Real Estate Taxation as amended by

Train Law, CGT, DST, Estate Tax, VAT,

Donors Tax & Witholding Tax

William Floresta REC REA REB

Tax Reformation
for Acceleration
and Inclusion
1.Name of Law:
Tax Reformation for
Acceleration and Inclusion
2. Number of Law:
RA No. 10963
3. Effectivity:
1 January 2018
4. Effect on Estate Tax
 PRELIMINARY
Modes of Acquiring / (Transfering) Ownership
- Occupation
- Intellectual Creation
- Law
- Donation
- Succession
- Tradition
- Prescription
 PRELIMINARY
DONATION (Intervivos)
It is an act of liberality whereby a person
disposes gratuitously of a thing or right in favor of
another, who accepts it.

Requisite:
Is for the "donee" to accept the donation from the donor
Both of the should be living at the time of donation
 PRELIMINARY
DONATION of a Movable

It may be made orally or in writing.

An oral donation requires the simultaneous delivery of the
thing or of the document representing the right donated.
If the value of the personal property donated exceeds five
(5) thousand pesos, the donation and the acceptance shall
be made in writing, otherwise, the donation shall be void.
 PRELIMINARY
DONATION of an Immovable

In order that the donation of an immovable may be valid, it

must be made in a public document, specifying therein the
property donated and the value of the charges which the
donee must satisfy.

Requisite:
It must be in a public document, notarized and
for the "donee" to accept the donation from the donor
 PRELIMINARY
DONATION (MORTIS CAUSA)
Donations which are to take effect upon the
death of the donor partake of the nature of
testamentary provisions and shall be governed by
the rules established in the Title on Succession
Operative word: Anticipation of death
A donatio inter vivos is a gift between living people. The transfer takes place immediately and irrevocably.

A donatio mortis causa is a gift made by someone because death seems imminent. The goods or title would be
transferred with the understanding that ownership is contingent upon that death. If the death does not occur
and the donee has already taken possession, then the donee is obliged to return the gift if requested.
SUCCESSION
} A mode of acquisition by virtue of
which the property, rights, and
obligations to the extent of the value of
the inheritance, of a person are
transmitted through his death to another
or others either by his will or by
operation of law.
(transfering PRO)
(decedent-testate or intestate)
Preliminary

Estate - New Civil Code

It is the property and the transmissible rights and
obligations of a person existing at the time of his death
and those which have accrued thereto since the
opening of the succession

Estate - Tax Code

It is the statutory taxpayer of the estate tax
It is treated as a person for purpose of paying tax
(Required to have its own TIN number)
Preliminary

TRANSFER TAXES
It is an excise tax on the privilege of transferring
property gratuitously.
(excise tax or privilege tax -what is being tax is not the property but the privilege of transferring)

Two Types of transfer taxes:

Estate Tax
Donor's Tax
Preliminary

ESTATE TAX
It is an excise (privilege) tax, not a property tax
It is the tax on the exercise of the right to transfer
property at death
It is measured by the value (gross estate) of the
property
It accrues as of the date of death of the decedent.
Theories of Estate Taxation
Benefits - Received Theory-for services that the government
renders in the distrubution of the estate,

Redistribution of Wealth Theory - receipt of inheritance is

acontributing factor to theinequalities in wealth and income,
mitigatethe evils of inheritance in its original form.

Ability-to-Pay Theory- transfer assets and makes the

transferee able to pay/contribute to the government income.

State Partnership Theory-not a right but a privilege, acquired

with the protection of the
Governing Laws - Current
National Internal Revenue Code of 1997 (RA-8424)
Estate Tax (sec. 84-97)
Donor's Tax (sec. 98-104)

Tax Reform for Acceleration and Inclusion (RA-10963)

Sections 22-27

The Corporate Recovery and Tax Incentives for

Enterprises (CREATE) law
Parties in Estate Tax

Decedent (Testate, Intestate)

Heirs (Compulsory, Voluntary)

Compulsory heirs refer to the legitime reserved by law, and who succeed whether the
testator likes it or not.
Voluntary heirs refer to the person other than the compulsory heirs.

