Estate Tax by Nnn
CHAPTER II ESTATE AND DONOR’S TAXES*
A. ESTATE TAX 1. Taxpayer and Tax Base The estate tax is imposed on the transfer of the decedent’s estate to his lawful heirs and beneficiaries based on the fair market value of the net estate at the time of the decedent’s death. It is not a tax on property. It is a tax imposed on the privilege of transmitting property upon the death of the owner. 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. 2. Computation of Net Estate a. Gross estate The value of the gross estate of the decedent includes the value at the time of his death of all property, real or personal, tangible or intangible, wherever situated.1 In the case of a nonresident decedent who at the time of his death was not a citizen of the Philippines, only that part of the entire gross estate situated in the Philippines is included in the taxable estate.2 Gross estate3 includes property falling under any of the following categories: (1) Decedent’s interest, to the extent of his interest therein at the time of his death;
(2) Transfers in contemplation of death;
* 1 2
Title III of the National Internal Revenue Code (NIRC) of 1997, as amended. Sec. 85, NIRC of 1997.
No estate tax shall be collected in respect of intangible personal property if (a) the decedent at the time of death was a citizen and resident of a foreign country which did not impose a transfer tax of any character, in respect of intangible personal property of citizens of the Philippines not residing in that foreign country; or (b) if the laws of the foreign country of which the decedent was a citizen or resident allows a similar exemption from transfer or death taxes of every character in respect of intangible personal property owned by citizens of the Philippines not residing in that foreign country. (Sec. 104, Ibid)
3
Sec. 85(a) to (g), supra.
1
(3) Revocable
A. ESTATE TAX 1. Taxpayer and Tax Base The estate tax is imposed on the transfer of the decedent’s estate to his lawful heirs and beneficiaries based on the fair market value of the net estate at the time of the decedent’s death. It is not a tax on property. It is a tax imposed on the privilege of transmitting property upon the death of the owner. 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. 2. Computation of Net Estate a. Gross estate The value of the gross estate of the decedent includes the value at the time of his death of all property, real or personal, tangible or intangible, wherever situated.1 In the case of a nonresident decedent who at the time of his death was not a citizen of the Philippines, only that part of the entire gross estate situated in the Philippines is included in the taxable estate.2 Gross estate3 includes property falling under any of the following categories: (1) Decedent’s interest, to the extent of his interest therein at the time of his death;
(2) Transfers in contemplation of death;
* 1 2
Title III of the National Internal Revenue Code (NIRC) of 1997, as amended. Sec. 85, NIRC of 1997.
No estate tax shall be collected in respect of intangible personal property if (a) the decedent at the time of death was a citizen and resident of a foreign country which did not impose a transfer tax of any character, in respect of intangible personal property of citizens of the Philippines not residing in that foreign country; or (b) if the laws of the foreign country of which the decedent was a citizen or resident allows a similar exemption from transfer or death taxes of every character in respect of intangible personal property owned by citizens of the Philippines not residing in that foreign country. (Sec. 104, Ibid)
3
Sec. 85(a) to (g), supra.
1
(3) Revocable