Administrative Requirements

Question: Kailan magbabayad ng estate tax, meron bang extension, kailan required and CPA na mag
attach ng kanyang pirma sa estate tax, at ano ang requirements usually ‘pag magbabayad ng estate tax,
at sino ang magbabayad.

General Rule: the time for payment of estate tax is imposed or should be paid and filled by the executor,
administrator or the heirs.

Ang pagbabayad ay iba sa payment. Hindi ibig sabihin na nag file ka ay magbabayad ka na rin.

Ang Commision on higher revenue lang at yung inassign nya ang pwedeng mag extend ng payment sa
pagbabayad ng tax

Filing is one year from the date of death and can only be extend up to 30 days for meritorous cases only.

Payment – pwede ka manghingi ng extension sa BIR

- Judicial settlement (nasa korte) – up to 5 years only (not to exceed 5 years)

- Extra-judicial settlement (out of court) – up to 2 years only

*sa old tax code bawal installment, sa train law pwede installment up to 2 years

Place of payment

Resident – domiciled (kung saan sya permanently nauwi hindi kung saan sya namatay)

Non-resident – where the executor or administrator is registered

Paano kapag hindi nakapag bayad ng estate tax sa tamang oras? Edi may penalty

- 25% kapag no fraudulent intent on tax payer (hindi sadya, pasensya ka na ha, godbless)
- 50% kapag may false, malice or fraudulent intent
- 12% interest

Bukod sa may penalty ka nan a 25% may babayaran kapang interest kaya ‘wag ka magpahuli,
magbayad ka kaagad!

Halimbawa, nalate ka ng 1 month kasi nalimutan mong tanga ka tapos 100K estate tax payable mo
times 25% = 25000, plus 12% interest (100K times 12% time 1/12) = 1000
So, total na babayaran mo is 126K na.

Kapag nagkamali ka sa ‘pag file ng form may penalty din na 25%

BIR FORM NO. 1801 – estate tax return

*Kapag ang gross estate ng decedent ay 5,000,000 or more kailangan i-certified ng CPA (train law)

- itemized asset of the decedents (value non at the time of death) (inventory of assets including its
value)

- mga deductions na cliname nya (the deductions claimed from the gross estate)
- Magkaano yung tax due na babayaran ng decedent includeing the tax credit (the estate tax due and
estate tax credit)

Withdrawal from deceased bank account

*sa old tax code bawal, sa train law pwede but subject sa 6% withholding tax