EPARTMENT OF ACCOUNTANCY

HOLY ANGEL UNIVERSITY

 ESTATE TAX
PAYABLE
 EXCLUSIVE CONJUGAL/ TOTAL
COMMUNAL

GROSS ESTATE P XXX P XXX P XXX

Less: ORDINARY DEDUCTIONS (XXX) (XXX) (XXX)

Estate after Deductions XXX XXX XXX

Less: SPECIAL DEDUCTIONS (XXX)

NET ESTATE XXX

Less: SHARE OF SURVIVING SPOUSE *1/2 (XXX)

NET TAXABLE ESTATE XXX

Determination of Foreign Tax Credit

Foreign Net Taxable Estate

X Philippine Estate Tax Due
World Net Taxable Estate

1. Single Foreign Country

2. Multiple Foreign Country
 ESTATE TAX REQUIREMENTS
1. Estate Tax Return
2. Certified Public Accountant (CPA) Certification

The Estate Tax Return and its Contents

The executor, administrator or any of the heirs shall file in duplicate an estate
tax return under oath, setting forth the following:
a. Value of gross estate at the point of death or, in case of non-resident
alien, that part of his gross estate situated in the Philippines
b. Itemized Deductions from Gross Estate
c. The amount of tax due whether paid or still due and outstanding
 CPA CERTIFICATION
Where the value of the gross estate exceeds P5,000,000, the return shall be
accompanied by a statement certified by a Certified Public Accountant.
Content:
1. Itemized assets of the decedent with their corresponding gross value at
the time of death or, in the case of a non-resident decedent, that part
of his gross estate situated in the Philippines
2. Itemized deductions from gross estate
3. The amount of tax due whether paid or still due and outstanding
Deadline of Filing the
Estate Tax Return
One year after the date of death

Extension:
the CIR is authorized to grant, in
meritorious cases, a reasonable extension
not exceeding 30 days for filing return
Venue of Filing Estate Tax
Return
For resident decedents:
RDO where the decedent is
domiciled at the date of his death
For non-resident decedents:
RDO where the executor or
administrator is registered.if not
registered, the RDO having jurisdiction of
the decedent’s legal residence
 Where to File the Estate Tax Return?
1. Accredited Agent Bank
2. Revenue District Office
3. Collection Agent
4. Duly Authorized Treasurer of the City or Municipality in which the
decedent or administrator was domiciled at the time of his death
5. Office of the Commissioner, if the administrator or executor has no legal
residence in the Philippines
Payment of Estate Tax
Shall be paid at the time the return is filed following the
rule, “pay as you file”.
Insufficiency of Cash to Pay Tax
If there is difficulty in paying the tax, the same may be settled by:
a. Installment payment
b. Partial disposition of estate
Installment Payment
The estate tax may be paid in installment within TWO YEARS
without the imposition of interest or civil penalties
Subject to approval of the CIR, the estate tax may be paid as
follows:
a. 24 monthly payments
b. 8 quarterly payments
c. 4 semi-annual payments
d. 2 annual payments
Partial Disposition
A written request shall be filed, together with a notarized undertaking
that the proceeds thereof shall be exclusively used for the payment of
estate tax due

Failure to pay the total estate tax due out from the proceeds of said
disposition, the estate tax due shall be immediately due and
demandable subject to the applicable penalties and interest reckoned
from the prescribed deadline of filing the return.
Liability for Payment of the Estate Tax
The estate tax shall be paid by the executor or administrator before
delivery to any heir of his distributive share of the estate. Where
there are two or more executors or administrators, all of them shall
be severally liable for the payment of tax. The heir or beneficiary has
subsidiary liability for the value of the total net asset
The extent of liability shall in no case exceeds the value of the
beneficiary’s share in the inheritance.
Discharge of executor or administrator from Personal Liability

The executor or administrator shall make a written application for the commissioner of
the amount of the estate tax and discharge from personal liability.

The executor or administrator, upon payment of the amount of which he is notified,

shall be discharged from personal liability for any deficiency in the tax thereafter found
to be due and shall be entitled to a receipt in writing showing such discharge

If after the payment of the estate tax, new obligations of the decedent shall
appear, and the persons interested shall have satisfied them by order of the court, they
shall have a right to the resitution of the proportional part of the tax paid
References
• Business and Transfer Taxation
2019 edition by Rex Banggawan
• CPA Reviewer in Taxation 2018 edition
by Enrico D. Tabag
• Reviewer in Taxation by Asser S. Tamayo
• CPAR
• RESA