Appointee (Executor, Administrator)

Estate
Classification of Decedent
RCD - Resident Citizen Decedent
NRCD - Non-Resident Citizen Decedent
RAD - Resident Alien Decedent
NRAD - Non-Resident Alien Decedent
- With Reciprocity (WR)
- Without Reciprocity (WOR)

Sec.1 Art. IV, 1987 Constitution

 Outside Outside Outside

Include: Yes. Exclude: No

 Basic Principles

Estate tax laws rest in their essence upon the

principle that death of an individual is the
generating source from which the taxing power
takes its being, and that it is the power to
transmit or the transmission from the dead to
the living on which the tax is more immediately
based. (Lorenzo vs. Posadas, 64 Phil 353
Capital of the surviving spouse
Motives associated with life that precludes or prevent the categoty of
transfer in contemplation of death are:

1. To relieve the donor from the burden of management;

2. To save income or property taxes;
3. To settle family litigated disputes;
4. To provide independent income for dependents;
5. To see the children enjoy the property while the donor is alive;
6. To protect the family from hazards of business operations; and
7. To reward services rendered.
Question:

Mr. Matanda, aged 90 years and suffering from incurable

cancer, on August 1, 2001 wrote a will and on the same day,
made several inter-vivos gifts to his children. Ten days later,
he died.

In your opinion, are the inter-vivos gifts considered transfer in

contemplation of death purposes of determining properties to
be included in his gross estate?
Problem:
John, 60 years old, donated a parcel of land with a
FMV of Php 1M in favor of his son Peter, with the
condition that John retains the power to amend or
terminate the transfer at will. Peter died ahead of
John.

Upon John’s death, will the parcel of land be included

as part of John’s gross estate?
Famiy relation between husband and wife
In the absence of a marriage settlement, what is the
property regime of spouses?

— If marriage was contracted before the Family Code

(before 03 August 1988), then the conjugal partnership
of gains (CPG) will govern.

— If marriage contracted after the effectivity of the

Family Code (after 03 August 1988), then the absolute
community of property (ACP) will apply.
August 3, 1988
TESTAMENTARY SUCCESSION
 An act whereby a person is
permitted, with the
formalities prescribed by law,
to control to a certain degree
the disposition of his estate to
take effect after his death.
 Two of Five

1.Personal Properties:
Bank Deposit:
1. Branch Bank Account with Account Name and Account Number ;
Stock Certificate:
2.Certificate of Stock issued by
and Stock Certificate Number ;
Motor Vehicles
3 .M o t o r v e h i c l e r e g i s t e r e d u n d e r t h e n a m e o f
with Plate Number
;
(Please add other properties or interests you want include in your will)
3.That should the Lord Almighty finally summon this soul from its earthly abode, it is my wish
and desire to bequeath, grant and devise my properties above-mentioned, as follows:
a .T o m y b e l o v e d ( w i f e / h u s b a n d ) , I h e r e b y b e q u e a t h t h e p r o p e r t i e s l i s t e d a s n o s . a b o v e ;
b.To my beloved children , , and
, I hereby bequeath in equal shares, the properties listed as nos. above;
c .T o who has been my constant companion and nurse in my illness, I hereby devise the
property listed as no. above;
d.To my (brother/sister/friend/etc.) I give the property listed as no. above;
4.That should Divine Providence will it that I die ahead of my beloved husband, I hereby proclaim as
my wish and desire which my heirs, devisees and legatees should respect, that the provisions of the
foregoing Paragraph 3, Sub-Paragraphs b, c, and d be rendered temporarily without force and effect,
and my surviving (wife/husband)
 T h r e e o f F i v e
shall have full use and enjoyment of all the above-listed properties; and only upon (his/her) demise shall the
provisions of Paragraph 3, Sub- Paragraphs b, c, and d come into effect;
1 .T h a t f o r t h e p u r p o s e o f r e n d e r i n g t h i s L a s t W i l l a n d T e s t a m e n t effective thru the proper proceeding in
Court, I hereby name and constitute as Executor and Administrator of this Last Will and Testament,
and that in his/her incapacity, I hereby name as his/her substitute;
2 .T h a t t h e E x e c u t o r a n d A d m i n i s t r a t o r I h e r e b y n o m i n a t e s h a l l b e e x c u s e d f r o m p o s t i n g a n y b o n d ;
3 .T h a t I h e r e b y r e v o k e , s e t a s i d e , a n d a n n u l a n y o t h e r w i l l o r t e s t a m e n t a r y d i s p o s i t i o n I h a v e m a d e , s i g n e d ,
or proclaimed.
IN WITNESS WHEREOF, I have hereunto set my this at
.

