ABOUT REAL ESTATE TAX

I ordered 2 copies of PSA Death Certificate online. I hope available na sa PSA. Otherwise, the
Certified True Copy from St. Peters will be accepted naman. If the PSA version is available, it will
be delivered no later than Wednesday next week. Please do pay the real estate tax for
Malumanay. Note that this is different from ESTATE TAX.
 Okay so I recall dumating na last week and you gave me a copy of it!
 Kung kaya ni Mikka na siya ang mag bayad ng real estate tax sa malumanay the better
kasi one less absent sa office for me. However, we need to make sure:
o We get the receipt from her
o Get back all the paperwork we lend to her so she can pay:
 Death certificate
 Past real estate tax payment receipts
 Mom’s government ID’s
 Change of title document from Mamang to Mom and Tito

 I can photocopy the files above tomorrow (Friday) para she no longer has to

Regarding Alfonso, wala kami pinagusapan ni Tito J about it. It’s their turn to pay for it. I can talk
to them and ask them to do this (Eng or Den).
 You told me earlier today na Mikka will pay for it. Same comment as above!

ABOUT CHANGING THE NAME ON THE TITLE

There are 2 ways--- judicial or extra judicial. As I was consulting Trisha Fernandez about the
recognition of my divorce in the Philippines, I mentioned that mom passed away and we have to
work on the estate tax etc. Straight up she recommended extra judicial. I will forward the
proposal she sent me so you will have an idea of the fees. Note that her proposal covers my
needs and the extrajudicial portion. She sent the proposal some time ago, so her fees may have
increased a little. Essentially, what we are after are these:

o Legal memorandum regarding settlement of estate through extrajudicial

settlement;

o Extrajudicial Settlement Agreement;

 Alright but wala atang attachment yung email mo! Did you send her proposal in a
separate email?

ABOUT FILING FOR ESTATE TAX RETURN AND PAYING FOR IT

I outlined the steps we need to do.

STEP 1: GATHER THE DOCUMENTS WE NEED

  TIN of estate (which can be done by filing Notice of Death at the BIR) – Meron na tayo
 Photocopy and original death certificate – Meron na tayo
 Deed of Extra-Judicial Settlement of the Estate
 Property Documents
 Photocopy of Certified True Copy of Transfer Certificate of Title (TCT),
Condominium Certificate of Title (CCT), Original Certificate of Title (OCT).
 Certificate of Registration of Motor Vehicle together with official receipt / cost of
acquisition for the purpose of applying the 20% annual depreciation rate.
Source: https://www.lawphil.net/administ/bir/rmo/rmo15_03anxa6.pdf
 For Deductions: -- I don’t get this part kasi from what I know sa new law hindi na
required ang step na ito. Ito supposedly yung pina daling part… That;s what I read while
researching at least….
 Medical receipts
 Baranggay recognition of family home in Malumanay
 St. Peters receipt (funeral expenses)
 Trisha receipt (extrajudicial settlement)
 Statement from CPA

 a. Itemized Assets of the decedent at time of his death

 b. Itemized Deduction from gross estate

 c. The Amount of tax due whether paid or still due and outstanding.

 Please read this link thoroughly. It comes from a law office specializing in these types of
estate matters. You will notice nga na Barangay recognition is no longer needed. And
that deductions is now fixed at P10,000,000.00, whereas in the past it was
P1,000,000.00 plus expenses like medical bills, etc..

http://www.realttorney.com/2018/01/26/7-important-changes-train-did-for-estate-taxation/

Here is a copy of the EXACT law:

https://www.senate.gov.ph/republic_acts/ra%2010963.pdf
- You can refer to section 23, Provision 7 (Page 25) – Basically P10,000,000.00 for
a family home is outright deducted… if the value of the estate exceeds
P10,000,000.00 then the excess will be subject to a 6% to estate tax.
- So as an example, if mom’s total estate is P15M, the 5M of that will be subject to
a 6% estate tax or P300,000.00

TASK ASSIGNMENTS
Please look for an accountant. Please ask if other than the 5M standard deduction on the Family
Home, can we still get other deductions such as medical expenses, funeral expenses, and lawyer
and CPA fees? – Refer to my comment above.
I can be the one to coordinate with Trisha on the legal aspect after you review her proposal. I
can also visit the baranggay office to get the certificate that our house is a Family Home
(ancestral). I can also go to City Hall and inquire how we can get the title of our house. – I
suppose pag bayad ng real estate tax ng Malumanay puwede na mag inquire about the
certificate? Puwede mo samahan si Nikka?

