Tax Updates - July 2018

Monthly Tax Updates | July 2018

BUREAU OF INTERNAL REVENUE (“BIR”) ISSUANCES

A. REVENUE REGULATIONS

THE VALUATION OF GIFTS FOR PURPOSES OF DONOR’S TAX SHALL BE THE SAME AS THAT OF GROSS ESTATE FOR ESTATE TAX PURPOSES; THE RECKONING POINT FOR VALUATION SHALL BE THE DATE WHEN THE DONATION IS MADE.

  • Donated property shall be valued according to its fair market value (“FMV”) at the time of donation.
  • FMV of Real property – FMV as determined by BIR or FMV as fixed by provincial or city assessor, whichever is higher.
  • FMV of shares of stock depends on whether the shares are listed or unlisted in the stock exchange
    • Unlisted common shares – valued based on book value
      • In determining the book value of common shares, appraisal surplus shall not be considered as well as the value assigned to preferred shares, if there are any;
      • The shares are exempted from valuation.
    • Unlisted preferred shares -valued at par value.
    • Listed shares – FMV is the arithmetic mean between the highest and lowest quotation.
    • Units of participation in any association, recreation or amusement club (such as golf, polo or similar clubs) – valued at bid price nearest the date of donation published in any newspaper or publication of
      general circulation. Revenue Regulations No. 17-2018, July 10, 2018.

B. REVENUE MEMORANDUM CIRCULARS

REVENUE MEMORANDUM CIRCULAR NO. 062-18, DATED JUNE 28, 2018, CLARIFIES THE REQUIREMENTS ON THE WITHDRAWAL FROM THE BANK DEPOSIT ACCOUNT/S OF A DECEASED DEPOSITOR/JOINT DEPOSITOR WITHOUT THE REQUIRED ELECTRONIC CERTIFICATE AUTHORIZING REGISTRATION (E-CAR).… Read More

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