Testator
A T T E S T A T I O N C L A U S E
We, the undersigned witnesses, do hereby affirm that the foregoing is the Last Will and
'Testament of , and we hereby certify: That she executed the same while of sound and
disposing mind and memory; That she signed the same in our presence, at the bottom of
the last page and on the left hand margin of each and every page, and we, at her behest,
have signed hereunder and on the left hand margin of each and every page, in her
presence, in the presence of the Notary Public, and in the presence of each and every one
of us this
at
.
 Four of Five

W I T N E S S A D D R E S S

(name of witness)
(name of witness) (name of witness)
Republic of the Philippines)
)S.S.
x - - - - - - - - - - - - - - - - - -x
A C K N O W L E D G M E N T
BEFORE ME, a Notary Public for and in
personally appeared the following persons, with their respective competent evidence of identity with
pictures as follows:

C O M P E T E N T
N A M E E V I D E N C E O F D A T E / P L A C E
I D E N T I T Y

Testator:

Witness:

Witness

Witness

known to me and to me known to be the same person who executed the foregoing Last Will and
Testament, which he acknowledged to me to be their own free and voluntary act and deed and which they
executed and signed in the presence of the three (3) above-named attesting witnesses, who all signed
their names as proof of their attestation on this page before the Testator and in the presence of each
 F i v e o f F i v e
a n d e v e r y o n e o f t h e m , a n d t h e y a c k n o w l e d g e d t h e s a m e
t o b e t h e i r f r e e a n d v o l u n t a r y a c t a n d d e e d .
T h i s L a s t W i l l a n d T e s t a m e n t c o n s i s t s o f . ( ) p a g e s ,
i n c l u d i n g t h e p a g e o n w h i c h t h e r a t i f i c a t i o n a n d
a c k n o w l e d g m e n t a r e w r i t t e n .

W I T N E S S M Y H A N D A N D SEAL this at
, P h i l i p p i n e s

.
N O T A R Y
P U B L I C
D o c . N o . ;
P a g e N o . ;
B o o k N o . ;
S e r i e s o f ;
That which is effected by operation of
law in the absence or default of a will.
This kind of succession may be
implemented via:
1. Judicial Settlement; or
2. Extra-judicial Settlement / Affidavit of
Self-Adjudication
Other Transfer
Transfer made by law equivalent to
testamentary disposition
1. Partition inter vivos (no need to follow
formalities of a will, exception on
entering into contract regarding future
inheritance)
2. Donation mortis causa (must follow
formalities of a will)
Gross Estate
The gross estate of a decedent shall
be comprised of the following
properties and interest therein at the
time of his/her death, including
revocable transfers and transfers for
insufficient consideration, etc.
Generally characterized by
permanency, that is, the place
to which, whenever absent for
business or pleasure, one still
intends to return.
(animus revertendi)
"with intention to relocate"
Valuation of Gross Estate
The properties comprising the gross estate shall be valued
according to their fair market value as of the time
of decedent’s death.
If the property is 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,
whichever is higher.
ESTATE TAX
A tax on the right of the deceased person to
transmit his estate to his lawful heirs and
beneficiaries at the time of death and on
certain transfers, which are made by law as
equivalent to testamentary disposition.

