Chapter 10

Question 1

Who is responsible for filing the estate tax return?
a) Any heir
b) The executor, administrator, or legal heirs
c) The BIR Commissioner
d) The bank

Answer 1

b) The executor, administrator, or legal heirs

Question 2

What is the deadline for filing the estate tax return under TRAIN Law?
a) 3 months from the decedent’s death
b) 6 months from the decedent’s death
c) 1 year from the decedent’s death
d) 2 years from the decedent’s death
c) 1 year from the decedent’s death

Answer 2

c) 1 year from the decedent’s death

Question 3

What form is used for estate tax filing?
a) BIR Form 1701
b) BIR Form 1601
c) BIR Form 1801
d) BIR Form 1901

Answer 3

c) BIR Form 1801

Question 4

Where should the estate tax return be filed if the decedent was a resident?
a) Any BIR office
b) RDO where the executor is registered
c) The RDO having jurisdiction over the decedent’s place of domicile at the time of death
d) The central office of the BIR

Answer 4

c) The RDO having jurisdiction over the decedent’s place of domicile at the time of death

Question 5

What is the estate tax rate under the TRAIN Law?
a) 5%
b) 6%
c) 10%
d) 15%
b) 6%

Answer 5

b) 6%

Question 6

What is the threshold amount that requires a CPA-certified estate tax return?
a) ₱1,000,000
b) ₱3,000,000
c) ₱5,000,000
d) ₱10,000,000
c) ₱5,000,000

Answer 6

c) ₱5,000,000

Question 7

What is required for the transfer of real properties in an estate?
a) Approval from the local government
b) Clearance from the BIR
c) Signature of all heirs
d) Approval from the court

Answer 7

b) Clearance from the BIR

Question 8

Which of the following is a deductible expense from the gross estate?
a) Personal loans of the heirs
b) Funeral expenses
c) Future income
d) Unpaid rent
b) Funeral expenses

Answer 8

b) Funeral expenses

Question 9

The estate tax return for a non-resident decedent should be filed at:
a) The executor’s RDO
b) The RDO with jurisdiction over the estate’s assets
c) The nearest BIR branch
d) The Department of Finance

Answer 9

b) The RDO with jurisdiction over the estate’s assets

Question 10

How long can the Commissioner extend the estate tax filing deadline?
a) 10 days
b) 30 days
c) 60 days
d) 90 days

Answer 10

b) 30 days

Question 11

Enumerate three entities responsible for filing the estate tax return.

Answer 11

Executor
Administrator
Legal Heirs

Question 12

List three types of assets subject to estate tax.

Answer 12

Real property
Motor vehicles
Shares of stock

Question 13

Name three ways to file estate tax returns.

Answer 13

Manual filing at RDO
eBIRForms
Authorized tax agents

Question 14

Provide three documentary requirements for estate tax filing.

Answer 14

Death certificate
TIN of the decedent
List of assets and liabilities

Question 15

List three penalties for failure to pay estate tax on time.

Answer 15

Interest
Surcharge
Civil penalties

Question 16

Name three deductions allowed from the gross estate.

Answer 16

Funeral expenses
Medical expenses
Claims against the estate

Question 17

Identify three factors that determine the estate tax due.

Answer 17

Total assets
Liabilities
Deductions

Question 18

List three ways an estate can settle tax payments.

Answer 18

Lump sum
Installment
Through properties

Question 19

Enumerate three documents required for estate tax clearance.

Answer 19

Estate Tax Return
Payment Receipt
Sworn Declaration of Heirs

Question 20

Name three penalties for estate tax evasion.

Answer 20

Interest penalties
Surcharge
Criminal liability

Question 21

The tax imposed on the net estate of a deceased person.

Answer 21

Estate Tax

Question 22

The official BIR form used for estate tax filing.

Answer 22

BIR Form 1801

Question 23

The office where a resident decedent’s estate tax is filed.

Answer 23

RDO where the decedent was domiciled

Question 24

The period within which the estate tax must be paid.

Answer 24

Within 1 year from the decedent’s death

Question 25

The document required for the transfer of a decedent’s real property.

Answer 25

Certificate Authorizing Registration

Question 26

The percentage rate of estate tax under the TRAIN Law.

Answer 26

6%

Question 27

The tax authority responsible for estate tax collection.

Answer 27

Bureau of Internal Revenue (BIR)

Question 28

The document proving the rightful heirs of the estate.

Answer 28

Extra-Judicial Settlement or Judicial Settlement

Question 29

The process of distributing a deceased person’s assets.

Answer 29

Estate Settlement

Question 30

A penalty imposed on late estate tax payment.

