ESTATE TAX:

 Rates of estate tax:

 200k and below- exempt
 Over 200k- 6%
 Deductions allowed to estate of citizen or resident:
- Removes judicial and funeral and medical expenses
- Increases standard deduction from 1M to 5M
- Family home value as deduction increases from 1M to 10M
 Also removes cert of brgy that family home is decedent’s family home
 Deductions allowed to non-resident aliens:
- Standard deduction of 500k
- Removes judicial and funeral and medical expenses
- Removes allowance for expenses, losses, debts and taxes
 Removes Notice of Death to be filed
 Estate tax return must be filed within one year from decedent’s death
 Includes payment by installment if estate has insufficient cash to pay estate tax:
1. By installment
2. Within 2 years from statutory date of payment
3. No civil penalty or interest shall be imposed
 Final withholding tax on withdrawal from bank deposit of decedent subject to 6% FWT
 Requirement for Statement Certified by CPA increased from 2M to 5M

DONOR’S TAX

 Rates of estate tax:

 250k and below- exempt
 Over 250k- 6%
 Removes distinction of computation of donor’s tax between donation to a relative or stranger
 Sale, exchange or other transfer of property made in the ordinary course of business are not subject
to donor’s tax
 Removes dowry or gifts made on account of marriage are removed from those exempt from donor’s
tax