According to the Bureau of Internal Revenue,

the estate tax is not a tax on property but
rather imposed on the privilege of
transmitting property upon the death of the
owner.
EFFECT ON ESTATE TAX
OLD LAW
JANUARY 1, 1998 to December 31, 2017 JANUARY 1, 2018 TO PRESENT
JANUARY 1, 1998 to December 31, 2017 JANUARY 1, 2018 TO PRESENT
 Under Old Law Under TRAIN LAW
previously computed
based on a tax schedule
where a net estate
worth Php200,000.00 flat rate of 6 percent
and over was taxed
between 5 and 20
percent
Family Home Exemption
family homes valued at
Only Family Php10 million or less
are exempted;
Homes worth Php
1M were certification of a barangay
exempted captain for a decedent’s
home to be considered a
family home for the purposes
of estate tax has been
removed
 General Rule:
Php5 million
Exception:
In case of non-resident alien, only up
Php1 million to the amount of Php500,000;
removed the provision allowing only
deductions in the gross estate of a
nonresident alien when the executor,
administrator, or heir(s), as the case
may be, includes in the estate tax
return the gross estate not situated in
the Philippines.
The following are allowed, funeral expenses, judicial
among others: expenses, and medical
funeral expenses expenses are removed
(up to P200,000.00) judicial from the allowable
expenses deductions
(expenses for testamentary
or intestate proceedings)
medical expenses (up to
P500,000.00)
CPA Certification: CPA Certification:
required in returns required for returns with
exceeding the gross a gross value exceeding
value of Php2 million Php5 million
Deadline for Filing: Deadline for Filing:
within six months from within one year from
death death
Should be cash, payment of the full
no installment estate-tax liability is
option limited to only two
years
Generally not allowed, and
the bank account frozen until
estate tax is paid, except
when the administrator of
the estate or any one of the
heirs may is authorized by
the commissioner, withdraw
an amount not exceeding
P20,000.
increased allowable
withdrawals from the
deceased person’s
account to any amount,
subject to a 6-percent
final withholding tax
required not required
} Mr. Mayaman, a 70-year-old
businessman, single, died of Myocardial
Infarction or heart attack. He left a good
amount of estate and his siblings will be
his heirs. How much would be the Estate
Tax to be paid by his heirs comparing
the old tax laws and under the new
TRAIN law?
His gross estate is as follows:
Php13M Family Home
Php3M business properties
Php3M Shares of stocks
Php2M Other Assets
} Before dying he incurred
Php 1M worth of medical
expenses. During burial, the
expenses of the heirs are
about Php1 Million.
Total Gross Estate:
Php13M Family Home +
Php3M business properties +
Php3M Shares of stocks +
Php2M Other Assets = Php21 Million
Net Estate: Gross Asset minus Allowable deductions
Php21 Million
(less) Php 1M Standard Deduction
(less) Php 1M from Family Home
(less) 500,000 Medical expenses
(less) funeral expenses 200,000
(less) Judicial expenses 300,000
} Total Taxable Net
Estate ⁼ Php 18M
Refer to the old tax table above.
If the value of the net estate is Php18
million, the estate shall pay Php1,215,000.
An additional Php1.6 Million shall be
imposed, which is 20% of the excess of P10
million.
The total amount of Estate Tax to be paid would
be Php2,815,000.
Total Gross Estate: Php13M Family Home + Php3M
business properties + Php3M Shares of stocks + Php2M
Other Assets = Php21 Million
Net Estate: Gross Asset minus Allowable deduction
Php21 Million (less) Php 10M from Family Home (less)
Php5 M Standard Deduction
Total Taxable Net Estate ⁼ Php6
Million
Under the TRAIN law, from the old estate tax table, it
is now computed with 6% flat rate. Thus, 6% of the
Php6 million estate is Php360,000.
} The valuation of gifts in the form
of property shall follow the rules
set forth in computing value of
estate. Provided, That the
reckoning point for valuation shall
be the date when the donation is
made.
 Flat rate of 6 percent
2% to 15% if the donor
regardless of relationship,
and the donee are
thus the concept of
related
stranger was removed
(within 4th degree
consanguinity in the
collateral line), and 30% if
the donation was to a
stranger
gifts
gifts below P250,000 are
below P100,000.00
exempted from tax;
exempt
dowries or gifts made on
account of marriage are
no longer exempted
old new
now subject to P15 for
every P1,000;
donations or transfers of
real property, such as gifts
made to the national
government and to
qualified non-stock, non-
profit organizations,
which are exempt from
donor’s tax, will also not
be subjected to DST.
old new

a sale, exchange or other

transfer of property made in
the ordinary course of business
(a transaction that is a bona
fide, at arm’s length and free
from any donative intent), will
be considered as made for an
adequate and full consideration
in money or money’s worth.
} The computation of the donor’s tax is on a
cumulative basis over a period of one calendar year.
Husband and wife are considered as separate and
distinct taxpayer’s for purposes of the donor’s tax.
However, if what was donated is a conjugal or
community property and only the husband signed the
deed of donation, there is only one donor for donor’s
tax purposes, without prejudice to the right of the
wife to question the validity of the donation without
her consent pursuant to the pertinent provisions of
the Civil Code of the Philippines and the Family Code
of the Philippines
Donations TRAIN LAW

Car to Son 50 000 50 000

House to Daughter 200 000 200 000

Land to Neigbors 300 000 300 000

Total 550 000

Donations

Taxable 300 000

Donations

Tax 18 000
Due
Mr. X approached a real estate practitioner to assist him
in extra-judicially settling the estate of his deceased
parents. Both died on 05 April 2021 leaving Thirty Million
Pesos (Php30,000,000.00) worth of the family home.
The deceased parents have three children/heirs. Mr. X
represented that his siblings are not interested in the
real property.
What is the real estate document that the real estate
practitioner should prepare or ask a lawyer/notary
public to prepare?
}The common answer is
Extra- judicial Settlement
of Estate with Waiver of
Rights in favor of Mr. X.
i. ESTATE TAX
GROSS ESTATE – PHP30,000,000.00
NET ESTATE
GROSS ESTATE MINUS PHP10,000,000.00 (FAMILY HOME EXEMPTION)
MINUS PHP5,000,000.00 (STANDARD DEDUCTION)
= PHP15,000,000.00
* ESTATE TAX
NET ESTATE X .06 = PHP900,000.00
i. DONOR’S TAX

