ESTATE TAX

OLD TAX CODE AMENDMENTS INTRODUCED BY TRAIN LAW &

IMPLEMENTED BY RR 12-2018
 Progressive at 5% to 20%  Flat rate of 6%
 Standard deduction of resident/citizen estate of  Php 5M/Php 500,000 for non-resident
Php 1M & none for non-resident
 Family home Php 1M  Php 10M
 Expenses, Losses, Indebtedness, Taxes: actual  None
funeral expense, or an amount equal to 5% of the
gross estate, whichever is lower, but in no case to
exceed Php 200,000 + Judicial Expenses of the
testamentary or intestate proceedings.
 Miscellaneous Provisions: no deduction shall be  No counterpart provisions
allowed in the case of a nonresident-citizen estate
of PH, unless the value of that part of the gross
estate not situated in PH Philippines is included in
the return
 Medical expenses incurred within one (1) year  None
before death not exceeding Php 500,000
 Notice of Death to be filed within two (2) months  None
 CPA Certification needed at Php 2M  Php 5M
 Bank shall not allow any withdrawal from the  Bank shall allow any withdrawal from the said
decedent’s deposit account, unless the CIR has deposit account, subject to a final withholding
certified that the taxes imposed have been paid: tax of 6%
Provided, that the administrator or any 1 of the
heirs may withdraw an amount not exceeding Php
20,000 without the said certification
 Estate tax return filing deadline-within 6 months  1 year & may be extended for 30 days in
from the date of death meritorious cases
 No counterpart provisions  Payment by installment in two (2) years in case
of insufficient cash without civil penalty &
interest
 Extension to pay may be allowed in five (5) years  Partial disposition may be allowed
(court settlement) & two (2) years (outside court)
DONOR’S TAX
OLD TAX CODE
 0%-15% & 30% on donations to strangers
 Dowries or gifts made on account of marriage &
before its celebration or within 1 year thereafter by
parents to each of their legitimate, recognized
natural, or adopted children to the extent of the 1st
Php 10,000
 No counterpart provisions
AMENDMENTS INTRODUCED BY TRAIN LAW &
IMPLEMENTED BY RR 12-2018
 6% in excess of Php 250,000.00
 None
 Notice of donation by a donor engaged in
business-In order to be exempt from donor’s tax
& to claim full deduction of donation given to
qualified-donee institution, the donor shall give
a notice of donation on every donation worth at
least Php 50,000 to the RDO within 30 days
after the receipt of qualified-donee institution’s
duly issued Certificate of Donation