Answer 30

Surcharge

Question 31

What is the penalty for late filing of estate tax returns? a) 10% of tax due b) 25% surcharge plus interest c) 50% of tax due d) None

Answer 31

b) 25% surcharge plus interest

Question 32

12. What document is required for transferring shares of stock from a deceased person? a) Death Certificate b) Certificate Authorizing Registration c) Business Permit d) BIR Form 1904

Answer 32

b) Certificate Authorizing Registration

Question 33

If an estate is valued at ₱3 million, what estate tax rate applies under TRAIN Law? a) 0% b) 5% c) 6% d) 10%

Answer 33

c) 6%

Question 34

If the estate includes foreign assets, what must be included in the estate tax return? a) Affidavit of heirship b) A foreign tax clearance c) Certification from a foreign bank d) All of the above

Answer 34

b) A foreign tax clearance

Question 35

Which expenses are not deductible from the estate tax? a) Funeral expenses b) Medical expenses before death c) Future rent expenses d) Claims against the estate

Answer 35

c) Future rent expenses

Question 36

A decedent’s bank account can only be withdrawn if: a) Heirs sign an agreement b) The court approves it c) The BIR issues a clearance d) The bank allows it

Answer 36

c) The BIR issues a clearance

Question 37

What is the estate tax threshold that requires a CPA certificate? a) ₱1 million b) ₱3 million c) ₱5 million d) ₱10 million

Answer 37

c) ₱5 million

Question 38

If an estate tax return is not filed within one year, what happens? a) The estate is seized b) The heirs are fined c) A surcharge and interest apply d) The estate is taxed at 10%

Answer 38

c) A surcharge and interest apply

Question 39

Which document is not required when filing estate tax? a) Tax Clearance b) Death Certificate c) Barangay Clearance d) List of assets and liabilities

Answer 39

c) Barangay Clearance

Question 40

Who determines the fair market value of estate properties? a) The executor b) The heirs c) The BIR or Assessor’s Office d) The bank

Answer 40

c) The BIR or Assessor’s Office

Question 41

Enumerate three penalties for non-payment of estate tax.

Answer 41

Interest Surcharge Legal prosecution

Question 42

List three non-taxable transfers under estate tax rules.

Answer 42

Donations to the government Transfer to a surviving spouse Life insurance proceeds payable to a beneficiary

Question 43

Name three exemptions from estate tax.

Answer 43

Family home up to ₱10 million Social security benefits War veteran benefits

Question 44

Provide three requirements for estate tax settlement.

Answer 44

TIN of decedent Estate Tax Return (BIR Form 1801) Proof of property ownership

Question 45

List three steps in settling estate tax.

Answer 45

File estate tax return Pay estate tax Obtain Certificate Authorizing Registration (CAR)

Question 46

Enumerate three ways an estate can be distributed.

Answer 46

Extrajudicial settlement Judicial partition Will execution

Question 47

List three legal heirs according to succession laws.

Answer 47

Spouse Children Parents

Question 48

Identify three tax obligations of an estate.

Answer 48

Estate tax Income tax on estate income Capital gains tax (if assets are sold)

Question 49

Provide three documents needed for land transfer in an estate.

Answer 49

Title (TCT) Certificate Authorizing Registration (CAR) Tax Clearance

Question 50

Enumerate three steps for extrajudicial settlement of an estate.

Answer 50

Execute an agreement Publish in newspaper Pay taxes

Question 51

The form used to file estate tax in the Philippines.

Answer 51

BIR Form 1801

Question 52

The tax rate applied to the net estate under TRAIN Law.

Answer 52

6%

Question 53

The government agency responsible for collecting estate tax.

Answer 53

Bureau of Internal Revenue (BIR)

Question 54

The document that shows ownership of real estate properties.

Answer 54

Transfer Certificate of Title (TCT)

Question 55

The tax imposed on the transfer of ownership due to death.

Answer 55

Estate Tax

Question 56

The document required to sell real property from a decedent's estate.

Answer 56

Certificate Authorizing Registration (CAR)

Question 57

A process where an estate is settled without a will.

Answer 57

Intestate Succession

Question 58

The penalty for not filing estate tax within the due date.

Answer 58

Surcharge

Question 59

A person responsible for managing the estate of a deceased individual.

Answer 59

Executor / Administrator

Question 60

The document needed for bank withdrawal of a deceased person's account.

