1.

Enumerate and explain the amendments in the Tax Code related to Estate
taxation by TRAIN law or RA 10963?
Below is a brief discussion of the changes under estate taxation under the Train law.
1. Amendment of the Estate Tax Rate
Section 22 of the TRAIN law amends Section 84 of the Tax Code,
which provides for the estate-tax rate. Previously, a tax based on the value of
the net estate of the decedent, whether resident or nonresident of the
Philippines, was computed based on a tax schedule where an estate worth
P200,000 and over was taxed from 5 percent to 20 percent. Under the TRAIN
law, it will now be subject to a flat rate of 6 percent.
2. Amendments on Estate Tax Deductions
Section 23 of the TRAIN law amends Section 86 of the Tax Code, which
provides for the computation of the net estate or, effectively, the deductions
allowed to the gross estate of an individual. The TRAIN law removes funeral
expenses, judicial expenses and medical expenses as allowable deductions.
Instead, the law increases the Standard Deduction to P5 million, which
previously only amounted to P1 million. Only available to citizens (resident or
nonresident) and resident aliens, TRAIN law now provides that nonresident
aliens can avail themselves of a standard deduction, although only up to
P500,000. Another TRAIN law significant change from the old tax rule is that
now, family homes that are worth up to P10 million will be exempted from
estate tax. Previously, only family homes worth P1 million are exempted.