NO NEWS IS BAD NEWS: Did anyone get this news? Throughout 2018 and 2019, the Philippines imposed stricter tax guidelines on gifted money. Gifts over ₱250,000, or about US$4,795 as of August 2019, will be taxed at a rate of 6%. The donor is responsible for filing BIR form 1800, regardless of whether or not they reside in the Philippines. The new laws also don’t have different tax brackets based on your relationship to the recipient. Gifts to relatives are taxed at the same rate as gifts to friends. Though certain types of gifts, like gifts to some charities, are exempt.
So now no one gives money as a gift but instead consider it as a loan, how can the BIR possible control such a stupid bit of law.
Sounds like another law that will be impossible to monitor. So you send the money in multiple transactions through different avenues.
Isn't that how they are prosecuting Maria Ressa? For allegedly not reporting support received from abroad.
If someone wants to gift my wife or I $250,ooo, I will be more than happy to pay the taxes, no complaints.
Philipino pride will get in the way. No family member has ever asked for money as a gift/handout. They always use the word loan when asking for money. I should show them this law, them hand them a loan agreement with payment schedule and interest. Could I have read it wrong, I thought it was a tax on the donor not the donee. "Who Shall File The Donor’s Tax Return (BIR Form No. 1800) shall be filed in triplicate by any person, natural or juridical, resident or non-resident, who transfers or causes to transfer property by gift, whether in trust or otherwise, whether the gift is direct or indirect and whether the property is real or personal, tangible or intangible"
So does this apply - in fact, can it apply - if the gift is given abroad and then the recipient remits it to the Philippines?
