Train Law - ESTATE Taxation
Train Law - ESTATE Taxation
Train Law - ESTATE Taxation
4917
Net share of the surviving spouse in the conjugal partnership or community property
ESTATE TAX
b. Claims of the deceased against insolvent persons where the value of the
decedent’s interest therein is included in the value of the gross estate
Net share of the surviving spouse in the conjugal partnership or community property
- Real property
- Personal property
Less: Deductions:
- Claims against the estate – debt instrument was notarized; statement showing
disposition of proceeds of loan, if contracted within 3years from date of death
- Amount received by heirs under RA 4917, provided such amount is included in gross
estate of decedent
)
ESTATE TAX
The properties subject to Estate Tax shall be appraised based on its fair market value at the time of the
decedent's death.
The appraised value of the real estate shall be whichever is higher of the fair market value, as
determined by the Commissioner (zonal value) or the fair market value, as shown in the schedule of
values fixed by the Provincial or City Assessor.
If there is no zonal value, the taxable base is the fair market value that appears in the latest tax
declaration.
If there is an improvement, the value of improvement is the construction cost per building permit or the
fair market value per latest tax declaration
ESTATE TAX
1. Standard deduction – A deduction in the amount of Five Million Pesos (P5,000,000.00) shall be
allowed as an additional deduction without need of substantiation.
3. Claims of the deceased against insolvent persons where the value of the decedent’s interest therein is
included in the value of the gross estate
7. The family home - fair market value but not to exceed P10,000,000.00
8.Amount Share of the surviving spouse (50% of net conjugal estate)
NONResident ALIEN
- Real property
- Personal property
Less: Deductions:
Claims against the estate – debt instrument was notarized; statement showing
disposition of proceeds of loan, if contracted within 3years from date of death
TRANSFER TAXES
ESTATE TAX
THE LAW THAT GOVERNS THE IMPOSITION OF ESTATE TAX
It is a well-settled rule that estate taxation is governed by the
statute in force at the time of death of the decedent. The estate tax accrues as of the death of
the decedent and the accrual of the tax is distinct from the obligation to pay the same. Upon the
death of the decedent, succession takes place and the right of the State to tax the privilege to
transmit the estate vests instantly upon death.
ESTATE TAX
ESTATE TAX
RATE OF ESTATE TAX
The transfer of the net estate of every decedent, whether resident or non-
resident of the Philippines, as determined in accordance with the NIRC, shall be subject to an
estate tax at the rate of six percent (6%).
ESTATE TAX
What are included in gross estate?
For citizen /resident alien decedents:
a) Real or immovable property, wherever located
b) Tangible personal property, wherever located
c) Intangible personal property, wherever located
For nonresident not citizen decedents:
a) Real or immovable property located in the Philippines
b) Tangible personal property located in the Philippines
c) Intangible personal property - with a situs in the Philippines
ESTATE TAX
What are excluded from gross estate?
GSIS proceeds/ benefits
Accruals from SSS
Proceeds of life insurance where the beneficiary is irrevocably appointed
Proceeds of life insurance under a group insurance taken by employer (not taken out upon his
life