Section 1. Section one
hundred nine of Commonwealth Act Numbered Four Hundred Sixty-Six,
otherwise known as the National Internal Revenue Code, as amended, is
hereby further amended to read as follows:
"Sec.
109. Rates of tax payable by donor. — The tax for
each calendar year shall be an 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 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 net gifts for each of
the preceding calendar year.
Rate
Schedule
"One
per centum of the amount by which the net gifts exceed five thousand
pesos and do not exceed twelve thousand pesos;
"Two per centum of the amount by
which the net gifts exceed twelve thousand pesos and do not exceed
thirty thousand pesos;
"Three per centum of the amount
by which the net gifts exceed thirty thousand pesos and do not exceed
fifty thousand pesos;
"Four per centum of the amount
by which the net gifts exceed fifty thousand pesos and do not exceed
seventy thousand pesos;
"Five per centum of the amount
by which the net gifts exceed seventy thousand pesos and do not exceed
one hundred thousand pesos;
"Seven per centum of the amount
by which the net gifts exceed one hundred thousand pesos and do not
exceed one hundred and fifty thousand pesos;
"Nine per centum of the amount
by which the net gifts exceed one hundred and fifty thousand pesos and
do not exceed two hundred and fifty thousand pesos;
"Eleven per centum of the amount
by which the net gifts exceed two hundred and fifty thousand pesos and
do not exceed five hundred thousand pesos;
"Thirteen per centum of the
amount by which the net gifts exceed five hundred thousand pesos and do
not exceed one million pesos;
"Fifteen per centum of the
amount by which the net gifts exceed one million pesos;
"The tax provided in this
section shall not apply in every case where the donor makes the gift in
favor of an educational institution, foundation, trust and/or the Jose
Rizal National Centennial Commission."
Sec. 2.
Section one hundred ten of Commonwealth Act Numbered Four Hundred
Sixty-Six, otherwise known as the National Internal Revenue Code, as
amended, is hereby further amended to read as follows:
"Sec.
110. Rates of tax payable by donee. — In addition to
the gift tax imposed under the preceding section, 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.
Rate
of Schedule
"(a)
When the donee or beneficiary is a spouse, a legitimate, recognized
natural, illegitimate or adopted child, or a legitimate descendant or
ascendant, or either of the adopting parents of the donor, or the
father or mother who had recognized such donor as a natural or
illegitimate child, and in every case where the donee receives the
property exclusively for education or charitable purposes, there shall
be collected from the donee upon the gifts received by him a tax equal
to the sum of the following: Provided, however, That such portion of
the gifts in favor of a spouse or a legitimate, recognized natural,
illegitimate or adopted child of the donor, who is a citizen or
resident of the Philippines, which is not in excess of five thousand
pesos shall be exempt from this tax: Provided, further, That the total
amount of gifts received by a nonprofit educational institution,
foundation, trust and/or the Jose Rizal National Centennial Commission
shall be exempt from the tax provided for in this section subject to
the condition that not more than thirty per centum of said gifts shall
be used by such donee for administrative purposes.
"Two per centum upon the first
twelve thousand pesos;
"Four per centum of the amount
by which the net gifts exceed twelve thousand pesos and do not exceed
thirty thousand pesos;
"Six per centum of the amount by
which the net gifts exceed thirty thousand pesos and do not exceed
fifty thousand pesos;
"Eight per centum of the amount
by which the net gifts exceed fifty thousand pesos and do not exceed
seventy thousand pesos;
"Twelve per centum of the amount
by which the net gifts exceed seventy thousand pesos and do not exceed
one hundred thousand pesos;
"Fourteen per centum of the
amount by which the net gifts exceed one hundred thousand pesos and do
not exceed one hundred and fifty thousand pesos;
"Sixteen per centum of the
amount by which the net gifts exceed one hundred and fifty thousand
pesos and do not exceed two hundred and fifty thousand pesos;
"Eighteen per centum of the
amount by which the net gifts exceed two hundred and fifty thousand
pesos and do not exceed five hundred thousand pesos;
"Twenty per centum of the amount
by which the net gifts exceed five hundred thousand pesos and do not
exceed one million pesos;
"Twenty-two per centum of the
amount by which the net gifts exceed one million pesos.
"Where the property is received
for educational or charitable purposes, it shall be the duty of the
person or persons in charge thereof to submit from time to time a
report of the administration and use of the property to the
Commissioner of Internal Revenue and within twenty days after demand
therefor has been made by the said Commissioner.
"There the gift is received by a
nonprofit educational institution, foundation, trust or philanthropic
organization and/or research institution or organization and/or the
Jose Rizal National Centennial Commission, it shall be the duty of the
person or persons in charge thereof to submit within ninety days after
the end of each calendar year a report to the Commissioner of Internal
Revenue on the use and disposition of the gift received during the year
which shall be subject to verification by the Commissioner.
"For the purpose of this tax, a
nonprofit educational institution, foundation, trust or philanthropic
organization and/or research institution or organization is a school,
college or university foundation, trust or philanthropic organization
and/or research institution or organization, incorporated as a nonstock
entity, without stockholders, paying no dividends, governed by trustees
who receive no compensation, and devoting all its incomes, whether
student's fees, or gifts, donations, subsidies or other forms of
philanthropy, to the accomplishment and promotion of the purposes
enumerated in its articles of incorporation.
"(b) When the
donee or beneficiary is a brother or sister who is legitimate,
acknowledged natural or illegitimate 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 subsection (a) hereof, there shall be collected the same
tax fixed in said subsection within an increase of seventy-five per
centum.
"(c) When the
donee or beneficiary is a relative within the sixth degree and not
included in subsections (a) and (b), there shall be collected the same
tax fixed in subsection (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 subsections (a) and (b), with the exception of
the spouse, there shall be collected the same tax fixed in subsection
(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 subsection (a) with an increase of four hundred per
centum, provided that if the gifts received by him exceed five hundred
thousand pesos, the excess shall be subject to tax at ninety-five per
centum.
"For the purpose of this tax,
strangers are deemed those relatives by consanguinity in the collateral
line not within the degree of relationship recognized by law in
intestate succession, and all relatives by affinity not included in
subsections (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 subsection (a) of this section and, on the excess, the
tax prescribed in this subsection. In cases of property which by the
desire of the donor should be divided among the poor, without the
designation of any particular person, 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 subsection 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 Section ninety-one."
Sec. 3. This Act shall take effect upon its
approval.
Approved: June 17, 1961
|