Donee in Philippine Gift and Donor's Tax
Updated June 13, 2026
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Definition
A donee is the person who receives a gift or donation from another person (the donor) in the Philippines. The gift itself is excluded from the donee's gross income, but income later earned from the gifted property is taxable, as governed by the National Internal Revenue Code and BIR regulations.
Under Philippine tax law, a donee is the recipient of a gratuitous transfer of property or money. The donor's tax under Section 98 of the Tax Code is imposed on the donor, at 6% of total gifts in excess of ₱250,000 made during the calendar year (Section 99), regardless of how many donees receive them or how they are related to the donor. For the donee, the value of property acquired by gift is excluded from gross income, but income from that property is included (Section 32(B)(3)). BIR Revenue Regulations No. 12-2018 sets out the consolidated rules on donor's tax.
Detailed explanation
Definition
A donee is any person who receives a gift, that is, a transfer of property without consideration, from another person (the donor). Under the National Internal Revenue Code (NIRC), the donee is the recipient side of a gratuitous transfer. The donor bears the donor's tax, while the donee's own exposure is limited to income later earned from the property.
Legal Framework
NIRC §§98 to 104 govern donor's tax. Section 99 imposes a 6% tax on total gifts in excess of ₱250,000 made during the calendar year, regardless of the donee's relationship to the donor. Estate tax (NIRC §84) applies to transfers upon death. The Tax Reform for Acceleration and Inclusion (TRAIN) Law (RA 10963, effective 1 January 2018) replaced the earlier graduated rates and the higher rate for gifts to strangers with this single 6% rate. RR 12-2018 contains the implementing rules.
Who Can Be a Donee
Any natural person, corporation, partnership, or other entity capable of receiving property may be a donee. This includes family members, unrelated individuals, charitable organizations, educational institutions, and religious groups. Since TRAIN, the relationship between donor and donee does not change the rate; what matters are the exemptions in NIRC §101, such as gifts to the government and to accredited non-profit organizations.
Donee Tax Obligations
In the Philippines, the donee does not pay income tax on the gift received, because property acquired by gift is excluded from gross income (NIRC §32(B)(3)). Income from the property is taxable. For example, if Juan dela Cruz receives ₱500,000 as a gift from his mother, he does not owe income tax on that ₱500,000. However, if the ₱500,000 is invested in a business that generates ₱50,000 annual income, Juan must report and pay tax on the ₱50,000 income (not the original gift).
Annual Exemption and Exemptions
Under NIRC §99, the first ₱250,000 of a donor's total gifts in a calendar year is not subject to donor's tax. The ₱250,000 is counted per donor across all donees, not per donee. Gifts in excess of ₱250,000 in a single year are subject to the 6% donor's tax, which the donor must pay. Donations between spouses during the marriage are void under Article 87 of the Family Code, except moderate gifts on occasions of family rejoicing.
Donee Reporting Requirements
Donees do not file a return for gifts received, and the gift is not reported as income on BIR Form 1700 or 1701. The donor files the donor's tax return, BIR Form 1800, within 30 days after the gift (NIRC §103). Donees who receive gifts that generate income (e.g., rental property, business assets) must report the income derived from those assets.
Special Cases: Donees of Charitable Gifts
Gifts to accredited non-stock, non-profit organizations are exempt from donor's tax if not more than 30% of the gift is used for administration (NIRC §101(A)(3)). The donor may also claim a deduction, within limits, on its income tax return (NIRC §34(H)). The donation is not income to the organization (NIRC §32(B)(3)).
Donee Position in Case of Donor Default
The donor's tax is imposed on the donor (NIRC §98), and an unpaid tax carries a 25% surcharge and 12% annual interest. For the donee, the practical consequence is that the BIR will not issue the Certificate Authorizing Registration needed to transfer title to land or registered shares until the taxes on the donation are paid.
Practical Implications for Donees
Donees should keep clear documentation of gifts received, including the deed of donation, bank transfer records, and proof of tax payments. Donations of real property also bear documentary stamp tax of ₱15 per ₱1,000 (NIRC §196), and a later sale by the donee of property held as a capital asset is subject to 6% capital gains tax.
