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Gift Tax?


Bringer

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Hello,

I have 2 sisters who have been friends of mine for years.

I am not getting any younger, and I am afraid if I put them in my will, there may not be getting the money, for whatever reasons.

So I thought, maybe I give them now what I would allot in my will.

My question is: If I give them each around 300.000 PHP by way of transfer to their account via TransferWise, would they have to pay any gift or other tax on it?

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Posted (edited)
5 hours ago, Bringer said:

My question is: If I give them each around 300.000 PHP by way of transfer to their account via TransferWise, would they have to pay any gift or other tax on it?

You said you have already found your answer, but have you?

The site you subsequently linked to said that gifts of up to 100,000 PHP are exempt and up to 200,000 have to be reported but pay 0 tax.  However, what if you sent 100,000 PHP a year for 3 years.  Exempt?  It would seem so "1.  When the gifts are made during the same calendar year but on different dates, the donor's tax shall be computed based on the total net gifts during the year."

Edited by Dave Hounddriver
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On 3/1/2021 at 11:10 AM, Snowy79 said:

Sometimes a well meaning act of kindness can bring grief for the receiver. 

Scrooge would be proud!

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3 hours ago, Dave Hounddriver said:

Scrooge would be proud!

Scrooge probably wouldn't suggest buying them something instead. I'm sure you've lived here long enough to have tales of people coming into money and the usual reprobates coming out of the woodwork wanting their share.  I've had partners pressurised by friends and family to try and borrow money thinking they has access to my finances.  She lost friends over it with the usual accusations of " she thinks she's something now she has a wealthy boyfriend."  When in reality they never changed and I'm not wealthy. :tiphat:

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On 3/1/2021 at 3:14 PM, Dave Hounddriver said:

The site you subsequently linked to said that gifts of up to 100,000 PHP are exempt and up to 200,000 have to be reported but pay 0 tax.  However, what if you sent 100,000 PHP a year for 3 years.  Exempt?  It would seem so "1.  When the gifts are made during the same calendar year but on different dates, the donor's tax shall be computed based on the total net gifts during the year."

This not the current tax rates, Effective 2018, gifts up to 250,000 PHP per year are exempt, any amounts over this in a calendar year are taxed at 6%.

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30 minutes ago, sonjack2847 said:

Buy a piece of land and put it in their name.

 

Small point, Sonjack... Foreigners cannot buy or own land here...

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2 hours ago, Snowy79 said:

Scrooge probably wouldn't suggest buying them something instead. I'm sure you've lived here long enough to have tales of people coming into money and the usual reprobates coming out of the woodwork wanting their share.  I've had partners pressurised by friends and family to try and borrow money thinking they has access to my finances.  She lost friends over it with the usual accusations of " she thinks she's something now she has a wealthy boyfriend."  When in reality they never changed and I'm not wealthy. :tiphat:

Never a truer word spoken Snowy. The " moment " its relaised someone has some pera, then the reasons for borrowing, without any intention will come out..

Loan for underperforming sari sari store / Motorbike repair/ buying pigs for a business idea / caribao replacement / lechon for celebrating new found wealth / priest wanting a donation kids need tablets for schooling and they must also be suitable  for gaming /new phone to make better tiktok videos... etcetc... Im thankfully removed from these parts of life here,  but I know enough kind folks  that have felt pressured to provide money that was never returned and sadly.. for which a thankyou wasnt received either.

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