FS2223-ESTATETAX-08

BSA 2105 Atty. F. R. Soriano

ESTATE TAX

COMPUTATION OF GROSS ESTATE.

DEDUCTIONS FROM THE GROSS ESTATE,
AND NET TAXABLE ESTATE OF
AN UNMARRIED/SINGLE NON- RESIDENT ALIEN DECEDENT

Pro-forma formula in determining taxable estate of single/unmarried non-resident alien decedent

(Indicate description of each property to be included in the GE, and P xxx

show FMV at the amount column)*
Philippine gross estate xxx
Less: Ordinary deductions
Deductions (excluding transfer for
public use and vanishing deduction)
applicable to Philippine gross estate** P xxx
Transfer for public use xxx
Vanishing deduction xxx
Total ordinary deductions xxx

Special deduction***
Standard deduction 500,000.00 xxx ****

Net taxable estate P xxx

*Properties located in the Philippines only, both tangible and intangible properties, if there is no
reciprocity; tangible properties only, if there is reciprocity.
**Computed using the following formula:

World ordinary deductions for

Philippine gross estate Amount of
claims against the estate, claims
x deductions
World gross estate against insolvent persons, unpaid =
allocated to
mortgage, taxes and losses
Philippine estate

Note: World gross estate is the total of Philippine gross estate and gross estate located outside the
Philippines. World ordinary deductions include all the deductions mentioned, whether relating to
Philippine estate only, or to estate outside the Philippines only, or both.
*** Special deductions do not include Family Home and Amount received by the heirs under R.A. 4917.
****Total of ordinary deductions and the Standard Deduction of P500,000.00.

Formula in computing vanishing deduction

Initial value P xxx
Less: Mortgage assumed and paid by the present decedent xxx
Balance xxx
Less: Proportionate deduction
Balance/Philippine gross estate x Total ordinary
deductions (See Note below.) xxx
Basis of vanishing deduction P xxx
Multiplied by appropriate rate %
Vanishing deduction P xxx

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 FS2223-ESTATETAX-08
Note: Total ordinary deductions refer to the amount of ordinary deductions determined
proportionately and transfer for public use.

Standard deduction
This deduction is equivalent to P500,000.00. No substantiation is required in order that it may be
claimed as deduction.

Note: Discussions pertaining to ordinary deductions from the gross estate of a single/unmarried citizen and
resident alien decedents are applicable to single/unmarried non-resident alien decedent, unless otherwise
stated.

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