Gift Tax?

[sonjack2847]

57 minutes ago, Tommy T. said:

Small point, Sonjack... Foreigners cannot buy or own land here...

Their name why would I be owning it? So I didn`t buy 3 lots for my wife, of course you can buy land you just cannot own it under normal circumstances.

 

Edited March 3, 2021 by sonjack2847

[LawnMower]

On 3/3/2021 at 2:21 AM, Freebie said:

Never a truer word spoken Snowy. The " moment " its relaised someone has some pera, then the reasons for borrowing, without any intention will come out..

Loan for underperforming sari sari store / Motorbike repair/ buying pigs for a business idea / caribao replacement / lechon for celebrating new found wealth / priest wanting a donation kids need tablets for schooling and they must also be suitable  for gaming /new phone to make better tiktok videos... etcetc... Im thankfully removed from these parts of life here,  but I know enough kind folks  that have felt pressured to provide money that was never returned and sadly.. for which a thankyou wasnt received either.

Here they have a different language: Foreigner = wealthy; Loan = gift; Repayment = never; Devious = devious.

[Jollygoodfellow]

5 minutes ago, LawnMower said:

Here they have a different language: Foreigner = wealthy; Loan = gift; Repayment = never; Devious = devious.

You seem to really like it here as I noticed since approving your posts. 

[LawnMower]

6 minutes ago, Jollygoodfellow said:

You seem to really like it here as I noticed since approving your posts. 

Yes I do. I don't like modern life and so enjoy being in the 1850s. I also hate bureaucracy and so this place suits me very well. And I call a spade a spade unless it is called a shovel as I never know the difference. Thank you for moderating my comments and may there be many more to come. :)

[LawnMower]

On 3/1/2021 at 3:14 PM, Bringer said:

Hello,

I have 2 sisters who have been friends of mine for years.

I am not getting any younger, and I am afraid if I put them in my will, there may not be getting the money, for whatever reasons.

So I thought, maybe I give them now what I would allot in my will.

My question is: If I give them each around 300.000 PHP by way of transfer to their account via TransferWise, would they have to pay any gift or other tax on it?

Do you visit the country and could collect the money yourself from WU or the like and then give it to your sisters in cash? Btw, if you do make such gifts and tax is payable (with you being the one has to pay it under Philippine tax law) then how do they get the tax from you in another country? Tax authorities have enough problems collecting taxes in their own countries so how do they get 2000 pesos from someone living maybe 6000 mile away?

And on the subject of taxes (from the BIR website):

"Capital Gains Tax is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines ....  ". Well, it's not the way you do it in the Philippines Mr Taxman - a gain is the difference between purchase price and selling price and is not a tax on the whole selling price.  Gee-whizz .... they don't even get that???

 

 

Edited October 23, 2021 by LawnMower
Improved

[hk blues]

15 hours ago, LawnMower said:

Do you visit the country and could collect the money yourself from WU or the like and then give it to your sisters in cash? Btw, if you do make such gifts and tax is payable (with you being the one has to pay it under Philippine tax law) then how do they get the tax from you in another country? Tax authorities have enough problems collecting taxes in their own countries so how do they get 2000 pesos from someone living maybe 6000 mile away?

And on the subject of taxes (from the BIR website):

"Capital Gains Tax is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines ....  ". Well, it's not the way you do it in the Philippines Mr Taxman - a gain is the difference between purchase price and selling price and is not a tax on the whole selling price.  Gee-whizz .... they don't even get that???

 

 

Genuine question - do they actually calculate capital gains tax on the total asset sale price rather than the gain? 

[Mike J]

1 hour ago, hk blues said:

Genuine question - do they actually calculate capital gains tax on the total asset sale price rather than the gain? 

Called capital gains tax but is, in reality, a sales tax.  Rate is six percent of the sale price.  

https://www.bir.gov.ph/index.php/tax-information/capital-gains-tax.html

Mandatory Requirements:

TIN of Seller/s and Buyer/s ;(One (1) original copy for presentation only)
Notarized Deed of Absolute Sale/ Deed of Transfer but only photocopied documents shall be retained by BIR; (One (1) original copy and two (2) photocopies)
Certified True Copy/ies of the Tax Declaration at the time or nearest to the date of the transaction issued by the Local Assessor’s Office for land and improvement; (One (1) original copy and two (2) photocopies)
Certified True Copy/ies of Original/ Transfer/ Condominium Certificate/s of Title (OCT/TCT/CCT); (One (1) original copy and two (2) photocopies)
Duly notarized Special Power of Attorney (SPA) from the transacting party/ies if the person signing is not one of the parties to the Deed of Transfer; (One (1) original copy and two (2) photocopies)
Sworn Declaration of No Improvement by at least one (1) of the transferees or Certificate of No Improvement issued by the Assessor’s Office, if applicable; (One (1) original copy and two (2) photocopies)
Official Receipt/Deposit Slip and duly validated return as proofs of payment of taxes; (One (1) original copy and two (2) photocopies)
Secretary’s Certificate or Board Resolution, approving the sale/transfer of the real property and indicating the name and position of the authorized signatory to the Deed of Sale/Assignment, if the seller/transferor is a corporation. (One (1) original copy and two (2) photocopies)
Other Additional Requirements, if applicable:

