Bureau of Internal Revenue
Republic of the Philippines

ESTATE TAX

Contents

Description
Tax Forms
Documentary Requirements
Tax Rates
Procedures
Dealines
Related Revenue Issuances
Codal References
Frequently Asked Questions

DESCRIPTION

Estate Tax is a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfers, which are made by law as equivalent to testamentary disposition. It is not a tax on property. It is a tax imposed on the privilege of transmitting property upon the death of the owner. The Estate Tax is based on the laws in force at the time of death notwithstanding the postponement of the actual possession or enjoyment of the estate by the beneficiary.

TAX FORM

BIR Form 1801 - Estate Tax Return

 

DOCUMENTARY REQUIREMENTS

1) Notice of Death duly received by the BIR, if gross estate exceeds P 20,000 for deaths occurring on or after Jan. 1, 1998; or if the gross estate exceeds P 3000 for deaths occurring prior to January 1, 1998

2) Certified true copy of the Death Certificate

3) Deed of Extra-Judicial Settlement of the Estate, if the estate is settled extra judicially

4) Court Orders/Decision, if the estate is settled judicially;

5) Affidavit of Self-Adjudication and Sworn Declaration of all properties of the Estate

6) A certified true copy of the schedule of partition of the estate and the order of the court approving the same, if applicable

7) Certified true copy(ies) of the Transfer/Original/Condominium Certificate of Title(s) of real property(ies) (front and back pages), if applicable

8) Certified true copy of the latest Tax Declaration of real properties at the time of death, if applicable

9) "Certificate of No Improvement" issued by the Assessor's Office declared properties have no declared improvement or Sworn Declaration/Affidavit of No Improvement by at least one (1) of the transferees

10)Certificate of Deposit/Investment/Indebtedness owned by the decedent and the surviving spouse, if applicable

11)Photo copy of Certificate of Registration of vehicles and other proofs showing the correct value of the same, if applicable

12)Photo copy of certificate of stocks, if applicable

13)Proof of valuation of shares of stocks at the time of death, if applicable

- For listed stocks - newspaper clippings or certification from the Stock Exchange

- For unlisted stocks - latest audited Financial Statement of issuing corporation with computation of book value per share

14)Proof of valuation of other types of personal property, if applicable

15)Proof of claimed tax credit, if applicable

16)CPA Statement on the itemized assets of the decedent, itemized deductions from gross estate and the amount due if the gross value of the estate exceeds two million pesos, if applicable

17)Certification of Barangay Captain for claimed Family Home

18)Duly notarized Promissory Note for "Claims against the Estate" arising from Contract of Loan

19)Accounting of the proceeds of loan contracted within three (3) years prior to death of the decedent

20)Proof of the claimed "Property Previously Taxed"

21)Proof of claimed "Transfer for Public Use"

22)Copy of Tax Debit Memo used as payment, if applicable

Additional requirements may be requested for presentation during audit of the tax case depending upon existing audit procedures.

TAX RATES

 

Effective January 1, 1998 up to Present

If the Net Estate is
Over	But not Over	The Tax Shall be	Plus	Of the Excess Over
	P    200,000.00	Exempt
P   200,000.00	500,000.00	0	5 %	P     200,000.00
500,000.00	2,000,000.00	P 15,,000.00	8 %	500,000.00
2,000,000.00	5,000,000.00	135,000.00	11 %	2,000,000.00
5,000,000.00	10,000,000.00	465,000.00	15 %	5,000,000.00
10,000,000.00		1,2l5,000.00	20 %	10,000,000.00

 

Effective After July 28, 1992 up to December 31, 1997

If the Net Estate is
Over	But not Over	The Tax Shall be	Plus	Of the Excess Over
	P    200,000.00		0%
P   200,000.00	500,000.00		5 %	P     200,000.00
500,000.00	2,000,000.00	P 15,000.00	8 %	500,000.00
2,000,000.00	5,000,000.00	135,000.00	12 %	2,000,000.00
5,000,000.00	10,000,000.00	495,000.00	21%	5,000,000.00
10,000,000.00		1,545,000.00	35 %	10,000,000.00

 

Effective Before July 28, 1992

If the Net Estate is
Over	But not Over	The Tax Shall be	Plus	Of the Excess Over
	P    10,000.00	Exempt
P   10,000.00	50,000.00	3%		P   10,000.00
50,000.00	75,000.00	P 1,200.00	4 %	50,000.00
75,000.00	100,000.00	2,200.00	5 %	75,000.00
100,000.00	150,000.00	3,450.00	10%	100,000.00
150,000.00	200,000.00	8,450.00	15 %	150,000.00
200,000.00	300,000.00	15,950.00	20%	200,000.00
300,000.00	400,000.00	35,950.00	25%	300,000.00
400,000.00	500,000.00	60,950.00	30%	400,000.00
500,000.00	625,000.00	90,950.00	35%	500,000.00
625,000.00	750,000.00	134,700.00	40%	625,000.00
750,000.00	875,000.00	184,700.00	45%	750,000.00
875,000.00	1,000,000.00	240,950.00	50%	875,000.00
1,000,000.00	2,000,000.00	303,450.00	53%	1,000,000.00
2,000,000.00	3,000,000.00	833,450.00	56%	2,000,000.00
3,000,000.00		1,393,450.00	60%	3,000,000.00

 

Effective September 15, 1950 to December 31, 1972

 

Estate and Inheritance Tax

	From	To	ESTATE	INHERITANCE
5,000.00	0	5,000.00	Exempt	Exempt
7,000.00	5,000.00	12,000.00	1.0%	2%
18,000.00	12,000.00	30,000.00	2.0%	4%
20,000.00	30,000.00	50,000.00	2.5%	6%
20,000.00	50,000.00	70,000.00	3.0%	8%
30,000.00	70,000.00	100,000.00	5.0%	12%
50,000.00	100,000.00	150,000.00	7.0%	14%
100,000.00	150,000.00	250,000.00	9.0%	16%
250,000.00	250,000.00	500,000.00	11.0%	18%
500,000.00	500,000.00	1,000,000.00	13.0%	20%
	1,000,000.00	over	15.0%	22%

 

Effective October 1, 1946 to September 14, 1950