Deed of Donation (Philippines) — Sample, Donor's Tax, Free Generator

DEED OF DONATION

KNOW ALL MEN BY THESE PRESENTS:

That I, [ROSARIO T. BAUTISTA], of legal age, Filipino, widow, and a resident of [21 Kalayaan Avenue, Barangay Diliman, Quezon City], hereinafter referred to as the DONOR,

                              — and —

[MARK ANGELO T. BAUTISTA], of legal age, Filipino, single, and a resident of [the same address], hereinafter referred to as the DONEE,

WITNESSETH: That —

WHEREAS, the DONOR is the absolute and registered owner of a parcel of land situated in [Barangay Poblacion, Tanauan City, Batangas], more particularly described as follows:

     "A PARCEL OF LAND (Lot 8, Block 2 of the subdivision plan Psd-04-000456), situated in
     the Barangay of Poblacion, City of Tanauan, Province of Batangas, containing an area of
     THREE HUNDRED (300) SQUARE METERS, more or less, covered by Transfer Certificate of
     Title No. T-45678 of the Registry of Deeds for the Province of Batangas."

WHEREAS, the DONEE is the [son] of the DONOR, and the DONOR, out of love and affection for the DONEE and out of liberality, desires to donate the said property to the DONEE;

NOW THEREFORE, for and in consideration of the love and affection which the DONOR bears for the DONEE, and of the DONOR's liberality, the DONOR does hereby freely, voluntarily and irrevocably GIVE, TRANSFER and CONVEY, by way of donation inter vivos, unto the DONEE, their heirs, successors and assigns, the above-described parcel of land together with all the improvements thereon.

1. The DONOR warrants that they are the absolute owner of the property donated and that the same is free from all liens and encumbrances.

2. The donation is made out of pure liberality and without any consideration whatsoever, and shall take effect during the lifetime of the DONOR.

3. The DONOR reserves for themselves [the right to live upon and enjoy the fruits of the property for the remainder of their natural life (usufruct)]. / [No reservation is made and full ownership passes to the DONEE upon acceptance.]

4. The donor's tax due on this donation shall be for the account of the [DONOR], and the DONEE shall shoulder the registration fees and the expenses of transfer.

5. The DONOR declares that this donation does not impair the legitime of any compulsory heir, and that should it be found to do so, the donation shall be reduced accordingly as provided by law.

ACCEPTANCE BY THE DONEE

I, [MARK ANGELO T. BAUTISTA], the DONEE named above, do hereby ACCEPT this donation made in my favour by the DONOR, and I express my sincere gratitude for the DONOR's generosity and liberality.

IN WITNESS WHEREOF, the parties have hereunto set their hands this ____ day of __________, 20____, at [Quezon City], Philippines.

______________________________          ______________________________
[ROSARIO T. BAUTISTA]                    [MARK ANGELO T. BAUTISTA]
Donor                                    Donee

SIGNED IN THE PRESENCE OF:

______________________________          ______________________________
Witness                                  Witness

REPUBLIC OF THE PHILIPPINES )
CITY OF [QUEZON CITY] ) S.S.
x----------------------------------------x

ACKNOWLEDGMENT

BEFORE ME, a Notary Public for and in [Quezon City], this ____ day of __________, 20____, personally appeared the above-named parties, exhibiting to me their competent evidence of identity, known to me and to me known to be the same persons who executed the foregoing Deed of Donation, and they acknowledged to me that the same is their free and voluntary act and deed.

WITNESS MY HAND AND SEAL on the date and at the place first above written.

                                        ______________________________
                                        Notary Public

Doc. No. ______;
Page No. ______;
Book No. ______;
Series of 20____.

