Intro Hi guys! Welcome to my channel. Welcome to another episode of EDT Talks. My topic in this particular video is pertaining to transfer taxes.
But before we proceed, let me thank first lahat ng mga subscribers natin, mga followers natin, mga nagpapaabot ng mga magagandang mensahe, kaya appreciation sa ating mga videos. So of course, nakakapag-motivate sa atin yun para lalo nating pagbutihin ang ating mga videos. So thank you very much! So sa mga hindi pa nagsusubscribe, I hope you will subscribe very soon.
And aside from that, let me remind yung mga estudyante, undergrad, na ang tax pa lang na kinukuha ay income taxation. So this video is not for you, kasi this video is a topic discussed in your next tax subject na ang description or title ay... transfer and business taxation. So, kumbaga, tax 2 ito. Okay?
Yung sa income tax, tax 1. Although, iba na yung course code sa K-12, diba? Pero actually, yun yun. So, this video is intended to those who are taking the tax 2, transfer and business taxation, as well as reviewies para sa CPA board exam natin.
Okay? So ano-ano yung mga didiscuss ko dito? So I will be discussing here the definition of transfer taxes, what are the different types of transfers, what are the types of donations, kailan magte-take effect ang transfer tax, and so on and so forth. So yun yung mga didiscuss ko.
Katuloy ito ng topic na succession. So, kumbaga, ito yung introduction to estate tax nyo. Okay?
So, let's proceed. Transfer taxes. Before we proceed to the definition of transfer taxes, let's describe first the two types of transfers for taxation purposes. So, for taxation purposes, kasi importante ito, there are two types of transfers.
First one, gratuitous transfer. The other one is onerous transfer. Siguro naman, kahit hindi ko i-define, may idea na kayo.
Pag sinabi mong gratuitous transfer, ang consideration ay wala. Zero. In short, free.
E ano ba tawag mo kapag nagbigay ka ng for free? Ah, you're donating. So this pertains to donation. So there are two types of transfer, gratuitous transfer or donation.
The other one is onerous. Pag sinabi mong onerous, ah. Merong kapalit yan. Kaya limbawa, 1,000 yan.
So, may kapalit. May consideration. So, hindi ito free.
Kaya hindi ito free. So, kung hindi free, may kapalit. May bayad.
Ang tawag mo, sale. O kaya barter. O kaya exchange.
Kaya there are two types of transfers. For taxation. purposes. Gratuitous transfer, that's donation. Honorous transfer, that's sale, barter, or exchange.
And there are actually two types of donations, i-discuss natin mamaya. So, itong transfer taxes ay taxes on gratuitous transfer. Tapos, ito naman, okay, ang tax naman nito ay business taxes.
Kaya sa tax to nyo, Ang topic ay transfer taxes, so that's donation. Saka business taxes, yan yung sale, barter, or exchange. Okay, let's define.
What is a transfer tax? So, actually, binanggit ko na, diba? So, kapag ka-donation yan, for free, walang kapalit, eh, ang tax niyan ay transfer tax. Kaya, as you can see here, transfer taxes are taxes on gratuitous transfer.
Pag sinabi natin gratuitous, walang kapalit, which is actually donation. Sabi natin, dalawang klase ang donation. Depende kung kailan magte-take effect ang donation. Kailan ba magte-take effect yung donation?
Sir, habang buhay si donor at habang buhay si doni, ang tawag mo inter-vivos donation. At ang tax niyan ay donor's tax. So si Pedro, minamahal si Ana.
Bumili ng jewelry si Pedro para kay Ana. Pedro is the donor, Ana is the doni. Okay, pareho silang buhay. Provided tinanggap ni Ana yung donation ni Pedro, so there's a donation. Since buhay sila, ang tawag doon, inter-vivos donation.
Kailan magka-take effect? During their lifetime. So, ngayong na-execute yung donation.
At ang tax noon ay donor's tax. So, of course, we will have a separate video for this. However, okay, tandaan mo sa succession na topic.
Diba sabi natin sa succession? Succession is a mode of acquiring property, rights, and obligation upon death of the donor or the grantor, yung namatay. So yung namatay ang donor dito. Kailan mapupunta sa'yo yung mana? Kapag ka namatay na yung nagpamana sa'yo.
So the effectivity is upon death of the donor. Ang tawag mo doon mortis causa succession. Mortis causa. Donation mortis causa o disperting to succession na na-discuss na natin sa separate video. At ang tax naman nun, estate tax.
Kaya itong dalawang ito ang different types of transfer taxes. So pag sinabi natin transfer taxes, donors tax yan o kaya ay estate tax. Okay?
So I hope maliwana. So ano ba ang nature ng transfer tax? So sabi natin, transfer taxes ay taxes on gratuitous transfer.
So ano ba ang tinataks dito? Diba sabi natin sa tax principles, ang mga pwedeng itaks ay number one, persons, personal tax yun. Number two, mga pag-aari, property tax. Number three, mga pribileyo, mga rights, excise tax yun. So therefore, there are basically three types of taxes.
Personal tax. Okay? Property tax. Saka excise tax.
