The donation shall be revoked or reduced insofar as it exceeds the portion that may be freely disposed of by will.

The revocation or reduction of donation shall take into account the whole estate of the donor at the time of the birth, appearance or adoption of a child.

The revocation or reduction is authorized only if the amount or value of the property donated exceeds the disposable free portion.

The Service Incentive Leave is a five-day leave with pay for every employee who has rendered at least one year of service whether continuous or broken.

The stipulation in the contract for the allowance of a vacation to employees is merely a recognition by management and labor that a short interval of complete rest and relaxation from daily routine with the benefit of full pay is essential to the mental and physical well-being of the workmen.

The service incentive leave is commutable if not used or exhausted at the end of the year as it is aimed primarily at encouraging workers to work continuously and with dedication to the company.

Every employer shall make a report of their compliance with the 13th Month Pay through the DOLE Establishment Report Systems at reports.dole.gov.ph not later than January 15 of the following year. (13th Month Pay, 2022 Handbook of Workers’ Statutory Monetary Benefits)

Non-payment of 13th month pay provided under P.D. No. 851 and its implementing rules and regulations shall be treated as money claims cases. (Section 9, Rules and Regulations Implementing P.D. No. 851)

For real property, it shall be valued at the fair market value (FMV) of the property at the time of the gift.

The appraised FMV of the property shall be whichever is higher between the FMV as determined by the Commissioner of Internal Revenue, otherwise known as the zonal value, or as shown in the schedule of values fixed by the Provincial and City Assessors.

As for all other kinds of property, it shall be valued at the FMV of the property at the time of the gift.

A gift tax is not a property tax, but an excise tax imposed on the transfer of property by way of gift inter vivos. Donor’s tax shall not apply unless and until there is a completed gift. The transfer of property by gift is perfect from the moment the donor knows of the acceptance by the donee.

Donor’s tax is an excise tax imposed on the privilege to transfer property by way of gift based on an act of liberality. It is not a tax on the property donated, but on the privilege to transfer property.The tax for each calendar year shall be six percent (6%) computed on the basis of the total net gifts in excess of PhP250,000.00 (formerly PhP100,000.00) exempt gift made during the calendar year. For purposes of the donor’s tax, “net gift” shall mean the net economic benefit from the transfer that accrues to the donee.

When dealing with others, it is a part of every business operation to incur obligations in favor of another. These obligations may be incurred through loan transactions, or through purchases on credit, among others. It is quite common for some businesses to experience aging receivables, and collecting from debtors can be quite difficult. Our laws recognize this problem.

Donations by reason of marriage also known as donations propter nuptias are those which are made before the wedding celebration, in consideration of the same, and in favor of one or both of the future spouses. They may be made by third persons in favor of one or both the future spouses or by one spouse (donor) in favor of another (donee). If made to only one of the spouses, the same belongs to him/ her as exclusive property, except if the donor provides that it shall form part of the absolute community of properties.

Acceptance of a donation must be made during the lifetime of the donor and of the donee. Donations which are to take effect upon the death of the donor partake of the nature of testamentary provisions, and shall be governed by the rules established in the Title on Succession. When the donor intends that the donation shall take effect during the lifetime of the donor, though the property shall not be delivered till after the donor’s death, this shall be a donation inter vivos.

A donation is an act of liberality whereby a person disposes gratuitously of a thing or right in favor of another, who accepts it. Pure donation is that one which is not subject to any condition. The donation is perfected, not from the time of acceptance, but from the time of knowledge by the donor that the donee has accepted.