How to File Donor's Tax Return (Form 1800)
The donor's tax is a tax imposed on any person who makes a donation or gift of property -- whether real property, personal property, cash, or shares of stock -- exceeding P250,000 in aggregate per calendar year. Under the TRAIN Law (Republic Act No. 10963), the donor's tax rate is a flat 6% on the total donations in excess of P250,000. This comprehensive guide explains how to compute, file, and pay the donor's tax using BIR Form 1800.
Donor's Tax at a Glance
Tax Rate
6% flat rate on the total value of donations exceeding the P250,000 exemption per calendar year. This simplified rate applies to all donors regardless of the relationship to the donee.
Exempt Amount
The first P250,000 worth of total donations made during the calendar year is exempt from donor's tax. This exemption applies per donor, per year.
Filing Deadline
The donor's tax return (BIR Form 1800) must be filed and the tax paid within 30 days after the date the donation was made.
When Does Donor's Tax Apply?
Donor's tax applies when the aggregate value of donations made by a donor exceeds P250,000 within a calendar year. The following types of donations are subject to donor's tax:
Donation of Real Property
Land, buildings, or any immovable property donated to another person. The value is based on the higher of the fair market value per the BIR zonal valuation or the assessed value per the tax declaration from the local assessor's office.
Donation of Personal Property or Cash
Cash gifts, vehicles, jewelry, equipment, and other movable property. The value is based on the fair market value at the time of donation.
Donation of Shares of Stock
Shares of stock in a corporation, whether listed or unlisted. Listed shares are valued at the closing price on the date of donation. Unlisted shares are valued at book value per the latest audited financial statements.
Aggregate Exceeds P250,000/Year
All donations made by the same donor within the calendar year are added together (aggregated). Once the total exceeds P250,000, the excess is subject to the 6% donor's tax.
Exempt Donations
The following donations are exempt from donor's tax under the National Internal Revenue Code and the TRAIN Law:
- First P250,000 per year -- The first P250,000 of total donations made by a donor during each calendar year is exempt from donor's tax. This exemption resets every January 1.
- Donations to the national government -- Gifts made to the national government, local government units (LGUs), or any political subdivision thereof, including government-owned or controlled corporations (GOCCs), are exempt from donor's tax.
- Donations to accredited non-governmental organizations (NGOs) -- Donations to accredited non-profit organizations, charitable institutions, and NGOs that are certified by the Philippine Council for NGO Certification (PCNC) or similar accrediting bodies recognized by the BIR.
- Donations to educational and cultural institutions -- Donations to accredited educational institutions, including public and private schools, colleges, and universities, as well as cultural institutions, provided not more than 30% of the donation is used for administrative purposes.
How to Compute Donor's Tax
The computation of donor's tax under the TRAIN Law is straightforward. All donations made within the calendar year are aggregated, the P250,000 exemption is deducted, and the flat 6% rate is applied to the excess.
Donor's Tax Formula
Total Donations (during the calendar year)
Less: P250,000 Exemption
Taxable Amount = A minus B
Donor's Tax = C x 6%
Quick Example: If total donations for the year = P1,000,000, the donor's tax is (P1,000,000 - P250,000) x 6% = P750,000 x 6% = P45,000.
Requirements for Filing Donor's Tax Return
| Document | Details |
|---|---|
| BIR Form 1800 | The official Donor's Tax Return form. Can be downloaded from the BIR website (bir.gov.ph) or obtained from the Revenue District Office (RDO). Must be filed in triplicate. |
| Deed of Donation | A notarized deed of donation signed by both the donor and the donee (recipient). For real property, the deed must describe the property in detail and include the technical description from the title. Original and two photocopies are required. |
| TIN of Donor and Donee | Both the donor and the donee must have a Taxpayer Identification Number (TIN). If the donee does not have a TIN, they must apply for one before the donor's tax return can be filed. |
| Valid Government-Issued ID | At least one valid ID of the donor (e.g., passport, driver's license, PhilSys/National ID, UMID, SSS ID, PRC ID). Bring original and photocopy. |
| Property Documents (if real property) | Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT), certified true copy from the Registry of Deeds. Also the latest Tax Declaration from the local assessor's office. |
| Zonal Valuation / Tax Declaration | Certificate of BIR Zonal Value for the property location. This determines the minimum fair market value for tax purposes. Also submit the latest Tax Declaration from the municipal/city assessor's office showing the assessed value of the property. |
| Proof of Tax Payment | Tax payment confirmation from an Authorized Agent Bank (AAB) or Revenue Collection Officer (RCO). eFPS or eBIRForms confirmation may also be accepted. |
Step-by-Step: How to File Donor's Tax (Form 1800)
The following steps outline the complete process for filing and paying donor's tax. Remember that the return must be filed within 30 days after the date of donation.
