The recent Taal Volcano eruption spurred once again the generosity of the Filipino spirit. Many Filipinos participated in countless relief efforts in various capacities, whether as volunteers or donors. Thus, it is good once again to be reminded of the benefits of giving back for tax purposes.
The 6-percent donor’s tax is generally imposed on the donor for total gifts in excess of P250,000 made during the calendar year. The same rate applies whether donations are made to strangers or to family members, such as siblings, spouses, ascendants, descendants or relatives within the fourth degree of consanguinity. The donor is required to file the donor’s tax return and pay the donor’s tax within 30 days from the date of donation.