ChanRobles Virtual law Library
PHILIPPINE LAWS, STATUTES & CODES
A collection of Philippine laws, statutes and codes not included or cited in the main indices of the Chan Robles Virtual Law Library.
REPUBLIC ACTS
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AN ACT TO AMEND SECTIONS
EIGHTY-SIX, EIGHTY-NINE, ONE HUNDRED AND TEN, ONE HUNDRED AND TWELVE,
ONE HUNDRED AND SIXTEEN AND ONE HUNDRED AND TWENTY-TWO OF TITLE III OF
COMMONWEALTH ACT NUMBERED FOUR HUNDRED AND SIXTY-SIX |
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Section 1. Sec. eighty-six of Commonwealth Act Numbered Four hundred and sixty-six is hereby amended to read as follows: "Sec.
86. Rates of inheritance tax. — In addition to the
estate tax imposed by Sec. eighty-five, there shall be levied,
assessed, collected and paid an inheritance tax equal to the sum of the
following percentages of the value of the individual share of each heir
or beneficiary in the net estate, after deducting the amount of the
estate tax, of every decedent, whether a resident or non-resident of
the Philippines: "Two
per centum of the amount of the share not in excess of ten thousand
pesos; "(c) When other relatives within the sixth degree not included in the two next preceding subSec.s are beneficiaries, there shall be collected upon the share which corresponds to each beneficiary the same tax fixed in subSec. (a) with an increase of one hundred and fifty per centum. "(d) When a relative by affinity within the same degree as those mentioned in subSec.s (a) and (b), with the exception of the surviving spouse, is the beneficiary, there shall be collected the same tax fixed in subSec. (a) with an increase of two hundred and twenty-five per centum. "(e) When strangers are beneficiaries there shall be collected upon the share which corresponds to each beneficiary the same tax fixed in subSec. (a) with an increase of four hundred per centum. "For the purposes of this tax, strangers are deemed those relatives by consanguinity of the seventh or more remote degree in the collateral line, and all relatives by affinity with the exception of the spouse and those mentioned in subSec. (d) of this Sec.: Provided, however, That where the beneficiary is a domestic servant, or a trusted employee, there shall be collected on the first two thousand pesos and five thousand pesos, respectively, the tax fixed in subSec. (a) of this Sec., and on the excess, the tax prescribed in this subSec.. In cases of property which by the will of the testator should be divided among the poor, without the designation of any particular persons, or which should be disposed of for masses or other pious works, there shall be collected the tax at the rate fixed in this subSec. upon the total amount of said property. "In case the property is transmitted to the heirs subject to the usufructuary interest, use, or habitation, or annuity of a third person, the tax shall be based on the value of the inventoried property less than that of the usufruct, use or habitation, or annuity determined as hereinafter provided." Sec. 2. Paragraph (4) of subSec. (a) of Sec. eighty-nine of Commonwealth Act Numbered Four hundred and sixty-six is hereby repealed. Sec. 3. Sec. one hundred and ten of Commonwealth Act Numbered Four hundred and sixty-six is hereby amended to read as follows: "Sec.
110. Rates of tax payable by donee. — In addition to
the gift tax imposed under the preceding Sec., there shall be levied a
tax in the amount equal to the excess of a tax, computed in accordance
with the rate schedule hereinafter set forth, on the aggregate sum of
the net gifts received by each donee for such calendar year and for
each of the preceding calendar years, over a tax, computed in
accordance with the rate schedule, on the aggregate sum of the net
gifts for each of the preceding calendar years received by each donee. "One
per centum upon the first ten thousand pesos; "(b) When the donee or beneficiary is a brother or sister who is a legitimate or acknowledged natural child of a common father or mother, or both, of the donor, or the children of such brother or sister, or any descendant mentioned as such in the deed and not included in subSec. (a) hereof, there shall be collected the same tax fixed in said subSec. with an increase of seventy-five per centum. "(c) When the donee or beneficiary is a relative within the sixth degree and not included in subSec. (a) and (b), there shall be collected the same tax fixed in subSec. (a) with an increase of one hundred and fifty per centum. "(d) When the donee or beneficiary is a relative by affinity within the same degree as those mentioned in subSec.s (a) and (b), with the exception of the spouse, there shall be collected the same tax fixed in subSec. (a) with an increase of two hundred and twenty-five per centum. "(e) When the donee or beneficiary is a stranger, there shall be collected the same tax fixed in subSec. (a) with an increase of four hundred per centum. "For the purpose of this tax, strangers are deemed those relatives by consanguinity of the seventh or more remote degree in the collateral line, and all relatives by affinity not included in subSec.s (a) and (d): Provided, however, That where the beneficiary is a domestic servant or a trusted employee, there shall be collected on the first two thousand pesos and five thousand pesos, respectively, the tax fixed in subSec. (a) of this Sec. and, on the excess, the tax prescribed in this subSec.. In cases of property which by the desire of the donor should be divided among the poor, without the designation of any particular persons, or which should be disposed of for masses or other pious works, there shall be collected from the donee the tax at the rate fixed in this subSec. upon the total aggregate amount of such gifts. "In case the property donated is subject to the usufructuary interest, use or habitation or annuity of a third person, the tax shall be based on the value of the net gifts less that of the usufruct, use or habitation or annuity determined in accordance with the provisions of Sec. ninety-one." Sec. 4. Sec. one hundred and twelve of Commonwealth Act Numbered Four hundred and sixty-six is hereby amended to read as follows: "Sec.
