Estate Tax - BIR

Estate Tax - Bureau of Internal Revenue
Assessment Performance and Monitoring Division 1
Index for Estate Tax:
Description
Tax Form
Documentary Requirements
Tax Rates
Procedures
Related Revenue Issuances
Codal Reference
Frequently Asked Questions
Description
Estate Tax is a tax on the right of the deceased person to transmit his/her estate
to his/her lawful heirs and beneficiaries at the time of death and on certain
transfers, which are made by law as equivalent to testamentary disposition. It is
not a tax on property. It is a tax imposed on the privilege of transmitting
property upon the death of the owner. The Estate Tax is based on the laws in
force at the time of death notwithstanding the postponement of the actual
possession or enjoyment of the estate by the beneficiary.
[return to index]
Tax Form
BIR Form 1801 - Estate Tax Return

Guidelines
[return to index]
Documentary Requirements
Mandatory Requirements [additional two (2) photocopies of each

document]:
1. Certified true copy of the Death Certificate;

2. Taxpayer Identification Number (TIN) of decedent and heir/s;
3. Notice of Death (only for death prior to January 1, 2018) duly received by
the BIR, if gross taxable estate exceeds P20,000 for deaths occurring on
January 1, 1998 up to December 31, 2017; or if the gross taxable estate
exceeds P3,000 for deaths occurring prior to January 1, 1998;
4. Any of the following: a) Affidavit of Self Adjudication; b) Deed of Extra-
Judicial Settlement of the Estate, if the estate has been settled extra-
judicially; c) Court order if settled judicially; d) Sworn Declaration of all
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properties of the Estate;
5. A certified copy of the schedule of partition and the order of the court
approving the same within thirty (30) days after the promulgation of such
order, in case of judicial settlement;
6. Proof of Claimed Tax Credit, if applicable;
7. Certified Public Accountant (CPA) Statement on the itemized assets of the
decedent, itemized deductions from gross estate and the amount due if the
gross value of the estate exceeds five million pesos (Php5,000,000.00) for
decedent’s death on or after January 1, 2018 or two million pesos
(Php2,000,000.00) for decedent’s death from January 1, 1998 to
December 31, 2017;
8. Certification of the Barangay Captain for the claimed Family Home (If the
family home is conjugal property and does not exceed Php10 Million, the
allowable deduction is one-half (1/2) of the amount only);
9. Duly Notarized Promissory Note for "Claims Against the Estate" arising
from Contract of Loan;
10. Accounting of the proceeds of loan contracted within three (3) years prior
to death of the decedent;
11. Proof of the claimed "Property Previously Taxed";
12. Proof of the claimed "Transfer for Public Use";
13. Copy of Tax Debit Memo used as payment, if applicable;
For Real Properties, if any [additional two (2) photocopies of each

document]:
1. Certified true copy/ies of the Transfer/Original/Condominium

Certificate/s of Title of real property/ies (front and back pages), if
applicable;
2. Certified true copy of the Tax Declaration of real properties at the time of
death, if applicable;
3. Certificate of No Improvement issued by the Assessor's Office where
declared properties have no improvement
For Personal Properties, if any [additional two (2) photocopies of each

document]:
1. Certificate of Deposit/Investment/Indebtedness owned by the decedent

and the surviving spouse, if applicable;
2. Photocopy of Certificate of Registration of vehicles and other proofs

showing the correct value of the same, if applicable;
3. Proof of valuation of shares of stock at the time of death, if applicable;
1. For shares of stocks not listed/not traded - Latest Audited Financial

Statement of the issuing corporation with computation of the book
value per share
2. For shares of stocks listed/traded - Price index from the Philippine

Stock Exchange (PSE) /latest Fair Market Value (FMV) published in
the newspaper at the time of transaction
3. For club shares - Price published in newspapers on the transaction

date or nearest to the transaction date
4. Photocopy of Certificate of stocks, if applicable;

5. Proof of valuation of other types of personal property, if applicable;
Other Additional Requirements, if applicable:
Special Power of Attorney (SPA), if the person transacting/processing the

transfer is not a party to the transaction and/or Sworn Statement if one of
the heirs is designated as executor/administrator;
Certification from the Philippine Consulate if document is executed

abroad
Location Plan/Vicinity map issued by the Local Assessor’s Office if zonal

value cannot be readily determined from the documents submitted
Certificate of Exemption/BIR Ruling issued by the Commissioner of

Internal Revenue or his authorized representative, if tax exempt
BIR-approved request for installment payment of Estate tax due
BIR-approved request for partial disposition of Estate
Such other documents as may be required by law/rulings/regulations/etc.
[return to index]
Tax Rates
(The rate applicable shall be based on the law prevailing at the time of
decedent’s death)
Effective January 1, 2018 to present [Republic Act (RA) No.

10963]
There shall be an imposed rate of six percent (6%) based on the value of such
NET ESTATE determined as of the time of death of decedent composed of all
properties, real or personal, tangible or intangible less allowable deductions.
Effective January 1, 1998 up to December 31, 2017 (RA No.

