community property signed by only one spouse is treated as having one donor for tax purposes.
Do I need to notify the BIR separately if I donate to a charity? Yes, if the donation is worth at least ₱50,000 and you want it excluded from donor's tax, a Notice of Donation must be filed within 30 days of receiving the donee institution's Certificate of Donation.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
Because the 30-day window runs from the date of the gift itself and not from when the paperwork gets finished, it pays to value the property and prepare the deed before the donation is finalized, not after.