Special Power of Attorney (SPA), if the person transacting/processing the transfer is not a party to the transaction; (One (1) original copy and two (2) photocopies)
Certification from the Philippine Consulate or Hague Apostille Convention (if executed abroad); (One (1) original copy and two (2) photocopies)
Location Plan/Vicinity map if zonal value cannot be readily determined from the documents submitted; (One (1) original copy and two (2) photocopies)
Certificate of Exemption/BIR Ruling issued by the Commissioner of Internal Revenue or his authorized representative, if tax exempt; (One (1) original copy and two (2) photocopies)
Such other documents as may be required by law/rulings/regulations/etc. (One (1) original copy and two (2) photocopies)
For Antedated Sales

Certified True Copy of Deed of Sale / Assignment / Exchange issued by the Clerk of Court of City/ Municipality or Regional Trial Court (RTC) or the Office of the Executive Judge of the City/Municipality where the Notary Public is registered or certification of notarization from the National Archives Office. (One (1) original copy and two (2) photocopies)
Processing and Issuance of Electronic Certificate Authorizing Registration (eCAR) for Sale of Real Property

(Where Tax Paid is Based on the Approved ONETT Computation Sheet)

Mandatory Requirements for Simple Transactions:

Tax Returns filed with proof of payment [Revenue Official Receipt or Duly Validated Bank Deposit Slip with Certification from the Authorized Agent Bank (AAB) which received the tax payment] or Certificate of Tax Exemption; (One (1) original copy and two (2) photocopies)
ONETT Computation Sheet of Tax Due duly approved by the authorized Revenue Officer; (One (1) original copy and two (2) photocopies)
Any of the following applicable document if the person presenting is not among the parties to the transaction: (One (1) original copy and two (2) photocopies)
Notarized Special Power of Attorney;
Secretary's Certificate or Board Resolution;
Certification from the Philippine Consulate or Hague Apostille Convention (if executed abroad).
Procedures

Who shall file
The Capital Gains Tax Return (BIR Form No. 1706) shall be filed in triplicate copies by the Seller/Transferor who are natural or juridical whether resident or non-resident, including Estates and Trusts, who sell, exchange, or dispose of a real property located in the Philippines classified as capital asset as defined under Sec. 39 (A) (1) of RA No. 8424. The term “sale” includes pacto de retro sale and other forms of conditional sales. The transaction may be taxable or exempt.

Taxpayers who are filing BIR Form No. 1706 are excluded in the mandatory coverage from using the eBIRForms (Section 2 of RR No. 9-2016)

When and Where to File and Pay
The Capital Gains Tax Return (BIR Form No. 1706) shall be filed and paid within thirty (30) days following the sale, exchange or disposition of real property, with any Authorized Agent Bank (AAB) or Revenue Collection Officer (RCO) of the Revenue District Office (RDO) having jurisdiction over the place where the property being transferred is located.

When the return is filed with an AAB, taxpayer must accomplish and submit BIR-prescribed deposit slip, which the bank teller shall machine validate as evidence that payment was received by the AAB. The AAB receiving the tax return shall stamp mark the word “Received” on the return and also machine validate the return as proof of filing the return and payment of the tax by the taxpayer, respectively. The machine validation shall reflect the date of payment, amount paid and transactions code, the name of the bank, branch code, teller’s code and teller’s initial. Bank debit memo number and date should be indicated in the return for taxpayers paying under the bank debit system.

Filing and payment may also be made using the electronic filing and payment facilities of the BIR (i.e., EFPS/eBIRForms and G-cash, credit, debit card/prepaid card)

For transactions covered by one (1) Deed of Sale/Exchange/Donation involving one (1) to three (3) properties, the taxpayer can avail of the ‘fast lane’ pursuant to Revenue Memorandum Circular (RMC) No. 43-2018, as amended by RMC No. 107-2018. Payments amounting to twenty thousand pesos (P 20,000.00) and below shall be paid in cash while payments above twenty thousand pesos (P 20,000.00) shall be made through Manager’s Check or Cashier’s Check to the RCO of the RDO having jurisdiction over the place where the property being transferred is located.

Tax Rate

For real property - 6%.