Why it matters
Donees need to understand their tax position when receiving gifts. Donees do not pay income tax on gifts themselves, but gifts of income-producing assets create ongoing tax duties, and a donee of land or shares needs proof that the donor's tax and documentary stamp tax were paid before title can be transferred.
How it works
Gift Receipt and Documentation
The donee receives property or money from a donor. A donation is perfected only when the donor learns of the donee's acceptance, and a donation of real property must be made and accepted in a public instrument (Civil Code Arts. 734 and 749). The donee should keep the deed of donation or bank transfer record as proof.
Donor Pays the Tax
The donor is responsible for computing and paying the 6% donor's tax on total gifts exceeding ₱250,000 per calendar year, counting gifts to all donees together. The donor files BIR Form 1800 within 30 days after the gift (NIRC §99, §103). The donee does not file a return for the gift.
Donee Reports Income from Gifted Assets
If the gifted property generates income (rental, business profit), the donee reports that income on their annual income tax return; dividends from domestic corporations are subject to final tax instead. The original gift is excluded from gross income, but the income derived from it is taxable (NIRC §32(B)(3)).
Compliance and Record-Keeping
The donee should keep the deed of donation, proof of the donor's tax and DST payments, and the Certificate Authorizing Registration (CAR) for registered property. These records support title transfer and any later sale.
Examples
Maria receives ₱200,000 from her father
Maria's father gives her ₱200,000 in cash, his only gift that year. Since total gifts for the year do not exceed ₱250,000, no donor's tax is due (NIRC §99). Maria does not report the gift as income, because gifts are excluded from gross income (NIRC §32(B)(3)).
Anna receives ₱500,000 real property from her mother
Anna's mother donates a residential lot valued at ₱500,000, her only gift that year. The first ₱250,000 of the year's gifts is exempt; the excess ₱250,000 is subject to 6% donor's tax (₱15,000), which the mother pays. The deed of donation also bears documentary stamp tax of ₱15 per ₱1,000, or ₱7,500 (NIRC §99, §196). Anna owes no income tax on the gift.
Juan receives a rental property worth ₱1,000,000
Juan's uncle gives him a commercial building valued at ₱1,000,000, his only gift that year. The uncle pays 6% donor's tax on ₱750,000 (the excess over ₱250,000) = ₱45,000; the rate is the same whatever the relationship. Juan does not pay tax on the gift itself, but must report the annual rental income (e.g., ₱60,000/year) on his income tax return.
Charity receives ₱2,000,000 donation
An accredited non-stock, non-profit charitable organization receives a ₱2,000,000 donation from a corporation. The gift is exempt from donor's tax if not more than 30% of it is used for administration (NIRC §101(A)(3)), and the corporation may claim a deduction under NIRC §34(H) if conditions are met. The donation is not income to the charity (NIRC §32(B)(3)).
Spouse receives ₱5,000,000 gift
Maria's husband wants to give her ₱5,000,000 in shares. Under Article 87 of the Family Code, donations between spouses during the marriage are void, except moderate gifts on occasions of family rejoicing, so this transfer would not be a valid gift. The Tax Code has no special donor's tax exemption for spouses.
Common misconceptions
- Myth: The donee must pay income tax on the gift received.
- Fact: No. Property received by gift is excluded from the donee's gross income (NIRC §32(B)(3)). The donor pays the donor's tax (6% on total gifts over ₱250,000 per year). The donee only pays tax on income generated by the gifted asset.
- Myth: If the donor does not pay donor's tax, the donee is liable.
- Fact: The donor's tax is imposed on the donor (NIRC §98), and the BIR collects it from the donor. The donee's practical risk is that title to registered property cannot be transferred without proof that the tax was paid.
- Myth: All gifts must be reported to the BIR by the donee.
- Fact: Donees do not file a return for gifts received, and gifts are not income on the donee's income tax return. The donor files BIR Form 1800 within 30 days after the gift (NIRC §103).
- Myth: Gifts of real property are exempt from all transfer taxes.
- Fact: Donations of real property bear documentary stamp tax on the deed (NIRC §196), and a later sale by the donee of property held as a capital asset is subject to 6% capital gains tax. The gift itself is not subject to income tax, but subsequent income or gains are.
