Rates of tax payable by donee.
Section 110
Section 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 years received by each donee. Rate Schedule (a) When the donee or beneficiary is a spouse, a legitimate, recognized natural 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 child, and in every case where the donee receives the property exclusively for educational 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: Three-fourths of one per centum upon the first ten thousand pesos; One and one-half per centum of the amount by which the net gifts exceed ten thousand pesos and do not exceed thirty thousand pesos; Two and one-fourth per centum of the amount by which the net gifts exceed thirty thousand pesos and do not exceed fifty thousand pesos; Three per centum of the amount by which the net gifts exceed fifty thousand pesos and do not exceed eighty thousand pesos; Three and three-fourths per centum of the amount by which the net gifts exceed eighty thousand pesos and do not exceed one hundred and ten thousand pesos; Four and one-half per centum of the amount by which the net gifts exceed one hundred and ten thousand pesos and do not exceed one hundred and fifty thousand pesos; Five and one-fourth per centum of the amount by which the net gifts exceed one hundred and fifty thousand pesos and do not exceed one hundred and ninety thousand pesos; Six per centum of the amount by which the net gifts exceed one hundred and ninety thousand pesos and do not exceed two hundred and forty thousand pesos; Six and three-fourths per centum of the amount by which the net gifts exceed two hundred and forty thousand pesos and do not exceed two hundred and ninety thousand pesos; Seven and one-half per centum of the amount by which the net gifts exceed two hundred and ninety thousand pesos and do not exceed three hundred and fifty thousand pesos; Eight and one-fourth per centum of the amount by which the net gifts exceed three hundred and fifty thousand pesos and do not exceed four hundred and twenty thousand pesos; Nine per centum of the amount by which the net gifts exceed four hundred and twenty thousand pesos and do not exceed five hundred thousand pesos; Nine and three-fourths per centum of the amount by which the net gifts exceed five hundred thousand pesos and do not exceed six hundred thousand pesos; Ten and one-half per centum of the amount by which the net gifts exceed six hundred thousand pesos and do not exceed seven hundred and twenty thousand pesos; Eleven and one-fourth per centum of the amount by which the net gifts exceed seven hundred and twenty thousand pesos and do not exceed eight hundred and fifty thousand pesos; Twelve per centum of the amount by which the net gifts exceed eight hundred and fifty thousand pesos and do not exceed one million pesos; and Twelve and three-fourths 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 Collector of Internal Revenue and within twenty days after demand therefor has been made by the said Collector. (b) When the donee or beneficiary is a brother or sister who is a legitimate or acknowledged natural 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 with an increase of one hundred per centum. (c) When the donee or beneficiary is a relative within the sixth degree and not included in subsection (a) and (b), there shall be collected the same tax fixed in subsection (a) with an increase of two hundred 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 three hundred per centum. (e) When the donee or beneficiary is a stranger, there shall be collected from the donee upon the net gifts received by him a tax equal to the sum of the following: Seven and one-half per centum upon the first ten thousand pesos; Fifteen per centum of the amount by which the net gifts exceed ten thousand pesos and do not exceed thirty thousand pesos; Twenty-two and one-half per centum of the amount by which the net gifts exceed thirty thousand pesos and do not exceed fifty thousand pesos; Twenty-six and one-fourth per centum of the amount by which the net gifts exceed fifty thousand pesos and do not exceed eighty thousand pesos; Thirty per centum of the amount by which the net gifts exceed eighty thousand pesos and do not exceed one hundred and ten thousand pesos; Thirty-three and three-fourths per centum of the amount by which the net gifts exceed one hundred and ten thousand pesos and do not exceed one hundred and fifty thousand pesos; Thirty-seven and one-half per centum of the amount by which the net gifts exceed one hundred and fifty thousand pesos; Forty-one and one-fourth per centum of the amount by which the net gifts exceed one hundred and ninety thousand pesos and do not exceed two hundred and forty thousand pesos; Forty-five per centum of the amount by which the net gifts exceed two hundred and forty thousand pesos and do not exceed two hundred and ninety thousand pesos; Forty-eight and three-fourths per centum of the amount by which the net gifts exceed two hundred and ninety thousand pesos and do not exceed three hundred and fifty thousand pesos; Fifty-one per centum of the amount by which the net gifts exceed three hundred and fifty thousand pesos and do not exceed four hundred and twenty thousand pesos; Fifty-two and one-half per centum of the amount by which the net gifts exceed four hundred and twenty thousand pesos and do not exceed five hundred thousand pesos; Fifty three and one-fourth per centum of the amount by which the net gifts exceed five hundred thousand pesos do not exceed six hundred thousand pesos; Fifty-four per centum of the amount by which the net gifts exceed six hundred thousand pesos and do not exceed seven hundred and twenty thousand pesos; Fifty-four and three-fourths per centum of the amount by which the net gifts exceed seven hundred and twenty thousand pesos and do not exceed eight hundred and fifty thousand pesos; Fifty-five and one-half per centum of the amount by which the net gifts exceed eight hundred and fifty thousand pesos and do not exceed one million pesos; and Fifty-six and one-fourth per centum of the amount by which the net gifts exceed one million pesos. For the purpose of this tax, strangers are deemed those relatives by consanguinity of the seventh or more remote degree in the collateral line, and all relatives by affinity not included in subsection (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 91.