Page 20 - Taxation (TAX 112 A & B, BA-203)

Business, Transfer and Income Taxation

TAX 112 A & B, BA 203

Source: N. Aduana, Transfer and Business Taxation (2016)

Introduction to Transfer Tax

Properties, whether personal or real, movable or immovable, or

personally used or connected with business, are by nature transferable

from one person to another through sale, exchange, donation,

succession or inheritance. The transfer of economic assets can be

onerous or gratuitous. Onerous Transfers are subject to Business Tax.

Gratuitous Transfers are subject to Estate taxes or Donor’s Taxes.

Succession is the mode of acquiring properties, rights, and obligation
to the extent of the value of the inheritance through transfer brought about by the

death of the decedent.

Basic Elements of Succession:

1. Decedent- the deceased person whose property is transferred. A decedent
who transferred properties through written last will is called testator.

2. Estate – the property of the decedent subject to transfer through succession