Please be the one to collect/arrange all the medical receipts. – Refer to my comment above.

Let’s get all these done by June. I don’t think the CPA and Trisha Extrajudicial aspects will take a
long time. We don’t have a lot of properties. – I can try but again refer to my comment above.
In reality it’s just malumanay ang Tagaytay. The car (RAV4) if I’m not mistaken is so old that its
value is lower than the threshold. We can ask the lawyer. In any case, the fair market value of
the RAV4 I guarantee is now less than P250,000 so 6% of that is less than P12,000.00

The value naman of the property in Tagaytay should be divided by 2 because of tito. I don’t
expect that property to be big.

Malumanay naman to give you an idea… refer to the attached excel file and go to SHEET 6 (DO
004-16) and scroll down to ROW 3471… There you will see that that the section of MAlumanay
st. between mayaman st. and malamig st. has a zonal value of Php25,000/sq.m …I recall mom
told me that our property (just ours) is roughly 200sq.m….so that’s Php5,000.000.00 for the
land… double that for the house and you get roughly P10,000,000.00 … I personally believe our
property is worth anywhere between P12M – P14M…

STEP 2: FILING OF RETURN AND PAYMENT OF ESTATE TAX (Inheritance Tax) --- LETS TAKE CARE
OF THIS IN AUGUST AT THE LATEST AFTER WE ARE DONE WITH STEP 1
 Where: Like the Notice of Death, the estate tax return shall be filed with the RDO (or
other offices authorized by the BIR) in the city or municipality where the decedent was
a resident at the time of death. --- This is where I got our estate TIN… sa Quezon Avenue
ito. I mean yung branch natin kng hindi ako nagkakamali…

 When: The executor, administrator, or the heirs should file Estate Tax Return (BIR Form
1801) to BIR Revenue District Office (RDO) where the decedent was domiciled at the
time of death. Due Date of Filing of Estate Tax Return is within one (1) year from the
decedent’s death and shall be paid at the time the return is filed. The commissioner or
any Revenue Officer authorized by him shall have the authority to grant a reasonable
extension not exceeding thirty (30) days.

 Filing: To file your Estate Tax in the Philippines you need to fill out the BIR tax return
form 1801. You’ll also need several pieces of documentation. Visit the BIR website for
the full list of what you need for your situation.

 Payment: The estate tax shall also be paid at the same time the return is filed. The BIR
may allow the payment by installment. However, the computation of estate tax shall
 always consider the entire estate and the corresponding penalty shall be imposed on
any amount paid after the due date. The BIR may allow an extension of time to pay the
estate tax. The extension should not exceed 5 years in case the estate is settled through
the court, or two years in case the estate is settled extrajudicially through the execution
of an extrajudicial settlement. The late payment of estate tax will lead to the imposition
of 25% to 50% surcharge, 20% interest per year, and a compromise penalty.

 Computation
 Gross Estate (Total value of all properties of descendant at time of death, include
real and personal property regardless of location. Personal property includes
tangible and intangible property like stocks

 Deductions - The estate tax will not be based on the entire estate but on
the net taxable estate. To arrive at net taxable estate, a number of
deductions/expenses are allowed to be deducted from the gross estate.
We need to ask CPA or BIR if we are still eligible for these under the TRAIN
law. Still I included all of these requirements in our STEP 1.
 -- same comment as above… the TRAIN law from my readings simplified
the filing and the deductions to 6% (pinarehas nila sa capital gains tax) of
any property of the deceased such as the RAV4 and the Tagaytay property.
Malumanay is only 6% of any amount in excess of P10,000,000.. .since
ancestral home classification.
 What you are enumerating below is the old law. Amended na siya effective
January 1, 2018… again here is the link to the amendments:
 https://www.senate.gov.ph/republic_acts/ra%2010963.pdf