Tax on privilege rights. So, how do you describe donor's tax? How do you describe estate tax?
Eh diba, eto nag-donate, eto nag-pamana. Hindi lahat nakakapag-donate. Kahit gusto mong mag-donate, wala ka namang ma-donate.
Kahit gusto mong mag-pamana, wala ka namang ma-ipamana. Kaya pag ikaw ay nakapag-donate, ikaw ay nakapag-pamana, Ah, napaka-privilege yung mong tao. Okay? So, yung privilege na yun, it is tax, subject to tax.
Therefore, ang tawag sa dalawang yan ay excise taxes. If you describe the two, excise taxes. Yun yung nature.
Kaya, as you can see, nakalagay dito, on this basis, transfer tax is classified as excise tax. So, the subject matter, ang tinataks sa transfer tax, Hindi yung i-donate. Hindi yung ipinamana. Ang tinataks ay yung privilege, yung right ni nag-donate na mag-donate.
Okay? Parang income tax. Ang sinasubject sa tax dyan ay yung right or privilege na mag-earn ng income. Kaya excise tax din yun.
So, hindi ito personal tax. Ang tinataks... Kaya ito, yung tinataks dito, hindi yung person. Ang tinataks dito, yung privilege to transfer gratuitously.
Hindi ito property tax. Ang tinataks dito, hindi yung denonate, hindi yung pinamanan. Ang tinataks dito, the privilege of the transferor to gratuitously transfer. Okay? Which takes effect upon his death.
Kasi nga, kung hindi upon his death, donor's tax yun. Okay? Pero since transfer tax ang pinag-uusapan natin, dapat dalawa pag-uusapan natin. Upon death, which is the estate tax, and during the lifetime of the donor and the doni, kaya yan yung donor's tax.
Inter vivos, saka mortis causa. So since, sabi dito, which takes effect at the time of death of the transferor, or during the lifetime of the donor and the doni. Tinatawag na inter-vivos donation subject to donor's tax. Ito naman, mortis causa donation subject to estate tax.
Although the amount of transfer tax is based on the net estate or net gift, it shall not be construed as property tax. So, ulitin ko, ano ang nature ng donor's tax, estate tax? O ano ang nature ng prop ng transfer tax?
The answer is, it is an excise tax. Tax on the privilege or rights. To, to what?
To transfer. To transfer gratuitously. Okay, next.
What is the law governing the transfer tax? What is the law governing estate tax? What is the law governing donor's tax? So, ito naman, ang topic ay estate tax. So, since papunta tayo sa estate tax na topic.
So, syempre, halimbawa, 2020 na ngayon. O, train law. Kailan ba nag-take effect ang train law? 2018. So, train law 2018. Possible ba, sir, na namatay yan 2017 tapos ngayon lang magbabayad ng estate tax?
Yes. So kung ganito, sir, ano ang i-apply? Yung train law na o prior to train law? Dapat prior to train law.
Kasi namatay siya 2017, hindi pa yan train law. So, therefore, ang batas na i-apply mo ay kung ano yung batas na applicable nung siya ay nag-donate, nung siya ay nagpamanan. So, since...
nagpamana siya bago mag-train law, ah, dapat, ang i-apply pa rin natin na batas ay yung batas bago mag-train law. Okay? So, therefore, as you can see in your screen, it is a well-settled rule that estate taxation is governed by the law enforced at the time of the death of the decedent.
Okay? Kaya, dapat, kung nag-take effect, Kaya ang donation upon debt, dapat yung estate tax should also be due or should also accrue at the time of debt. Pero sir, sipa i-reviewin na ako sir. Alam na alam ko na meron tayong one year na mag-file ng estate tax return. Yung one year na yan ay palugit lang para bayaran mo yung tax.
Pero yung estate tax is due na upon debt. Right? Upon debt.
Kaso, you are allowed to file and pay the estate tax within one year. Magkaiba naman yung accrual date, saka yung period you are required to file and pay without penalty or interest. So kung ikaw ay magbabayad ng estate tax within one year, Wala kang penalty. Walang penalty, walang surcharge. Okay?
Pero actually, due na siya right away upon death. Hindi lang natin normally binabayaran yung upon death dahil hindi naman practical. So assuming, namatayan ka. Ibig mo sabihin, pagkamatay niya ngayon.
Ibig mo sabihin, you need to go to the BIR right away and pay the tax. You cannot do that. Dapat alamin mo muna ano-ano bang pag-aari niya. Etc. etc.
So it takes time. Okay? Pero it doesn't mean na magiging due lang yung estate tax pag nagbayad ka na.
No. It is already due upon debt, but you are allowed to file and pay within one year without incurring any interest or penalties. Okay?
So, balikan natin. So, it is a well-settled rule that estate taxation is governed by the statute enforced at the time of the debt. The estate tax accrues.
as of the date of death of the decedent and the accrual of the tax is distinct from the obligation to pay the same. Upon death of the decedent, succession takes place and the right ng gobyerno na itax yung pribilehyong yun ay pwede na agad. Can you follow?
Okay!