- Myth: A donee can refuse to accept a gift to avoid tax complications.
- Fact: A donation is perfected only when the donor learns of the donee's acceptance (Civil Code Art. 734), and a donation of real property must be accepted in a public instrument (Art. 749). Without acceptance there is no completed gift.
Questions people ask
Do I have to pay tax on a gift I receive in the Philippines?
No. Property received by gift is excluded from the donee's gross income (NIRC §32(B)(3)). The donor pays a 6% donor's tax on total gifts exceeding ₱250,000 per calendar year (NIRC §99). You only pay tax on income generated by the gifted asset (e.g., rental income).
What if the gift exceeds ₱250,000 in one year?
If the donor's total gifts for the year exceed ₱250,000, the excess is subject to 6% donor's tax, which the donor must pay. For example, a ₱500,000 gift with no other gifts that year triggers 6% tax on ₱250,000 = ₱15,000 donor's tax. You (the donee) do not pay this tax; the donor does.
Do I need to report a gift on my income tax return?
No. Gifts are excluded from gross income, so they are not income on BIR Form 1700 or 1701 (NIRC §32(B)(3)). The donor reports the gift on BIR Form 1800, the donor's tax return.
Are gifts between spouses taxable?
Donations between spouses during the marriage are void under Article 87 of the Family Code, except moderate gifts on occasions of family rejoicing. The Tax Code itself has no donor's tax exemption for spouses.
What happens if the donor does not pay the donor's tax?
The donor is the person liable for the donor's tax, plus a 25% surcharge and 12% annual interest on late payment (NIRC §248, §249). Without proof of payment, the BIR will not issue the Certificate Authorizing Registration needed to transfer title to land or shares to you. Keep documentation of the gift.
Can a donee claim a deduction for receiving a gift?
No. Donees do not claim deductions for gifts received. However, if the donee is an accredited charitable, educational, or religious organization, the donor may claim a deduction under NIRC §34(H) if the conditions are met.
Do I owe tax on gifts from overseas relatives?
No. Gifts are excluded from the recipient's gross income regardless of where they come from (NIRC §32(B)(3)). Donor's tax is the donor's concern: Filipino citizens and resident aliens are taxed on gifts of property wherever situated, while nonresident aliens are taxed only on gifts of property situated in the Philippines (NIRC §98, §104).
In practice
- Donees receiving land or shares should ask the donor for proof that donor's tax and DST were paid, since the Certificate Authorizing Registration is needed before the Registry of Deeds or the corporate secretary records the transfer.
- Donees of real property should obtain a certified true copy of the deed of gift and register it with the Registry of Deeds to establish clear ownership and protect against future disputes.
- Donees who receive income-producing assets (rental property, business interests) must report the income that is not subject to final tax on their annual income tax returns, even though the original gift was not taxable.
- Donations to accredited non-stock, non-profit organizations are exempt from donor's tax only if not more than 30% of the gift is used for administration (NIRC §101(A)(3)).
- Donations between spouses during the marriage are void under Article 87 of the Family Code, except moderate gifts on occasions of family rejoicing.
Next steps
Learn more
Donor Tax Calculator Calculate Tax Owed By Gift Givers
Income Tax Calculator Determine Tax On Income From Gifted Assets
Estate Tax Calculator Calculate Inheritance Tax Obligations
BIR Form 1700 Annual Income Tax Return For Individuals
BIR Form 1701 Annual Income Tax Return For Self Employed
BIR Form 1800 Donor'S Tax Return
Complete Guide To Gift Tax In The Philippines
How To File Donor'S Tax Returns
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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.
- LawPhil Project (Arellano Law Foundation). “NIRC §98-101 as amended by RA 10963: donee / net gift / P250,000 exclusion.” lawphil.net. NIRC of 1997 (RA 8424), Sec. 98-101, as amended by RA 10963. Accessed .
- Bureau of Internal Revenue. “BIR: Donor's Tax (donee, exclusions).” bir.gov.ph. Bureau of Internal Revenue, Donor's Tax. Accessed .