Comparison between Estate Tax and Donor’s Tax
As to Estate Tax
BIR Form BIR form 1801
Deadline for filing and Decedent died before 2018: within
payment 6 months after death
Decedent died on or after Jan. 1,
2018 (TRAIN Law): within 1 year
from date of death
Extension: The Commissioner or
his/her duly authorized
representative, shall have the
authority to grant, in meritorious
cases, a reasonable extension, not
exceeding thirty (30) days, for filing
the return
When imposed? Upon the death of the owner
notwithstanding the postponement
of the actual possession or
enjoyment of the estate by the
beneficiary.
Taxpayer The “estate” of the decedent as a
juridical person
Who actually pays the Primary liable: Administrator or
tax? executor
Secondary liable: any of the heirs
Exemption/s and/or Exemptions:
Donor’s Tax
BIR form 1800
Shall be filed within 30 days after
the date the gift is made or
completed and the tax due thereon
shall be paid at the same time that
the return is filed.
Extension: Extension of the period
to file and pay the donor's tax
return is not allowed.
Imposed on the exercise of the
donor`s right during lifetime to
transfer property to others in the
form of gift.
The person making the donation
(donor) is liable to pay the
donations tax
The donor or giver who is bound to
pay the tax, however, if the donor
fails to pay the tax within the
payment period, the donor and
donee are jointly and severally
liable.
Exemptions and/or Deductions
from Gross Gift:
Deduction/s a. Under Section 85 and 86, NIRC
-Capital or exclusive property of the
surviving spouse
-Properties outside the Philippines
of a NRA decedent
-Encumbrances on the property
donated assumed by the donee
-Diminution of gift provided by the
donor
-Gifts to the government

-Intangible personal property in the -Gifts to educational, charitable,

Philippines of NRA when the rule of religious corporations etc.
reciprocity applies

Exemptions under Special Laws:

b. Under Section 87, NIRC
-The merger of the usufruct (right
to use) in the owner of the naked
title
-The transmission from the first
heir, legatee or donee in favor of
another beneficiary in accordance
with the will of the predecessor
-The transmission or delivery of the
inheritance or legacy of the
fiduciary heir or legatee to the
fideicommissary
-All bequests, devices, legacies or
transfers to social welfare, cultural
and charitable institutions
-International Rice Research
Institute
-Ramon Magsaysay Foundation
-Integrated Bar of the Philippines
-Development Academy of the
Philippines
-National Museum
-National Library
-Archives of the National Historical
Institute
-Museum of Philippine Costumes
-Intramuros Administration

c. Under Special Laws

-Proceeds of life insurance and

benefits received by members of
the GSIS

-Benefits received by members

from the SSS by reason of death

-Amounts received from Philippines

and United States governments for
war damages

-Amounts received from United

States Veterans Administration

-Benefits received from the

Philippines and US government for
damages suffered during WW2

-Retirement benefits of
officials/employees of a private
firm

-Payments from the Philippines of

US government to the legal heirs of
deceased of WW2 Veterans and
deceased civilians for
supplies/services furnished to the
US and Philippine Army

-Proceeds of life insurance under a

group insurance taken out by
employer (not taken out upon his
life)

-Transfers by way of bona fide sales

-Transfer of property to the

National Government or to any of
its political subdivisions

-Personal Equity and Retirement

Account (PERA) assets of the
decedent-contributor

Deductions:

1. Ordinary Deductions

-Losses

-Indebtedness

-Taxes

2. Transfer for public use

3. Vanishing deductions (property

previously taxed)
 Special Deductions:
1. Standard deduction
2. Family Home Allowance
3. Amount received by heirs under
R.A. 4917
Tax Rate 6%
Tax Base The 6% is based on the value of the
net estate.
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
Can you avail of Tax Section 6 of RA 11213 states that
Amnesty? How? estate administrators, lawful heirs,
or beneficiaries have two years or
until June 15, 2021 to avail of the
estate tax amnesty. Under RA
11569, the new deadline for the
filing of estate tax amnesty returns
was set on June 14, 2023
1. Prepare the sworn ETA Return
2. File the sworn ETA return
3. Secure an Acceptance Payment
from the RDO
4. Pay the amnesty estate tax
5. Submit the acceptance payment
form and sworn ETA return to the
RDO
6%
The 6% is based on the value of the
net taxable gift (in excess of
P250,000) exempt gift made during
the calendar year, regardless of the
relationship between the donor and
the donee.
Fair market value of the total net
gifts made by a donor during the
calendar year
Section 19 of the Tax Amnesty Act
provides that any person, natural or
juridical, who wishes to avail of the
Tax Amnesty on Delinquencies shall,
within one (1) year from the
effectivity of its Implementing Rules
and Regulations (IRR), file with the
appropriate office of the BIR, which
has jurisdiction over the residence
or principal place of business of the
taxpayer, a sworn Tax Amnesty on
Delinquency Return accompanied
by a Certification of Delinquency.
Penalties and surcharges Violations of the estate tax
provisions are subject to the
applicable common penalties
prescribed under Title X (Statutory
Offenses and Penalties) of the
NIRC, as amended
Failure to file and pay donor's tax is
subject to penalties – 25% surcharge
(50% if fraudulent), 20% interest,
and compromise penalties ranging
from P200.