Donor's Tax Calculator
Calculate donor's tax on gifts and donations. Under TRAIN Law: flat 6% on cumulative gifts exceeding ₱250,000 per calendar year, regardless of donor-donee relationship. BIR-compliant 2026 rates.
Last Updated: June 13, 2026
Calculate Your Tax
How It Works
The Donor's Tax Calculator helps individuals and entities in the Philippines calculate the tax liability on gifts and donations they make during a calendar year. Under the TRAIN Law (Tax Reform for Acceleration and Inclusion), donor's tax is a flat 6% levy on the aggregate value of gifts exceeding ₱250,000 in a single calendar year, applied uniformly regardless of the relationship between donor and donee.
This calculator is essential for:
- Individuals making substantial gifts to family, friends, or charitable organizations
- Business owners transferring assets or capital to related parties
- Estate planners structuring lifetime gifts to minimize transfer taxes
- Non-residents and foreign nationals making donations in the Philippines
- Compliance officers ensuring timely filing of donor's tax returns (BIR Form 1800)
How This Calculator Works
The calculator follows the statutory framework under the National Internal Revenue Code (NIRC) as amended by the TRAIN Law:
- Identify the donor: The person or entity making the gift (individual, corporation, partnership, or estate).
- Aggregate gifts in the calendar year: Sum all gifts made from January 1 to December 31, including cash, real property, personal property, and intangible assets.
- Apply the annual exemption: Deduct ₱250,000 from the total gifts. Only amounts exceeding this threshold are taxable.
- Calculate tax at 6% flat rate: Multiply the taxable gifts (amount over ₱250,000) by 6%.
- Determine filing deadline: The donor's tax return (BIR Form 1800) must be filed and the tax paid within 30 days after the date the gift is made (NIRC §103(B)). A separate return is filed for each gift made on a different date.
Key Formula:
Donor's Tax = (Total Gifts − ₱250,000) × 6%
Underlying Tax Rules
Legal Basis:
- NIRC Section 99 (as amended by RA 10963 — TRAIN Law): Imposes a flat 6% tax computed on total gifts made during the calendar year in excess of the ₱250,000 annual exemption per donor.
- NIRC Section 100: Treats a transfer of property for less than adequate and full consideration in money or money's worth as a gift (the deemed-gift rule).
- NIRC Section 101: Lists the exempt gifts, including gifts to the National Government and to accredited charitable, religious, educational, cultural, and social-welfare institutions.
- BIR Revenue Regulations No. 12-2018: Consolidated regulations implementing the estate and donor's tax provisions under the TRAIN Law.
- BIR Form 1800 (Donor's Tax Return): Required filing document; must be filed and the tax paid within 30 days after the date the gift is made.
Scope of Taxable Gifts:
- Cash transfers
- Real property (land, buildings, improvements)
- Personal property (vehicles, jewelry, equipment)
- Securities and intangible assets
- Forgiveness of debt (treated as a gift of the forgiven amount)
- Transfers to spouses, children, parents, or unrelated parties — all taxed uniformly at 6%
Exemptions and Special Cases:
- Gifts to the national government, provinces, cities, municipalities, and barangays are exempt.
- Gifts to charitable, religious, educational, and scientific institutions recognized by the BIR may qualify for exemption under specific conditions.
- Gifts between spouses are NOT exempt from donor's tax; in fact, under Family Code Article 87 a donation between spouses during the marriage is generally void, except moderate gifts on a family occasion.
- The ₱250,000 annual exemption applies per donor per calendar year, not per donee.
Tips for Accurate Results
Common Input Scenarios:
- Single large gift: If you gift ₱500,000 to your child, the taxable amount is ₱250,000 (₱500,000 − ₱250,000), resulting in ₱15,000 in donor's tax.
- Multiple gifts in one year: Aggregate all gifts made in the calendar year. If you gift ₱150,000 in January and ₱200,000 in June, total gifts = ₱350,000; taxable = ₱100,000; tax = ₱6,000.
- Gifts to multiple donees: The exemption is per donor, not per donee. Gifts to your spouse, children, and friends all count toward the ₱250,000 threshold.