The formalities that make or break a donation

Philippine law is unusually strict about donations, because a donation gives something away for nothing and the law wants certainty that the donor meant it and that the donee accepted. Article 749 of the Civil Code requires that a donation of immovable property be made in a public instrument — a notarised deed — specifying the property donated and the value of any charges the donee must satisfy. The acceptance must be made in the same deed or in a separate public instrument; and if it is separate, the donor must be notified of the acceptance in an authentic form, and that step must be noted in both instruments. Article 746 adds the timing requirement that ties it all together: the acceptance must be made during the lifetime of the donor and of the donee. An acceptance signed after the donor has died comes too late, which is why a separate acceptance left for another day is the version that fails.

For movable property the rules are lighter: a donation of personal property worth ₱5,000 or less may be made orally with simultaneous delivery, but above that, both the donation and the acceptance must be in writing, otherwise the donation is void (Civil Code, art. 748).

Donor's tax: rate, threshold and deadline

The ₱250,000 threshold applies to the donor's total net gifts for the year, not per donee and not per donation. Donating to three children in the same year aggregates. Spreading gifts across calendar years is a legitimate planning approach; splitting a single transaction into artificial parts within one year is not.

Note also that the donor's tax is computed on a cumulative basis through the year. The first donation in January uses up the exemption; a second donation in November is taxed from the first peso, and the return for it reports the aggregate. Keep a running record of what you have given and when — donors who file each gift as though it were the only one in the year end up with an assessment.

Donation, sale, or inheritance — which is cheaper?

Legitime, collation and reduction

You cannot donate away what the law reserves for your compulsory heirs. Donations that impair the legitime are reduced when the estate is settled. Donations to a compulsory heir are also generally brought into collation — treated as an advance on their inheritance — when computing shares. This is why a deed of donation to one child is so often the origin of a family dispute after the parent dies. If you are donating to one of several children, take advice and consider documenting your intention clearly.

Legal basis: Civil Code of the Philippines, arts. 725–773, particularly arts. 746 (acceptance during the lifetime of the donor and the donee) and 748–749 (form of donations), 750–752 (limits, including that no person may give more by donation than they may give by will), 760–764 (revocation), 771 (reduction of inofficious donations) and 1061–1077 (collation); NIRC secs. 98–104 as amended by RA 10963, and sec. 103 as further amended by RA 11976 (Ease of Paying Taxes Act) on where the return is filed and the tax paid; Revenue Regulations No. 6-2024 on reduced penalties for micro and small taxpayers.

Registering the donation

1. 1

   Notarise the deed with the acceptance in it

   Both donor and donee appear before the notary.

2. 2

   File BIR Form 1800 and pay the donor's tax within 30 days

   Section 103 of the Tax Code as amended by RA 11976 lets you file and pay either electronically or manually — through any authorised agent bank, through an RDO by way of a Revenue Collection Officer, or through an authorised tax software provider, subject to the BIR's implementing rules. Bring the deed, the title, the tax declaration and the parties' TINs.

3. 3

   Obtain the electronic Certificate Authorizing Registration

   The Register of Deeds will not act without the eCAR.

4. 4

   Pay the local transfer tax

   At the LGU treasurer, within the LGU's deadline.

5. 5

   Register with the Register of Deeds

   Present the deed, the eCAR, the tax clearance and the owner's duplicate title. A new title issues in the donee's name.

6. 6

   Update the tax declaration

   At the assessor's office, so future real property tax bills go to the donee.

What if…

1. 1

   …the donee is a minor

   Acceptance is made by the parents or legal guardian on the minor's behalf. For a donation with charges or conditions, court approval may be needed. Take advice.

2. 2

   …the donor wants to keep living there

   Reserve a usufruct in the deed. The donee gets naked ownership now, the donor keeps the right to use and enjoy the property for life. Say so expressly — it is not implied.

3. 3

   …the donor changes their mind

   A donation inter vivos is generally irrevocable once accepted. The Civil Code allows revocation only on specific grounds: birth or reappearance of a child, non-fulfilment of conditions, or ingratitude, each with its own prescriptive period.

4. 4

   …the property is conjugal

   Both spouses must consent. A donation of community or conjugal property by one spouse alone is void, subject to narrow exceptions such as moderate donations for charity or family occasions.