8424)
If the Net Estate is
Over But not Over The Tax Shall Plus Of the Excess
be Over
P 200,000.00 Exempt
P 200,000.00 500,000.00 0 5% P 200,000.00
500,000.00 2,000,000.00 P 15,000.00 8% 500,000.00
2,000,000.00 5,000,000.00 135,000.00 11% 2,000,000.00
5,000,000.00 10,000,000.00 465,000.00 15% 5,000,000.00
10,000,000.00 1,215,000.00 20% 10,000,000.00

Effective July 28, 1992 up to December 31, 1997 (Section 77 of
the NIRC, as amended (RA No. 7499)
Over But not Over The Tax Shall Plus Of the Excess
be Over
P 200,000.00 Exempt
P 200,000.00 500,000.00 5% P 200,000.00
500,000.00 2,000,000.00 P 15,000.00 8% 500,000.00
2,000,000.00 5,000,000.00 135,000.00 12% 2,000,000.00
5,000,000.00 10,000,000.00 495,000.00 21% 5,000,000.00
10,000,000.00 1,545,000.00 35% 10,000,000.00
Effective January 1, 1973 to July 27, 1992 (Section 85 of the

NIRC, as amended (Presidential Decree No. 69)
Over But not The Tax Shall Plus Of the Excess

Over be Over
P 10,000.00 Exempt - -
P 10,000.00 50,000.00 3% - P 10,000.00
50,000.00 75,000.00 P 1,200.00 4% 50,000.00
75,000.00 100,000.00 2,200.00 5% 75,000.00
100,000.00 150,000.00 3,450.00 10% 100,000.00
150,000.00 200,000.00 8,450.00 15% 150,000.00
200,000.00 300,000.00 15,950.00 20% 200,000.00
300,000.00 400,000.00 35,950.00 25% 300,000.00
400,000.00 500,000.00 60,950.00 30% 400,000.00
500,000.00 625,000.00 90,950.00 35% 500,000.00
625,000.00 750,000.00 134,700.00 40% 625,000.00
750,000.00 875,000.00 184,700.00 45% 750,000.00
875,000.00 1,000,000.00 240,950.00 50% 875,000.00
1,000,000.00 2,000,000.00 303,450.00 53% 1,000,000.00
2,000,000.00 3,000,000.00 833,450.00 56% 2,000,000.00
3,000,000.00 - 1,393,450.00 60% 3,000,000.00
Effective September 15, 1950 to December 31, 1972 (Section 85

of the NIRC, as amended (RA No. 579)
Estate and Inheritance Tax
Over But not Over ESTATE INHERITANCE

0 5,000.00 Exempt Exempt
5,000.00 12,000.00 1.00% 2%
12,000.00 30,000.00 2.00% 4%
30,000.00 50,000.00 2.50% 6%
50,000.00 70,000.00 3.00% 8%
70,000.00 100,000.00 5.00% 12%
100,000.00 150,000.00 7.00% 14%
150,000.00 250,000.00 9.00% 16%
250,000.00 500,000.00 11.00% 18%
500,000.00 1,000,000.00 13% 20%
1,000,000.00 15% 22%
Effective July 1, 1939 to September 14, 1950 (Section 85 of the

NIRC, as amended (Commonwealth Act No. 466)
Estate and Inheritance Tax
Over But not Over ESTATE INHERITANCE

0 3000 Exempt 1.00%
3,000.00 10,000.00 1.00%
10,000.00 30,000.00 1.50% 2.00%
30,000.00 50,000.00 2.00% 3.00%
50,000.00 80,000.00 2.50% 4.00%
80,000.00 110,000.00 3.00% 5.00%
110,000.00 150,000.00 3.50% 6.00%
150,000.00 190,000.00 4.00% 7.00%
190,000.00 240,000.00 4.50% 8.00%
240,000.00 290,000.00 5.00% 9.00%
290,000.00 350,000.00 5.50% 10.00%
350,000.00 420,000.00 6.00% 11.00%

420,000.00 500,000.00 6.50% 12.00%
500,000.00 600,000.00 7.00% 13.00%
600,000.00 720,000.00 7.50% 14.00%
720,000.00 850,000.00 8.00% 15.00%
850,000.00 1,000,000.00 8.50% 16.00%
1,000,000.00 1,200,000.00 9.00% 17.00%
1,200,000.00 1,500,000.00 9.50% 17.00%
1,500,000.00 10.00% 17.00%
[return to index]
Procedures
Who Shall File
The Estate Tax Return (BIR Form 1801) shall be filed in triplicate by:
1. The executor, or administrator, or any of the legal heir/s of the decedent,

whether resident or non-resident of the Philippines, under any of the following
situations:
a. In all cases of transfers subject to estate tax;

b. Regardless of the gross value of the estate, where the said estate consists of
registered or registrable property such as real property, motor vehicle, shares of
stock or other similar property for which a clearance from the BIR is required as
a condition precedent for the transfer of ownership thereof in the name of the
transferee; or
2. If there is no executor or administrator appointed, qualified, and acting

within the Philippines, then any person in actual or constructive possession of
any property of the decedent.
Taxpayers who are filing BIR Form 1801 are excluded in the mandatory
coverage from using the eBlRForms (Section 2 of RR No. 9-2016)
When and Where to File and Pay
The Estate Tax Return (BIR Form 1801) shall be filed within one (1) year from
the decedent's death. In meritorious cases, the Commissioner shall have the
authority to grant a reasonable extension not exceeding thirty (30) days for
filing the return.
The return shall be filed with any Authorized Agent Bank (AAB) of the Revenue
District Office (RDO) having jurisdiction over the place of domicile of the
decedent at the time of his death. If the decedent has no legal residence in the
Philippines, the return shall be filed with the Office of the Commissioner (RDO
No. 39, South Quezon City).
In case of a non-resident decedent with executor or administrator in the