GROSS GIFT OF WAIVING SIBLING 1 – PHP10,000,000.00

GROSS GIFT OF WAIVING SIBLING 2 – PHP10,000,000.00

NET GIFT OF WAIVING SIBLING 1:

GROSS GIFT LESS PHP250,000.00 (EXEMPTION) = PHP9,750,000.00

NET GIFT OF WAIVING SIBLING 2:

GROSS GIFT LESS PHP250,000.00 (EXEMPTION) = PHP9,750,000.00

DONOR’S TAX OF WAIVING SIBLING 1 NET GIFT X .06 = PHP585,000.00

DONOR’S TAX OF WAIVING SIBLING 2 NET GIFT X .06 = PHP585,000.00

TOTAL DONOR’S TAX EXPENSE = PHP1,170,000.00

Renunciation by the surviving spouse of his/her share in the conjugal
partnership or absolute community after the dissolution of the marriage
in favor of the heirs of the deceased spouse or any other person/s is
subject to donor’s tax whereas general renunciation by an heir,including
the surviving spouse, of his/her share in the hereditary estate left by
the decedent is not subject to donor’s tax, unless specifically and
categorically done in favor of identified heir/s to the exclusion or
disadvantage of the other co-heirs in the hereditary estate.
 EJS WITH WAIVER EJS WITH GENERAL
ADJUSTMENTS
OF RIGHTS RENUNCIATION
WITH WAIVER OF WITH GENERAL
TITLE
RIGHTS RENUNCIATION
WAIVE IN FAVOR OF GENERALLY RENOUNCE
OPERATIVE WORDS
MR. X OUR RIGHTS.
BENEFICIARY/ EXPRESSLY
SILENT
GRANTEE MENTIONS MR. X

MR. X SIGNS ONLY AS AN

ACCEPTED BY: HEIR BUT NO NEED FOR
ACCEPTANCE
MR. X SEPARATE SIGNATURE
FOR ACCEPTANCE
ARTICLE 1018. In legal succession
the share of the person who
repudiates the inheritance shall
always accrue to his co-heirs.
 EJS WITH EJS WITH
ASPECTS WAIVER OF GENERAL
RIGHTS RENUNCIATION
ESTATE TAX PHP900,000.00 PHP900,000.00
NOT TAXABLE
DONOR’S TAX PHP1,170,000.00
PER RR 12-2018
By operation of
SOURCE OF Contractual
law (right of
SOLE RIGHT OF MR. X (donation) accretion)
Real properties not primarily held for sale to
customers or for lease in the ordinary course of
trade or business, and properties utilized for
socialized housing shall be exempted from VAT.
Previously at Php1,919,500, TRAIN lowered the
VAT exemption of residential lots to
Php1,500,000. Consequently, those previously
tax-exempt (worth Php1,500,001 to
Php1,919,500) are now subject to VAT.
Note also that beginning January 1, 2021,
residential lots will no longer be qualified for
VAT exemption.
TRAIN also lowered the VAT exemption of residential
dwellings (house and lots, condominium units) from Php
3,199,200 to Php 2,500,000. Those that were previously
tax-exempt (worth Php2,500,001 to Php3,199,200) are now
subject to VAT.
Note also that effective January 1, 2021, the exemption
shall be lowered again from Php2,500,000 to Php2,000,000,
and every three years thereafter, the amount stated shall
be adjusted to its present value using the Consumer Price
Index (CPI) as published by the Philippine Statistics
Authority (PSA).
Lease of the residential unit with a monthly rental not
exceeding P15,000 shall be exempted from VAT.
Prior to TRAIN Law: Before the implementation of the TRAIN Law, the VAT exemption threshold for
the sale of residential lots was at PHP 1,919,500, and for house and lot or other residential
dwellings, it was at PHP 3,199,500. This means sales below these amounts were exempt from VAT.

Implementation of TRAIN Law: With the TRAIN Law's enactment, there was a notable change in the VAT
exemption thresholds. For residential lots, the threshold was lowered to PHP 1,500,000.