1121. Exemption of certain gifts. — The following
gifts or donations shall be exempt from the tax provided for in this
Chapter. "(1)
Dowries or gifts made on account of marriage and before its celebration
or within one year thereafter by parents to each of their legitimate,
recognized natural, or adopted children to the extent of the first ten
thousand pesos. "(b) In the case of gifts made by a non-resident not a citizen of the Philippines: "Gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government." Sec. 5. Paragraph (a) of Sec. one hundred and sixteen of Commonwealth Act Numbered Four hundred and sixty-six is hereby amended to read as follows: "(a)
Time of payment of tax. — The gift taxes imposed by Sec.s one hundred
and nine and one hundred and ten of this Chapter shall be due and
payable on or before the fifteenth day of May following the close of
the calendar year and shall be paid by the donor or donee, as the case
may be, to the Collector of Internal Revenue or to the treasurer of the
province, city or municipality of which the donor or the donee is a
resident." Sec. 6. Sec. one hundred and twenty-two of Commonwealth Act Numbered Four hundred and sixty-six is hereby amended to read as follows: "Sec.
122. Definitions. — For the purposes of this Title,
the term "gross estate" and "gift" include real estate and tangible
personal property or mixed physically located in the Philippines;
franchise which must be exercised in the Philippines; shares,
obligations, or bonds issued by any corporation or sociedad anonima
organized or constituted in the Philippines in accordance with its
laws; shares, obligations, or bonds issued by any foreign corporation
eighty-five per centum of the business of which is located in the
Philippines; shares, obligations, or bonds issued by any foreign
corporation if such shares, obligations, or bonds have acquired a
business situs in the Philippines; shares or rights in any partnership;
business or industry established in the Philippines; or any personal
property, whether tangible or intangible, located in the Philippines:
Provided, however, That in the case of a resident, the transmission or
transfer of any intangible personal property, regardless of its
location, is subject to the taxes prescribed in this Title: And
provided, further, That no tax shall be collected under this Title in
respect of intangible personal property (a) if the decedent at the time
of his death was a resident of a foreign country which at the time of
his death did not impose a transfer tax or death tax of any character
in respect of intangible personal property of citizens of the
Philippines not residing in that foreign country, or (b) if the laws of
the foreign country of which the decedent was a resident at the time of
his death allow a similar exemption from transfer taxes or death taxes
of every character in respect of intangible personal property owned by
citizens of the Philippines not residing in that foreign country. "The
term "deficiency" means (1) the amount by which the taxes imposed by
this Chapter exceed the amount shown as the taxes by the donor or donee
upon his return; but the amount so shown on the return shall first be
increased by the amounts previously assessed (or collected without
assessment) as a deficiency, and decreased by the amounts previously
abated, refunded, or otherwise repaid in respect of such taxes; or (2)
if no amount is shown as the taxes by the donor or donee upon his
return, or if no return is made by the donor or donee, then the amount
by which the taxes exceed the amounts previously assessed (or collected
without assessment) as a deficiency; but such amounts previously
assessed, or collected without assessment, shall first be decreased by
the amounts previously abated, refunded, or otherwise repaid in respect
of such taxes." Sec. 7. This Act shall take effect on October first, nineteen hundred and forty-six. Approved: October 29,
1946 |