Answer 60

BIR Tax Clearance

Question 61

Who is responsible for certifying that the estate tax has been paid before a judge can authorize the distribution of shares? a) The executor of the estate b) The Commissioner c) The Register of Deeds d) The heirs

Answer 61

b) The Commissioner

Question 62

Under what condition can a Register of Deeds register a document transferring real property through inheritance? a) When the deceased's debts have been settled b) When all heirs consent to the transfer c) When a certification from the Commissioner that estate tax has been paid is shown d) When the property has been assessed for new tax value

Answer 62

c) When a certification from the Commissioner that estate tax has been paid is shown

Question 63

If a debtor owes money to a deceased person, when can they legally settle the debt with the heirs without showing estate tax certification? a) If the estate tax is pending b) If the debt is part of the inventory of the deceased’s estate c) If the heirs agree to accept payment d) If a judge authorizes it

Answer 63

c) If the heirs agree to accept payment

Question 64

What is the estate tax amnesty rate imposed under R.A. 11956? a) 3% b) 5% c) 6% d) 10%

Answer 64

c) 6%

Question 65

What is the deadline for filing the Estate Tax Amnesty Return (ETAR) under R.A. 11956? a) May 31, 2025 b) June 14, 2025 c) December 31, 2024 d) April 15, 2025

Answer 65

b) June 14, 2025

Question 66

What is the document required to prove that estate tax has been paid before inheritance transfers can be processed?

Answer 66

Estate Tax Clearance or Certification from the Commissioner

Question 67

What is the maximum extension period allowed for estate tax payment if the estate is undergoing judicial settlement?

Answer 67

Up to 5 years (if settled through courts) Up to 2 years (if settled extra-judicially)

Question 68

What government agency is responsible for collecting estate tax in the Philippines?

Answer 68

Bureau of Internal Revenue (BIR)

Question 69

What is the final withholding tax rate imposed on withdrawals from a deceased person's bank account?

Answer 69

6% of the amount withdrawan

Question 70

What form must be filed to avail of the Estate Tax Amnesty Program?

Answer 70

Estate Tax Amnesty Return (ETAR) BIR Form No. 2118-EA

Question 71

Under the Estate Tax Amnesty Program, what is the minimum estate amnesty tax for the transfer of an estate? a) ₱1,000 b) ₱5,000 c) ₱10,000 d) ₱15,000

Answer 71

b) ₱5,000

Question 72

What is the consequence if an estate tax return is not properly accomplished? a) The RDO will reject the return. b) The estate will be subject to criminal charges. c) The heirs automatically lose their inheritance. d) The Commissioner will waive penalties. a) The RDO will reject the return.

Answer 72

a) The RDO will reject the return.

Question 73

Who is responsible for ensuring that estate tax compliance documents are provided to tax authorities by lawyers and notaries? a) The executor of the estate b) The heirs of the deceased c) The Commissioner of the BIR d) The lawyer or notary public handling the estate

Answer 73

d) The lawyer or notary public handling the estate

Question 74

Under what condition can a bank allow withdrawals from a deceased person's account? a) If the account balance is below ₱500,000 b) If all joint depositors sign a sworn statement that they are still alive c) If the executor of the estate provides written authorization d) If the Commissioner certifies the estate tax has been paid Answer: b) If all joint depositors sign a sworn statement that they are still alive

Answer 74

b) If all joint depositors sign a sworn statement that they are still alive

Question 75

What is the penalty for late filing of an estate tax return? a) A surcharge of 25% plus accrued interest b) Confiscation of estate assets c) A lifetime ban on inheriting property d) A fine of ₱50,000

Answer 75

a) A surcharge of 25% plus accrued interest

Question 76

List five people or entities prohibited from transferring estate assets without estate tax certification.

Answer 76

Judge Register of Deeds Lawyer or notary public Debtor of the deceased Any person transferring shares in a corporation

Question 77

Enumerate five conditions for availing the Estate Tax Amnesty under R.A. 11956.

Answer 77

The decedent must have died on or before May 31, 2022. Estate tax remains unpaid or accrued as of May 31, 2022. A 6% estate tax amnesty rate applies. The Estate Tax Amnesty Return (ETAR) must be filed by June 14, 2025. The estate must comply with applicable tax laws at the time of death.

Question 78

List three key responsibilities of the Revenue District Office (RDO) in estate tax processing.

Answer 78

Process and review estate tax returns. Notify heirs or executors of missing or incomplete documents. Impose penalties for late filings under the Tax Code.

Question 79

Name four circumstances under which an estate tax extension may be granted.

Answer 79

The estate is facing financial hardship. Business operations are at a net loss. Important estate records were lost due to fire or disaster. Heirs cannot afford to pay the tax on ti

Question 80

What government office processes estate tax returns and imposes penalties for late filing?

Answer 80

Revenue District Office (RDO)

Question 81

What is the legal document that must be filed to avail of Estate Tax Amnesty?

Answer 81

Estate Tax Amnesty Return (ETAR) – BIR Form No. 2118-EA

Question 82

What is the interest penalty imposed on an estate for late payment of estate tax?

Answer 82

Corresponding interest accrued from the time of tax filing

Question 83

What is the maximum period allowed for deferred estate tax payment in a judicial settlement?

Answer 83

5 years

Question 84

What legal rule governs the succession, transfer, and taxation of a deceased person's estate?

Answer 84

The Civil Code of the Philippines and the National Internal Revenue Code (NIRC)