TRAIN also lowered the VAT exemption of residential dwellings (house and lots, condominium
units) from Php 3,199,200 to Php 2,500,000. Those that were previously tax-exempt (worth
Php2,500,001 to Php3,199,200) are now subject to VAT.
Note also that effective January 1, 2021, the exemption shall be lowered again from
Php2,500,000 to Php2,000,000, and every three years thereafter, the amount stated shall be
adjusted to its present value using the Consumer Price Index (CPI) as published by the
Philippine Statistics Authority (PSA).

Recent Adjustments: The VAT exemption threshold was recently increased to PHP 3.6 million for
sales of residential lots, houses, and lots or condominium units. This adjustment aims to reflect
current market values and economic conditions, making it a significant increase to accommodate
the rising prices of real estate in the country . (Revenue Regulation No. 1-2024) Effective 1/1/2024
Powers of Attorney
The rate of DST on each power of attorney has been
increased from Five pesos (P5.00) to Ten pesos (P 10.00).
Lease
The rate of DST on leases and other hiring agreements
has been increased from Three pesos (P3.00) to Six pesos
(P6.00.; for the first Two thousand pesos (P2,000). or
fractional part thereof and the additional tax was
increased from One peso (P1.00) to Two pesos (P2.00) for
every One thousand pesos (P1,000) or fractional part
thereof, in excess of the first Two thousand pesos
(P2,000).
Mortgage
The rate of DST on every mortgage, pledge, or deed
of trust has been increased from Twenty pesos
(P20.00) to Forty pesos (P40.00), when the amount
secured does not exceed Five thousand pesos
(P5,000); and the additional tax has been increased
from Ten pesos (P10.00) to Twenty pesos (P20.00),
on each Five thousand pesos (P5.000). or fractional
part thereof in excess of Five thousand pesos
(P5,000).
Deeds of Sale, conveyances, and donation
When the consideration or value received or contracted
to be paid for such realty. after making proper
allowance on any encumbrances does not exceed One
thousand pesos (P1,000.00) Fifteen pesos (P15.00).

For each additional One thousand pesos (P1,000.00) or

fractional part thereof in excess of the One thousand
pesos (P1,000) of such consideration or value, Fifteen
pesos (P15.00)

The same rate of DST shall be paid in case of Donation.

Particulars Graduated IT Rates 8% IT Rates

May be availed by
qualified individuals
engaged in
In general, business/practice of
Applicability applicable to all profession whose
individual taxpayers gross sales/receipts
and other non-
operating income did
not exceed ₱3,000,0
Particulars Graduated IT Rates 8% IT Rates
gross sales/receipts
Basis of IT net taxable income and other non-
operating income
Allowed reduction of
₱250,000.00 from the
gross, only for
Allowable itemized
individuals whose
deductions or
Allowed Deductions income comes purely
Optional Standard
from business/practice
Deduction (OSD)
of the profession;
otherwise, no
reduction
 Graduated IT
Particulars 8% IT Rates
Rates

Percentage Tax If qualified: Not

Business Tax
(PT) or VAT subject to PT
} Professionals are those individually engaged in the practice of profession
or callings; lawyers; certified public accountants; doctors of medicine;
architects; civil, electrical, chemical, mechanical, structural, industrial,
mining, sanitary, metallurgical and geodetic engineers; marine surveyors;
doctors of veterinary science; dentist; professional appraisers;
connoisseurs of tobacco; actuaries; interior decorators, designers, real
estate service practitioners (RESP), (i.e. real estate consultants, real
estate appraisers and real estate brokers requiring government
examinations given by the Real Estate Service pursuant to Republic Act
No. 9646 and all other profession requiring government licensure
examination regulated by the Professional Regulations Commission,
Supreme Court
If gross income for the
current year did not Five percent (5%);
exceed ₱3M
If gross income is
Ten percent (10%)
more than ₱3M
RR No. 12-2018 on Estate and Donor’s Tax
RR No. 13-2018 on Value Added Tax
RR No. 4-2018 on Documentary Stamp Tax
RR No. 8-2018 on Income Tax
RR Nos. 11-2018 and 14-2018 on Withholding Tax on
commissions
Revenue Memorandum Circular No. 50-2018 on BIR Q &
A Clarifications on RR Nos. 8-2018 and 11-2018
RR No. 23-2018 on 8% Income Tax Rate Option
For more accurate assessment of the tax payable,
always consult your accountant and/or conduct a pre-
assessment with the BIR.
 Thank You!
WE HOPE TO HEAR FROM YOU SOON.