- Property transfers at below-market value: The difference between fair market value and the amount received is treated as a gift and is subject to donor's tax.
Edge Cases and Considerations:
- Gifts by non-residents: Non-resident aliens and foreign corporations making gifts of Philippine property are subject to donor's tax.
- Gifts from estates: If an estate makes gifts during administration, the executor must file a donor's tax return.
- Timing of gifts: Gifts made on December 31 are included in that calendar year's aggregate; gifts made on January 1 start a new year's exemption.
- Valuation of non-cash gifts: Use fair market value as of the date of the gift. For real property, the BIR may require an appraisal or use the zonal value.
- Installment gifts: If you commit to gift ₱500,000 over five years, each annual installment is aggregated separately; only the portion exceeding ₱250,000 in any given year is taxed.
Filing and Payment:
- File BIR Form 1800 within 30 days after the date the gift is made.
- Pay the tax due at the same time as filing the return.
- Late filing incurs surcharges (25%) and interest (12% per annum).
- Keep supporting documents: deeds of donation, bank statements, property valuations, and proof of payment.
Tax Optimization Tips
Spread gifts across multiple calendar years
By timing gifts strategically, you can utilize the ₱250,000 exemption in each calendar year. For example, instead of gifting ₱500,000 in one year (tax = ₱15,000), gift ₱250,000 in December 2024 and ₱250,000 in January 2025 (tax = ₱0). The ₱250,000 annual exemption resets each calendar year under NIRC §99. Savings: ₱15,000 per ₱500,000 transferred.
Gift to exempt donees
Gifts to the National Government, provinces, cities, municipalities, and barangays, and gifts to accredited charitable, religious, educational, cultural, and social-welfare institutions (subject to the rule that not more than 30% of the gift is used for administration), are exempt under NIRC §101. Directing gifts to these qualified entities eliminates the 6% tax entirely. Note: do not treat gifts to a spouse as exempt — they are not, and under Family Code Article 87 a donation between spouses during the marriage is generally void. Potential savings: 6% of the gift amount.
Use the annual exemption efficiently
The ₱250,000 exemption applies per donor per calendar year, not per donee. You can gift ₱250,000 to multiple people (spouse, children, friends) without incurring tax, as long as the aggregate does not exceed ₱250,000. Plan your giving to maximize this exemption. Example: Gift ₱100,000 to your child and ₱150,000 to your parent in the same year (total = ₱250,000, tax = ₱0).
Document fair market value for non-cash gifts
For gifts of real property, securities, or other non-cash assets, the BIR may challenge the valuation if it appears artificially low. Obtain independent appraisals and keep detailed documentation to support the fair market value claimed. Undervaluing gifts can trigger assessments, penalties, and interest. Proper documentation ensures compliance and avoids costly disputes.
File timely to avoid surcharges and interest
The donor's tax return (BIR Form 1800) must be filed and the tax paid within 30 days after the date the gift is made (NIRC §103(B)). Late filing incurs a 25% surcharge plus 12% annual interest on unpaid tax. For a ₱12,000 tax liability, late payment could cost an additional ₱3,000+ in penalties. Timely filing preserves cash flow and maintains compliance. Legal basis: NIRC §248 (surcharge) and §249 (interest).
Frequently Asked Questions
Donor's tax applies to gifts made <strong>during the donor's lifetime</strong> and is a flat 6% on gifts exceeding ₱250,000 per calendar year. Estate tax applies to the <strong>transfer of property at death</strong> and is a flat 6% on the net estate exceeding ₱5,000,000. Both are transfer taxes, but they apply at different times and have different exemption thresholds. Lifetime gifts can help reduce the taxable estate, making strategic gifting an important estate planning tool.
Yes. The ₱250,000 annual exemption applies per donor per calendar year (January 1 to December 31). On January 1 of the following year, the exemption resets. For example, if you gift ₱250,000 in December 2024, you can gift another ₱250,000 in January 2025 without incurring donor's tax. However, gifts made in the same calendar year are aggregated; if you gift ₱200,000 in January and ₱100,000 in June of the same year, the total is ₱300,000, and ₱50,000 is taxable.