Execute the Deed of Donation
Prepare and execute a Deed of Donation signed by the donor and accepted by the donee (recipient). The deed must be notarized by a notary public. For real property, the deed should include the complete technical description of the property as stated in the title, the location, area, and boundaries. For personal property or cash, clearly state the nature and value of the donated property.
Tip: For donations of real property, it is advisable to have a lawyer prepare the Deed of Donation to ensure all legal requirements are met and the description of the property is accurate. The notarization fee is typically P500 to P2,000 depending on the value of the property.
Compute the Donor's Tax
Determine the fair market value of the donated property. For real property, use the higher of the BIR zonal value or the assessed value per the tax declaration. For personal property, use the fair market value at the time of donation. Aggregate all donations made during the calendar year, deduct the P250,000 exemption (if not yet used up), and multiply the excess by 6%.
Important: If you have already used the P250,000 exemption on a previous donation earlier in the same year, the full value of subsequent donations is taxable at 6%. The exemption is applied to the first P250,000 of total donations per year, not per transaction.
Fill Out BIR Form 1800
Download BIR Form 1800 (Donor's Tax Return) from the BIR website or obtain it from your RDO. Fill out the form completely with the following information:
- Personal information of the donor (name, TIN, address, contact number)
- Personal information of the donee (name, TIN, address, relationship to donor)
- Description of the donated property (type, location, area, title number for real property)
- Fair market value of the property and computation of the tax
- Previous donations made during the same calendar year (for aggregation purposes)
Tip: You can also use the eBIRForms software to fill out Form 1800 electronically. Download eBIRForms from the BIR website at bir.gov.ph.
File at the Revenue District Office (RDO)
Submit the accomplished BIR Form 1800 together with all required supporting documents at the RDO that has jurisdiction over the donor's place of residence. If the donation involves real property, file at the RDO that has jurisdiction over the location of the property. Bring original documents and at least two photocopies of each.
Filing Deadline: The return must be filed within 30 days after the date the donation was made. Late filing will result in penalties (25% surcharge for late filing or 50% for fraud/willful neglect), interest (12% per year), and compromise penalties.
Pay the Donor's Tax
After filing the return, pay the donor's tax through any of the following methods:
- Authorized Agent Bank (AAB) -- Present the filed BIR Form 1800 to any AAB within the RDO's jurisdiction and pay over the counter. The bank will stamp and validate the return.
- Revenue Collection Officer (RCO) -- If there is no AAB available, pay directly to the RCO at the RDO.
- Online Payment -- For eFPS-enrolled taxpayers, payment can be made online through the BIR eFPS portal or through GCash/Maya and other BIR payment partners.
Note: Keep the validated/stamped return as proof of filing and payment. You will need this to obtain the Certificate Authorizing Registration (CAR) for real property transfers.
Get the Certificate Authorizing Registration (CAR)
If the donation involves real property, you need to obtain a Certificate Authorizing Registration (CAR), also known as the eCAR, from the BIR. The CAR is the BIR's clearance that all taxes related to the transfer have been paid. Without the CAR, the Registry of Deeds will not process the transfer of title from the donor to the donee.
Submit the following to the RDO to request the eCAR:
- Validated BIR Form 1800 (proof of tax payment)
- Notarized Deed of Donation
- Certified true copy of the title (TCT/OCT)
- Tax Declaration from the local assessor
- Certificate of BIR Zonal Value
- TIN of both donor and donee
Processing Time: The eCAR is typically released within 5 to 20 working days from submission of complete documents, depending on the RDO. After receiving the eCAR, you can proceed to the Registry of Deeds to transfer the title, then to the local assessor's office to update the tax declaration under the donee's name.
Complete Example: Lola Maria Donates Land to Her Grandchild
Lola Maria, age 72, wants to donate a parcel of agricultural land in Batangas to her grandchild, Marco. The land has a BIR zonal value of P800,000 and an assessed value of P500,000 per the tax declaration. This is Lola Maria's first and only donation for the year. Here is how they processed the donation:
Executed the Deed of Donation
Lola Maria and Marco went to a lawyer who prepared the Deed of Donation describing the land in detail (lot number, area, technical description from the TCT). Both Lola Maria (as donor) and Marco (as donee) signed the deed. The deed was notarized by the lawyer for a fee of P1,000.
Computed the Donor's Tax
Filed BIR Form 1800 and Paid the Tax
Lola Maria filled out BIR Form 1800, declaring the donation of the land to Marco. She submitted the form together with the notarized Deed of Donation, certified true copy of the TCT, Tax Declaration, Certificate of Zonal Value, and photocopies of both their TINs and IDs at the RDO in Batangas (the RDO with jurisdiction over the property). She then paid the P33,000 donor's tax at the Authorized Agent Bank within the RDO.
