Donor's tax (PH)

Donor’s tax — TRAIN’s flat 6% on total gifts above ₱250k per donor per calendar year. Setting it equal to the estate rate quietly created the PH’s main freezing tool: donating appreciating assets now locks the transfer tax at today’s value and moves all future appreciation out of your estate entirely, while ₱250k/donor/year (₱500k for a couple giving to one child) passes tax-free forever. Executed at scale as annual slices of holdco shares — divisible in ways buildings aren’t. Filed on Form 1800 within 30 days of each gift.

First used in: 4.6 · Structures & estate: keeping it