 Funeral expenses (maximum of P200,000)

 Fees of the accountant and/or lawyers who assisted the heirs
 Unpaid debts of the decedent
 Standard deduction of P1,000,000 (no substantiation required) ---
under TRAIN LAW this is 5M
 Medical expenses within one year before death (maximum of
P500,000) -- need receipts
 Family home (maximum of P1,000,000) - need to be certified by
Baranggay

 Net Taxable Estate -This is the remaining amount after deducting the
applicable deductions/expenses from the gross estate. As of January 1,
2018 - The net estate of every decedent, whether resident or non-resident
of the Philippines shall be subject to an estate tax at the rate of six percent
(6%). Instead of having a complicated tax schedule with different rates,
TRAIN reduces and restructures the estate tax to a low and single tax rate
 of 6% based on the net value of the estate with a standard deduction of P5
million and exemption for the first P10 million for the family home.

 Valuation - If the property is a real property, the appraised value as of the

time of death shall be, whichever is higher of:
- The Fair Market Value (FMV) as determined by the Commissioner (BIR)
- The Fair Market Value (FMV) as shown by the Provincial and City
assessors.

 Who will file - Estate tax return shall be file by the executor, administrator
or any of the legal heirs.

 Do we need a CPA? -Estate Tax returns showing a gross value exceeding Five
Million Pesos (P5,000,000) shall be supported with a statement duly certified to by
a Certified Public Accountant containing the following:
a. Itemized Assets of the decedent at time of his death
b. Itemized Deduction from gross estate
c. The Amount of tax due whether paid or still due and outstanding.

 How to pay the estate tax by cash installment:

A. The cash installments shall be made within two (2) years from the date
of filing of the estate tax return.
B. The estate tax return shall be filed within one year from the date of
decedent’s death.
C. The frequency (i.e. monthly, quarterly, semi-annually, or annually),
deadline and amount of each installment shall be indicated in the estate
tax return, subject to the prior approval by the BIR.
D. In case of lapse of two years without the payment of the entire tax
due, the remaining balance thereof shall be due and demandable subject
to the applicable penalties reckoned from the prescribe deadline for
filing the return and payment of estate tax.
E. No civil penalties or interest may be imposed on estate permitted to
pay the estate tax due by installment.
SOURCE: http://reliabooks.ph/estate-tax-in-the-philippines-under-train-
law/

 Recent amnesty does not apply to our situation. FYI.

https://news.mb.com.ph/2019/05/31/bir-releases-regulations-on-estate-tax-
amnesty/

ABOUT COLLECT BENEFITS/DEPOSITS

 Good idea sa BPI central account. Oks paki share nalang details sa akin. – Copy kukunin
ko yung ATM sa Monday.. share ko account number…

SSS Death Benefit - yup ako nag sign noon sa St. Peters. UGH I hate SSS. Super sakit nila
sa bangs. Pwede ba ang HR niyo na umasikaso nito? – I already asked pero hindi daw
puwede. Dapat yung kin ang gagawa nito. Please tell me when you plan to do this

PNB -- Ikaw na asikaso nito Ju. Yes, ang plan ko dito is sa Monday I will deposit muna the
check na P70,000 galing sa coop… then at the end of the same week (e.g., Friday)
pupunta ako sa PNB Circle branch to widthraw the whole amount or moms entire
account.

Marcos benefit -- sige we can go there together. Ma would be happy na meron pa

dumadating na mga ganito. Sayang at hindi sya mismo ang makaka-claim. Let me
know when para I can block time for this. Hirap din ako these days kasi I need to juggle
work, medical stuff for me and DD, tapos new school si DD and all the nuances that go
with changing settings. – This is July 8. Best go very early like 8AM when they open.
Sorry pero I will be in Cebu on this day dahil sa Birthday ni Jade… July 8 pa ng midnight
ang uwi ko sa Manila…. Her parents invited me and nakakahiya naman tumanggi.

Pero let's get this over and done with. Oks oks.

Thanks!
Pinay