Estate Tax

Question 1

State all content information
What is estate tax?
4
2
1

Answer 1

1) What is estate tax?
2) What is the tax form for estate tax or estate tax return?
3) What is the tax rate for estate tax?
4) What are included in gross estate for resident alien decedents/citizens?

1) What are included in gross estate for non-resident decedent/non-citizens?
2) What are excluded from gross estate?

1) What will be used as basis in the valuation of property?

Question 2

1) What is ** tax?
2) What is the tax form for ** tax or ** tax **?
3) What is the tax ** for ** tax?
4) What are ** in ** estate for ** alien */?

Answer 2

1) What is estate tax?
2) What is the tax form for estate tax or estate tax return?
3) What is the tax rate for estate tax?
4) What are included in gross estate for resident alien decedents/citizens?

Question 3

1) What are included in ** ** for * decedent/?
2) What are ** from ** **?

Answer 3

1) What are included in gross estate for non-resident decedent/non-citizens?
2) What are excluded from gross estate?

Question 4

1) What will be ** as ** in the ** of **?
2) What are the ** ** for ** Tax **?

Answer 4

1) What will be used as basis in the valuation of property?
2) What are the allowable deductions for Estate Tax Purposes?

Question 5

What is estate tax?

Answer 5

It 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.

It 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.

Question 6

What is estate tax?

It is a tax on the ** of the deceased person to ** his/her estate to his/her lawful heirs and beneficiaries at the time of ** and on certain transfers, which are made by law as equivalent to ** ***.

It is not a tax on **. It is a tax imposed on the ** of ** property upon the ** of the owner.

It is based on the ** in force at the ** of death ** the ** of the actual possession or ** of the estate by the **.

Answer 6

It 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.

It 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.

Question 7

It 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.

Answer 7

Estate tax

Question 8

It is not a tax on property. It is a tax imposed on the privilege of transmitting property upon the death of the owner.

Answer 8

Estate tax

Question 9

It 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.

Answer 9

Estate tax

Question 10

What is the tax form for estate tax or estate tax return?

Answer 10

BIR Form 1801

Question 11

What is the tax rate for estate tax?

Answer 11

The rate applicable shall be based on the law prevailing at the time of decedent’s death.

Effective January 1, 2018 to present [Republic Act (RA) No. 10963]

There shall be an imposed rate of six percent (6%) based on the value of such NET ESTATE determined as of the time of death of decedent composed of all properties, real or personal, tangible or intangible less allowable deductions.

Question 12

What is the tax rate for estate tax?

The rate applicable shall be based on the law ** at the time of decedent’s **.

Effective ** **, ** to present [Republic Act (RA) No. **]

There shall be an imposed rate of * percent (%) based on the value of such ** ESTATE determined as of the time of ** of decedent composed of all **, ** or **, ** or ** less ** **.

Answer 12

The rate applicable shall be based on the law prevailing at the time of decedent’s death.

Effective January 1, 2018 to present [Republic Act (RA) No. 10963]

There shall be an imposed rate of six percent (6%) based on the value of such NET ESTATE determined as of the time of death of decedent composed of all properties, real or personal, tangible or intangible less allowable deductions.

Question 13

What are included in gross estate for resident alien decedents/citizens?

Answer 13

1. Real or immovable property, wherever located
2. Tangible personal property, wherever located
3. Intangible personal property, wherever located

Question 14

What are included in gross estate for resident alien decedents/citizens?

1. ** or ** property, wherever located
2. *** personal property, wherever located
3. *** personal property, wherever located

Answer 14

1. Real or immovable property, wherever located
2. Tangible personal property, wherever located
3. Intangible personal property, wherever located

Question 15

What are included in gross estate for non-resident decedent/non-citizens?

Answer 15

1. Real or immovable property located in the Philippines
2. Tangible personal property located in the Philippines
3. Intangible personal property - with a situs in the Philippines such as:
4. Franchise which must be exercised in the Philippines
5. Shares, obligations or bonds issued by corporations organized or constituted in the Philippines
6. Shares, obligations or bonds issued by a foreign corporation 85% of the business of which is located in the Philippines
7. Shares, obligations or bonds issued by a foreign corporation if such shares, obligations or bonds have acquired a business situs in the Philippines (i.e. they are used in the furtherance of its business in the Philippines)
8. Shares, rights in any partnership, business or industry established in the Philippines

Question 16

What are included in gross estate for non-resident decedent/non-citizens

1. ** or ** property located in the ***
2. ** ** property located in the ***
3. ** ** property - with a ** in the ** such as:
4. ** which must be ** in the ***
5. **, ** or ** issued by ** organized or constituted in the ***
6. **, ** or ** issued by a ** corporation **% of the business of which is located in the **
7. **, ** or ** issued by a ** corporation if such **, ** or ** have ** a business ** in the ** (i.e. they are used in the *** of its business in the Philippines)
8. **, ** in any **, ** or ** established in the **

Answer 16

1. Real or immovable property located in the Philippines
2. Tangible personal property located in the Philippines
3. Intangible personal property - with a situs in the Philippines such as:
4. Franchise which must be exercised in the Philippines
5. Shares, obligations or bonds issued by corporations organized or constituted in the Philippines
6. Shares, obligations or bonds issued by a foreign corporation 85% of the business of which is located in the Philippines
7. Shares, obligations or bonds issued by a foreign corporation if such shares, obligations or bonds have acquired a business situs in the Philippines (i.e. they are used in the furtherance of its business in the Philippines)
8. Shares, rights in any partnership, business or industry established in the Philippines

Question 17

What are excluded from gross estate?

