TRANSFER TAXES (ESTATE AND DONOR’S TAXATION)

ESTATE TAX MODEL

Gross Estate xxx
Less: Allowable Deductions (xxx)
Net Estate: xxx
Apply: Estate Tax Rate %
Estate Tax Due xxx
Less: Tax Credits, if any (xxx)
Estate Tax Still due, if any xxx

Total Total Total

Exclusive Common/Conj Gross
Property ugal Property Estate
Gross Estate XX XX XXXX
Less: Ordinary Allowable Deductions (XX) (XX) (XXXX)
Net Estate Before Special Deductions XX XX XXXX
Less: Special Deductions (XXXX)
Share of Surviving Spouse (XXXX)
Net Estate: XXXX
Apply Estate Tax Rate %___
Estate Tax Due XXXX
Less: Tax Credits, if any XXXX
Estate Tax Still due, if any XXXX
GROSS ESTATE:
COMPOSITION
DECEDENT REAL PROPERTY TANGIBLE PERSONAL INTANGIBLE PERSONAL
PROPERTY PROPERTY
w/in w/out w/in w/out w/in w/out
Citizen      
Resident      
Alien

ALLOWABLE DEDUCTIONS:
 STANDARD DEDUCTIONS
 CLAIMS AGAINST THE ESTATE
 CLAIMS AGAINST INSOLVENT PERSONS
 UNPAID MORTGAGES, TAXES, AND CASUALTY LOSSES
 PROPERTY PREVIOUSLY TAXED
 TRANSFERS FOR PUBLIC USE
 FAMILY HOME
 RA 4917
 SHARE OF SURVIVING SPOUSE

ALLOWABLE DEDUCTIONS:
 STANDARD DEDUCTIONS
o NIRC: Every estate, except if the decedent is a non-resident
alien, can claim standard deduction of P 1,000,000
o TRAIN: Estate can claim standard deductions as follows:
 Resident/Citizen: P5000,000
 NRA: P500,000
  FAMILY HOME
o NIRC: Every estate, except if the decedent is NRA, can claim
family home deduction of P1000,0000
o TRAIN: Estate can claim from family home of P10,000,000.

RATES OF ESTATE TAX

NIRC:

TRAIN: 6% OF THE NET TAXABLE ESTATE

CPA CERTIFICATION REQUIREMENT

NIRC: If the gross value of the estate is more than P2,000,000

TRAIN: If the gross value of the estate is more than P5,000,000

DEADLINE OF FILING AND PAYMENT

NIRC: Six months from the decedent’s death

TRAIN: 1 year from the date of death
DONOR’S TAX MODEL
Gross Gifts xxx
Less: Deductions from Gross Gift (xxx)
Net Gifts: xxx
Apply: Donor’s Tax Rate %
Donor’s tax on the Net Gifts xxx
Less: Tax Credits, if any (xxx)
Donor’s Tax Still due, if any xxx

RATE OF DONOR’S TAX

NIRC:

TRAIN: 6% of the NET TAXABLE GIFT, exceeding P250, 000, regardless

of relationship between the donor and done.

ALLOWABLE DEDUCTION (DOWRIES)

NIRC: Dowries or gifts made on account of marriage by parents to each
of their legitimate, recognized, natural, or adopted children to the
extent of the first P10,000 shall be exempt from Donor’s tax.

TRAIN: REMOVED