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Philippines estate tax

Philippines Estate Taxes

 

 

It is always good to know about estate taxes. For the Philippines, whether or not you are a resident of the country, the estate tax would be payable upon any transfer of the net estate of every decedent. This would not follow however if the decedent of the Philippines at that time of his or her death, there will only be a portion of the estate in the Philippines which will be provided or included in the taxable estate. A good example would be if a decedent was a resident of the United States and the was able to become a naturalized United States citizen before his or her death,  then only the properties owned in the Philippines will be subjected to the estate tax. All the properties which were or are owned in the United States would not be subjected to the estate tax. So the next question would be the basis of the net estate tax. How is this computed for? This is where the law is to come in. According to the law, the estate tax is to be appraised at it’s so called “fair market value” depending on the time of death. This would be either the fair market value being determined by the commissioner, including the “zonal value” and the “assessed value”. This all depends on which value would come out at a higher rate. Most of the time, the zonal value would come out at a higher rate compare to the assessed value. It even happens that oftentimes, the zonal value would approximate the high market price, given that many properties are being sold based on their zonal value. Of course it should be pointed out that at that time, the fair market value is what was prevailing during that time of the decedent’s passing. Now we always have to remember the deadline that will be given to file the estate tax return, which would be all told 6 months from the death of the decedent. There are ways to extend this deadline. If ever the commissioner were to notice that the payment would impose hardship on the estate or the heirs, this could be extended to not later than 5 years.

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