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5 Rules to Know about Estate Tax

There are times when people like us are not able to process the death of a loved one and already they are made to deal with the ultimately tedious process of document processing in connection with the properties or the estate left behind by the deceased. These properties of the deceased cannot be passed down to the heirs unless you have paid the estate tax. The payment of this estate tax is based mostly on a principle that states that the one who passed is one juridical personality and it is alright to transfer the property to the heirs or heir which is thus subject to transfer tax. The return or estate tax form will have to files by the Bureau of Internal Revenue to be able to pay the estate tax. These are 5 rules that will help you in the processing of your estate tax.



  • When are you supposed to file your tax estate return? The estate tax return must be filed within around 6 months from the death of the deceased. In another case, the commissioner may have authority to grant an extension which will not exceed thirty days to be able to file the return.
  • Next is where to file your tax estate return. This return will have to filed with what we call the Bureau of Internal Revenue district revenue or it can also be filed in it’s representative having jurisdiction over the place of domicile of the deceased at the time of his or her death. If by any chance the deceased would have no legal residence in the Philippines, the return need to filed in the Office of the Commissioner (Revenue District Office No. 39, South Quezon City).
  • Who will file the tax estate return? This needs to be file by the executor or administrator of the legal heirs of the decent whether or not they may be a resident of the Philippines. If by an chance there is no executor or administrator who is appointed, or acting within the Philippines, then any person who may be in actual or constructive possession of any property of the deceased.
  • When and where? Once the return is filed, the estate tax which is due must be paid to the BIR Authorized Agent Bank where the return is supposed to be filed. If for instance there are no AAB’s, the payment will be made directly to the revenue Collection officer.
  • Examples of documents that need to be submitted would be the Notice of death, Certificate of death, Latest true copy of tax declaration of real properties at the time of death, etc…




Images from: estateplanandassetprotection and faireconomy