Tax Charges before Tax Charges after the

Estate Planning the TRAIN LAW TRAIN LAW
Tools

1. Use of “and/or - Withholding tax – - Withholding tax – 20%

in Bank 20% for Peso/ 7.5% for for Peso/ 15% for foreign
Accounts” foreign currency currency savings account
savings account

 Estate tax -  Estate tax- 6% pf net

minimum of 20% of estate
2. Will 
the net estate Probate fees depending
Probate fees on the value of the
depending on the property
value of the property For notarial wills,
For notarial wills, additional charges for
additional legal costs notary public and lawyer
will be charged fees.
including notary public
and lawyer fees

 Donor’s tax –  Donor’s tax – 6% of net

3. Donations  maximum of 15% of donations for gifts
net donations for above 250k per year
gifts above 100k per regardless of
year; 30% for gifts relationship of donor.
to strangers.  Documentary stamp tax
Documentary stamp for donation of real
tax – 15 php per deed. property
 
  Tax Charges before the Tax Charges after the
Estate TRAIN LAW TRAIN LAW
Planning
Tools

Capital gains tax -  6% Capital Gains Tax – 6%

for capital asset of for capital asset of
individual % corporation individual & corporation
Income tax – 5% – 32% Income tax – see TRAIN
4. Sale 
for ordinary asset of an LAW
individual Corporate tax – 30% for
Corporate tax – 30% for ordinary asset of a
ordinary asset of a corporation
corporation Documentary stamp
Documentary stamp tax – 15php for every
tax -  15php for every 1000ph of the gross
1000php of the gross selling price/ zonal
selling price/zonal value value or FMV whichever
or FMV whichever is is higher for capital and
higher for capital and ordinary asset.
ordinary asset. Transfer tax of .25%
- .75% of the selling
price or zonal value or
FMV whichever is
 higher for capital asset.

Estate tax - minimum of Estate tax- 6% pf net

5. Family 20% of the net estate estate
Holding Probate fees depending Probate fees depending
Company on the value of the on the value of the
property property
For notarial wills, For notarial wills,
additional legal costs additional charges for
will be charged notary public and
including notary public lawyer fees.
and lawyer fees

  Tax Charges before Tax Charges after

Estate Planning the TRAIN LAW the TRAIN LAW
Tools

Estate tax – Estate tax – 6% of

maximum of 20% of the trust asset
the trust asset. Trust fee-
6. Revocable
Trust fee- usually .5% per
Personal
Management usually .5% per annum based on
Trust annum based on market value of
market value of asset managed or
asset managed or Php10,000
Php10,000 whichever is higher.
whichever is higher. Income tax – 20%
Income tax – 20% on net income of
on net income of trust asset
trust asset. Documentary stamp
 Documentary tax – 40php when
stamp tax – 20php the amount does
when the amount not exceed
does not exceed Php5,000;
Php5,000; Php20,000 on each
Php10,000 on each succeeding
succeeding 5k or Php5,000 or
fractional part. fractional part.

Donor’s tax – Donor’s tax –

7. Irrevocable max of 15% of the max of 6% of the
Personal trust asset. trust asset.
Management Trust fee – Trust fee – usually
Trust usually .5% per .5% per annum
annum based on based on market
market value of value of asset
asset managed or managed or 10k
10k whichever is whichever is
higher higher

  Tax Charges Tax Charges after

Estate Planning before the TRAIN the TRAIN LAW
Tools LAW

Income tax – 20% Income tax – 20%

on net income of on net income of
7. Irrevocable trust asset trust asset
Personal Documentary Documentary
Management stamp tax – stamp tax –
Trust 20php when the 20php when the
(Continuation) amount does not amount does not
exceed 5k ; 10k exceed 5k ; 10k on
on each each succeeding
succeeding 5k or 5k or fractional
fractional part. part.

Estate tax – max Estate tax – max

8. Life of 20% of policy of 6% of policy
Insurance value (if value (if
beneficiary in the beneficiary in the
policy is policy is
revocable) revocable)
Donor’s tax – max Donor’s tax – 6%
of 15% of policy of policy value (if
value (if beneficiary in the
beneficiary in the policy is
policy is irrevocable)
irrevocable) Insurance
Insurance charges –
charges – depending on the
depending on the product, age of
product, age of insured
insured Documentary
Documentary stamp tax –
stamp tax – depending on the
depending on the value of the
value of the insurance
insurance