Exemptions from Gross Gift

This is related to the article donor's tax rates. The following may be deducted from gross gift taxes:

1.) Wedding gifts -up to Php10,000 worth may be deducted from gifts given by virtue of marriage before the celebration of the wedding (beginning with the engagement) or 1 year afterwards by each parent to his/her child regardless of adoption, legitimacy or illegitimacy. This is not available to donors who aren't residents of the Philippines.

2.) Gifts made to the government -obviously!

3.) Gifts to charitable, educational, cultural, philanthropic, research or social welfare institutions.

4.) Amount of mortgage assumed by the donee (receiver of the gift.)

5.) Amount specifically provided by the donor as a diminution of the donated property.

Remember also: you can deduct Php100,000 worth of donor's tax every calendar year.