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

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
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