No. There is no spousal exemption in the donor's tax law. More importantly, under <strong>Article 87 of the Family Code (E.O. 209)</strong>, every donation between spouses during the marriage is <strong>void</strong>, except moderate gifts given on the occasion of a family rejoicing (such as a birthday or anniversary). Because a donation between spouses is generally not even legally valid, it cannot be used as a tax-saving transfer. NIRC §101 lists only specific exempt gifts (for example, gifts to the National Government and to accredited charitable, religious, educational, cultural, and social-welfare institutions) and does not exempt gifts to a spouse. Do not rely on spousal gifting to reduce donor's tax.
The difference between the fair market value and the amount you receive is treated as a gift and is subject to donor's tax. For example, if you sell real property worth ₱1,000,000 to your child for ₱500,000, the ₱500,000 difference is a taxable gift. The BIR may challenge valuations that appear artificially low, so obtain independent appraisals and document the fair market value as of the date of the gift.
No. If your total gifts in a calendar year do not exceed ₱250,000, you are not required to file BIR Form 1800 or pay donor's tax. However, if you make additional gifts later in the year that push the aggregate above ₱250,000, you must file and pay tax on the excess. It is prudent to track all gifts throughout the year to ensure compliance.
The donor's tax return (BIR Form 1800) must be filed and the tax paid <strong>within 30 days after the date the gift is made</strong>, under NIRC §103(B). For example, a gift made on June 15 is due on July 15. A separate return is filed for each gift made on a different date. There is no end-of-month rule and no April 15 annual deadline for donor's tax. Late filing incurs a 25% surcharge plus 12% annual interest on the unpaid tax.
Gifts to charitable, religious, educational, and scientific institutions are exempt <strong>only if the organization is registered with the BIR</strong> and meets the criteria under NIRC §101(c). You must verify the donee's tax-exempt status before claiming the exemption. Gifts to unregistered or non-qualifying organizations are subject to the 6% donor's tax. Always request a tax exemption certificate from the organization.
Fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under pressure to buy or sell. The BIR may use the zonal value (assessed value for property tax), comparable sales, or an independent appraisal. For significant gifts, obtain a professional appraisal and keep it on file. The BIR may challenge valuations, so documentation is critical.
No. The ₱250,000 exemption is <strong>per donor per calendar year</strong>, not per donee. If you gift ₱100,000 to your child, ₱100,000 to your spouse, and ₱100,000 to a friend in the same year, the total is ₱300,000, and ₱50,000 is taxable (₱300,000 − ₱250,000 = ₱50,000 × 6% = ₱3,000 in tax). The number of donees does not increase your exemption.
Late filing incurs a <strong>25% surcharge</strong> on the unpaid tax under NIRC §248, plus <strong>12% annual interest</strong> under NIRC §249. For example, if you owe ₱12,000 in donor's tax and file 60 days late, you owe ₱12,000 + ₱3,000 (surcharge) + interest. The total can exceed ₱15,000. Timely filing is essential to avoid these penalties.
Yes. Non-resident aliens and foreign corporations making gifts of <strong>Philippine property</strong> are subject to donor's tax; the 6% flat rate under NIRC §99 and the ₱250,000 exemption apply, with the situs of property determined under NIRC §104. However, gifts of property located outside the Philippines by non-residents are generally not subject to Philippine donor's tax. Non-residents must file BIR Form 1800 and pay tax on gifts of Philippine real property, securities, and other assets located in the Philippines.
Sources & References (3)
Primary sources and the laws, regulations, and official issuances this page relies on. Each citation links directly to the issuing authority’s document.
- Bureau of Internal Revenue. “6% flat donor's tax on total gifts in excess of P250,000 per calendar year (regardless of donor-donee relationship).” bir.gov.ph. NIRC Sec. 99 as amended by RA 10963 (TRAIN); filing within 30 days (Sec. 103(B), BIR Form 1800). Accessed .
- LawPhil Project (Arellano Law Foundation). “TRAIN donor's tax amendment and deletion of the old dowry exemption — statute text.” lawphil.net. RA 10963 (TRAIN), amending NIRC Sec. 99 and repealing Sec. 101(A)(1). Accessed .