Obtained the eCAR and Transferred the Title
After 10 working days, the RDO released the electronic Certificate Authorizing Registration (eCAR). Lola Maria and Marco then brought the eCAR, validated Form 1800, notarized Deed of Donation, and other documents to the Registry of Deeds in Batangas to transfer the title. The Registry of Deeds issued a new TCT under Marco's name. They also went to the municipal assessor's office to update the tax declaration.
Cost Summary for Lola Maria's Donation
Actual costs may vary by locality. The donor's tax (P33,000) is the main expense. Other fees are for processing the property transfer. Timeline: approximately 2-4 weeks from filing to title transfer completion.
Frequently Asked Questions
What is the deadline for filing donor's tax?
The donor's tax return (BIR Form 1800) must be filed and the tax paid within 30 days after the date the donation was made. Failure to file within this period will result in a 25% surcharge on the tax due, plus 12% interest per year from the deadline until the date of payment, plus compromise penalties.
Can I donate P250,000 tax-free every year?
Yes. Under the TRAIN Law, the first P250,000 of total donations made by a donor in a calendar year is exempt from donor's tax. This exemption resets every year on January 1. However, the exemption is per donor, not per donee. If you donate P100,000 to one person and P200,000 to another in the same year, the total is P300,000, and only P50,000 (the amount exceeding P250,000) is subject to the 6% tax.
Is the 6% rate the same for strangers and relatives?
Yes. Under the TRAIN Law, the donor's tax rate is a flat 6% regardless of the relationship between the donor and donee. Prior to the TRAIN Law, there were different rates for donations to relatives (lower rates) versus strangers (30% flat rate). The TRAIN Law simplified this to a single 6% rate for everyone.
Do I need a CAR for donations of personal property or cash?
No. The Certificate Authorizing Registration (CAR or eCAR) is only required for donations involving real property (land, buildings) because the title needs to be transferred at the Registry of Deeds. For donations of cash, personal property, or shares of stock, you still need to file BIR Form 1800 and pay the tax, but no CAR is needed.
What happens if I don't pay the donor's tax?
Failure to file and pay the donor's tax will result in the following penalties: (1) 25% surcharge for late filing or 50% surcharge for willful neglect or fraud; (2) 12% interest per year on the unpaid tax from the due date until payment; and (3) compromise penalties as assessed by the BIR. Additionally, for real property, you will not be able to transfer the title without paying the donor's tax and obtaining a CAR.
Can I file donor's tax online?
Yes. You can fill out BIR Form 1800 using the eBIRForms software (offline application) and submit it electronically, or file through the eFPS (Electronic Filing and Payment System) if you are enrolled. Payment can be made online through eFPS partner banks, GCash, Maya, or other BIR-accredited payment channels. However, the supporting documents (Deed of Donation, title, etc.) still need to be submitted physically at the RDO.
Is there a donor's tax on donations between husband and wife?
Donations between spouses during the marriage are void under Philippine law (Article 87, Family Code), except for moderate gifts on special occasions. Since such donations are void, the question of donor's tax generally does not arise. However, if the donation can be considered valid (such as after legal separation or annulment), it would be subject to donor's tax under the usual rules.
Important Reminders
- File within 30 days: The donor's tax return must be filed and the tax paid within 30 days after the date of donation. Mark your calendar and do not miss this deadline.
- Aggregate all donations per year: All donations made by the same donor within the calendar year are added together. The P250,000 exemption applies to the total, not to each individual donation.
- Use fair market value: For real property, always use the higher of the BIR zonal value or the assessed value per the tax declaration. Using a lower value may result in BIR assessment and penalties.
- Keep all receipts and documents: Retain the validated BIR Form 1800, Deed of Donation, eCAR, and all supporting documents. You will need these for the property transfer and future reference.
- Obtain the eCAR for real property: The Certificate Authorizing Registration (eCAR) is mandatory for transferring the title at the Registry of Deeds. Do not skip this step.
- Pay Documentary Stamp Tax (DST): In addition to the donor's tax, donations of real property are also subject to Documentary Stamp Tax. Make sure to compute and pay the DST as well.
- Consider estate planning: Donations can be a useful tool for estate planning to transfer property during your lifetime. Consult with a tax professional or lawyer to determine the most tax-efficient approach for your situation.
- Exempt donations still need to be documented: Even if the donation is exempt (e.g., to the government or accredited NGOs), it is advisable to file the return and indicate the exemption to avoid future BIR inquiries.
Need Help?
Contact BIR
- BIR Hotline: (02) 8538-3200
- BIR Contact Center: 1-800-1-888-2477 (toll-free)
- Email: contact_us@bir.gov.ph
- Website: www.bir.gov.ph
- eBIRForms Download: bir.gov.ph/ebirforms
- Office Hours: Monday to Friday, 8:00 AM to 5:00 PM
Disclaimer
This guide is provided for general informational purposes only. The requirements, steps, fees, and procedures mentioned here may vary depending on the BIR you visit. We recommend visiting your nearest BIR first to confirm the specific requirements and process before preparing your documents.