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. Uses 2026 BIR rates.
Updated October 16, 2026
Calculate your tax
Donor’s tax example: one gift or several gifts
For a cash gift of ₱450,000 with no earlier gifts that year, subtract the ₱250,000 annual deduction. The remaining ₱200,000 × 6% gives ₱12,000.00 in donor’s tax.
Three gifts in the same year
The annual deduction belongs to the donor, not each recipient. Here is what happens when you give ₱200,000 in January, ₱150,000 in May and ₱250,000 in October.
| Gift date | New gift | Gifts so far | Tax on this gift |
|---|---|---|---|
| January | ₱200,000 | ₱200,000 | ₱0 |
| May | ₱150,000 | ₱350,000 | ₱6,000 |
| October | ₱250,000 | ₱600,000 | ₱15,000 |
Total tax for the year is ₱21,000. In October, the cumulative tax is ₱21,000; after the ₱6,000 paid in May, only ₱15,000 remains. These amounts assume ordinary cash gifts, no other gifts or exemptions, and earlier tax paid in full.
Generally file within 30 days of each donation, including a zero-tax return unless a specific exemption applies. See the BIR’s Form 1800 instructions.
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:
Annual donor’s tax = max(0, total taxable gifts − ₱250,000) × 6%
Underlying Tax Rules
Legal Basis:
- NIRC Section 99 (as amended by RA 10963, the 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)
- The 6% rate does not change with the donor–donee relationship; specific exemptions and the validity of the donation still matter
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 parents, children, and friends all count toward the ₱250,000 threshold.
- Property transfers at below-market value: Section 100 can treat the price difference as a gift, but excludes real property covered by Section 24(D) and qualifying arm’s-length business transactions.
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, use the higher of BIR zonal value and the assessor’s fair market value.
- Installment gifts: The date a donation is completed determines the taxable year. A payment schedule alone does not prove that separate donations occur in separate years; check the deed and transfer terms.
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 can incur penalties and interest; reduced rates apply to qualifying micro and small taxpayers.
- Keep supporting documents: deeds of donation, bank statements, property valuations, and proof of payment.
For filing and valuation, see the BIR Form 1800 instructions. The examples below show the annual deduction and how earlier payments reduce the next amount due.
Filing for a cash donation in 2026
Under BIR RMC 10-2026, file Form 1800 electronically for cash-only donations. Pay through an authorized bank or BIR electronic payment channel. Cash-only donations do not require an eCAR.
Submit the required documents to the appropriate RDO or Large Taxpayers Division within 30 days of the gift: notarized donation deed, transfer record, filing confirmation, payment record where applicable, donation certificate for an exempt recipient, identification or corporate authorization, and both parties’ TINs. Check the circular for the documents applicable to your case.
Ways to lower your tax legally
- Spread gifts across multiple calendar years
- By timing gifts strategically, you can use 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 (parents, children, friends) without incurring tax, as long as the aggregate does not exceed ₱250,000. Plan your giving to use this exemption fully. 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
- File Form 1800 within 30 days of the gift and pay any amount due. Keep the filed return and payment record. The applicable surcharge and interest depend on your taxpayer classification and whether the failure involves fraud.
Frequently asked questions
What is the difference between donor's tax and estate tax in the Philippines?
Donor's tax applies to gifts made during the donor's lifetime and is a flat 6% on gifts exceeding ₱250,000 per calendar year. Estate tax applies to the transfer of property at death and is a flat 6% of the net estate, which is the gross estate minus deductions, including a ₱5,000,000 standard deduction (NIRC Sections 84 and 86). Both are transfer taxes, but they apply at different times and allow different exemptions and deductions. Lifetime gifts can help reduce the taxable estate, making strategic gifting an important estate planning tool.
Does the ₱250,000 exemption reset every calendar year?
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.
Are gifts to my spouse exempt from donor's tax?
No. There is no spousal exemption in the donor's tax law. More to the point, under Article 87 of the Family Code (E.O. 209), every donation between spouses during the marriage is void, 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.
What happens if I gift property at a price below its fair market value?
A below-market transfer can create a deemed gift under NIRC Section 100, but the rule excludes real property covered by Section 24(D). A genuine arm’s-length business transaction without donative intent is also treated differently. Do not automatically apply donor’s tax to the price difference on a house sale; first establish the property’s classification and the applicable transfer tax.
Do I need to file a donor's tax return if my gifts are below ₱250,000?
A zero tax bill does not automatically remove the filing requirement. BIR Form 1800 is generally required within 30 days of a gift unless a specific exemption applies. The ₱250,000 annual deduction determines the tax payable; keep earlier gifts in the same year in your calculation.
What is the deadline for filing a donor's tax return?
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, 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 charges depend on your taxpayer classification; see the penalties answer below.
Are gifts to charitable organizations always exempt?
No. The recipient and donation must meet NIRC Section 101 requirements, including the limit on administrative use of the gift. BIR registration alone is not enough. Obtain the recipient’s exemption or accreditation documents and check that they apply to your donation.
How is the fair market value of real property determined for donor's tax purposes?
Use the higher of the BIR zonal value and the provincial or city assessor’s fair market value at the donation date. Zonal value is not the assessed value used for annual amilyar. The Form 1800 instructions explain this valuation rule.
Can I reduce my donor's tax by gifting to multiple donees?
No. The ₱250,000 exemption is per donor per calendar year, not per donee. If you gift ₱100,000 to your child, ₱100,000 to your sibling, 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.
What penalties apply if I file a donor's tax return late?
The standard late-payment surcharge is 25%, with 12% annual interest on unpaid tax. Qualifying micro and small taxpayers receive reduced rates under RR 6-2024: 10% surcharge and 6% annual interest. Fraud has separate penalties. Ask the BIR to assess the amount using your taxpayer classification and delay; a zero-tax return may still carry a filing penalty.
Are gifts by non-residents subject to donor's tax in the Philippines?
Yes. Non-resident aliens and foreign corporations making gifts of Philippine property 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 (2)
Primary sources and the laws, regulations, and official issuances this page relies on. Links open the recorded source documents or references.
- 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). Source checked .
- 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). Source checked .