Answer 17

1. GSIS proceeds/ benefits
2. Accruals from SSS
3. Proceeds of life insurance where the beneficiary is irrevocably appointed
4. Proceeds of life insurance under a group insurance taken by employer (not taken out upon his life)
5. War damage payments
6. Transfer by way of bona fide sales
7. Transfer of property to the National Government or to any of its political subdivisions
8. Separate property of the surviving spouse
9. Merger of usufruct in the owner of the naked title
10. Properties held in trust by the decedent
11. Acquisition and/or transfer expressly declared as not taxable

Question 18

What are excluded from gross estate?

1. ** **/ ***
2. ** from **
3. ** of ** ** where the beneficiary is ** appointed
4. ** of ** ** under a ** insurance taken by ** (not taken out upon his **)
5. ** damage **
6. ** by way of bona fide **
7. ** of ** to the ** Government or to any of its ** ***
8. ** ** of the ** **
9. ** of ** in the *** of the naked title
10. ** held in ** by the ***
11. ** and/or ** ** ** as ** **

Answer 18

1. GSIS proceeds/ benefits
2. Accruals from SSS
3. Proceeds of life insurance where the beneficiary is irrevocably appointed
4. Proceeds of life insurance under a group insurance taken by employer (not taken out upon his life)
5. War damage payments
6. Transfer by way of bona fide sales
7. Transfer of property to the National Government or to any of its political subdivisions
8. Separate property of the surviving spouse
9. Merger of usufruct in the owner of the naked title
10. Properties held in trust by the decedent
11. Acquisition and/or transfer expressly declared as not taxable

Question 19

What will be used as basis in the valuation of property?

Answer 19

The properties comprising the gross estate shall be valued based on their fair market value as of the time of decedent’s death.

If the property is a real property, the appraised value thereof as of the time of death shall be, whichever is the higher of –

1. The fair market value as determined by the Commissioner, or
2. The fair market value as shown in the schedule of values fixed by the provincial and city assessors.

In the case of shares of stocks, the fair market value shall depend on whether the shares are listed or unlisted in the stock exchanges. Unlisted common shares are valued based on their book value while unlisted preferred shares are valued at par value. In determining the book value of common shares, appraisal surplus shall not be considered as well as the value assigned to preferred shares, if there are any. On this note, the valuation of unlisted shares shall be exempt from the provisions of RR No. 6-2013, as amended.

For shares which are listed in the stock exchanges, the fair market value shall be the arithmetic mean between the highest and lowest quotation at a date nearest the date of death, if none is available on the date of death itself.

The fair market value of units of participation in any association, recreation or amusement club (such as golf, polo, or similar clubs), shall be the bid price nearest the date of death published in any newspaper or publication of general circulation.

To determine the value of the right to usufruct, use or habitation, as well as that of annuity, there shall be taken into account the probable life of the beneficiary in accordance with the latest basic standard mortality table, to be approved by the Secretary of Finance, upon recommendation of the Insurance Commissioner.(Sec. 5, RR No. 12-2018)

Question 20

What will be used as basis in the valuation of property?

The properties comprising the ** ** shall be valued based on their ** ** value as of the time of decedent’s ***.

If the property is a ** property, the ** value thereof as of the time of death shall be, whichever is the *** of –

1. The ** ** value as determined by the ***, or
2. The ** ** value as shown in the ** of ** fixed by the ** and city **.

In the case of ** of **, the ** ** value shall depend on ** the ** are ** or ** in the stock **. ** ** ** are valued based on their ** value while ** ** shares are valued at ** value. In ** the ** value of ** shares, ** ** shall ** be ** as well as the value assigned to ** shares, if there are any. On this note, the valuation of ** shares shall be ** from the ** of RR No. ***, as amended.

For ** which are ** in the stock **, the ** ** value shall be the ** ** between the ** and ** ** at a date ** the date of **, if none is ** on the date of ** itself.

The ** ** value of ** of ** in any **, ** or ** club (such as golf, polo, or similar clubs), shall be the ** price ** the date of ** published in any newspaper or publication of general ***.

To determine the ** of the right to **, ** or **, as well as that of **, there shall be taken into account the ** ** of the ** in accordance with the latest ** ** ** **, to be approved by the ** of **, upon ** of the Insurance **.(Sec. **, RR No. **)

Answer 20

The properties comprising the gross estate shall be valued based on their fair market value as of the time of decedent’s death.

If the property is a real property, the appraised value thereof as of the time of death shall be, whichever is the higher of –

1. The fair market value as determined by the Commissioner, or
2. The fair market value as shown in the schedule of values fixed by the provincial and city assessors.

In the case of shares of stocks, the fair market value shall depend on whether the shares are listed or unlisted in the stock exchanges. Unlisted common shares are valued based on their book value while unlisted preferred shares are valued at par value. In determining the book value of common shares, appraisal surplus shall not be considered as well as the value assigned to preferred shares, if there are any. On this note, the valuation of unlisted shares shall be exempt from the provisions of RR No. 6-2013, as amended.

For shares which are listed in the stock exchanges, the fair market value shall be the arithmetic mean between the highest and lowest quotation at a date nearest the date of death, if none is available on the date of death itself.

The fair market value of units of participation in any association, recreation or amusement club (such as golf, polo, or similar clubs), shall be the bid price nearest the date of death published in any newspaper or publication of general circulation.

To determine the value of the right to usufruct, use or habitation, as well as that of annuity, there shall be taken into account the probable life of the beneficiary in accordance with the latest basic standard mortality table, to be approved by the Secretary of Finance, upon recommendation of the Insurance Commissioner.(Sec. 5, RR No. 12-2018)