Philippines, the return shall be filed with the AAB of the RDO where such

executor/administrator is registered or is domiciled, if not yet registered with
the BIR.
When the return is filed with an AAB, taxpayer must accomplish and submit
BIR-prescribed deposit slip, which the bank teller shall machine validate as
evidence that payment was received by the AAB. The AAB receiving the tax
return shall stamp mark the word “Received’’ on the return and also machine
validate the return as proof of filing the return and payment of the tax by the
taxpayer, respectively. The machine validation shall reflect the date of payment,
amount paid and transaction code, the name of the bank, branch code, teller’s
code and teller’s initial. Bank debit memo number and date should be indicated
in the return for taxpayers paying under the bank debit system.
Payments may also be made thru the epayment channels of AABs thru either
their online facility, credit/debit/prepaid cards, and mobile payments.
In case the available cash of the estate is insufficient to pay the total estate tax
due, payment by installment shall be allowed within two (2) years from the
statutory date for its payment without civil penalty and interest upon approved
by the concerned BIR Official.
The due date on filing and payment of the return/tax shall depend on the
applicable law at the time of the decedent’s death.
Extension to File and Pay
When the Commissioner of Internal Revenue finds that the payment on the due
date of the estate tax or of any part thereof would impose undue hardship upon
the estate or any of the heirs, he may extend the time for payment of such tax or
any part thereof not to exceed five (5) years, in case the estate is settled through
the courts, or two (2) years in case the estate is settled extra-judicially. In such
case, the amount in respect of which the extension is granted shall be paid on or
before the date of the expiration of the period of the extension, and the running
of the Statute of Limitations for assessment as provided in Section 203 of the
National Internal Revenue Code shall be suspended for the period of any such
extension.
Where the taxes are assessed by reason of negligence, intentional disregard of

rules and regulations, or fraud on the part of the taxpayer, no extension will be
granted by the Commissioner.
If an extension is granted, the Commissioner of Internal Revenue or his duly

authorized representative may require the executor, or administrator, or
beneficiary, as the case may be, to furnish a bond in such amount, not exceeding
double the amount of tax and with such sureties as the Commissioner deems
necessary, conditioned upon the payment of the said tax in accordance in the
terms of extension.
The application for extension of time to file the estate tax return must be filed
with the Revenue District Officer (RDO) where the estate is required to secure
its Taxpayer Identification Number (TIN) and file the tax returns of the estate.
The application shall be approved by the Commissioner or his duly authorized
representative.
[return to index]

Related Revenue Issuances
Revenue Regulations (RR) Nos. 2-2003, 6-2013, 6-2014; 12-2018

Revenue Memorandum Order (RMO) Nos. 26-82, 31-82, 15-2003; 35-2018
Revenue Memorandum Circular (RMC) Nos. 1-98, 34-2013
OPM-AS-APMD 2017-06-06
OPM-AS-APMD 2017-06-01
Related Laws
Commonwealth Act No. 466 – effective July 1, 1939

Republic Act No. 579 – effective September 15, 1950
Republic Act No. 6110 – effective August 4, 1969
Presidential Decree No. 69 – effective January 1, 1973
Republic Act No. 7499 – effective July 28, 1992|
Republic Act No. 8424 – effective January 1, 1998
Republic Act No. 10963 – effective January 1, 2018
[return to index]
Codal Reference
Sec. 22 to 27 of the Tax Reform Acceleration and Inclusion Act (TRAIN Law)
Sec. 84 to Sec. 97 of the National Internal Revenue Code (NIRC) of 1997
[return to index]
Frequently Asked Questions
1. What are included in gross estate?
A. For resident alien decedents/citizens:
Real or immovable property, wherever located
Tangible personal property, wherever located
Intangible personal property, wherever located
B. For non-resident decedent/non-citizens:
Real or immovable property located in the Philippines

Tangible personal property located in the Philippines
Intangible personal property - with a situs in the Philippines such as:
Franchise which must be exercised in the Philippines
Shares, obligations or bonds issued by corporations organized or
constituted in the Philippines
Shares, obligations or bonds issued by a foreign corporation 85% of the
business of which is located in the Philippines
Shares, obligations or bonds issued by a foreign corporation if such
shares, obligations or bonds have acquired a business situs in the
Philippines (i.e. they are used in the furtherance of its business in the

Philippines)
Shares, rights in any partnership, business or industry established in the
Philippines
2. What are excluded from gross estate?
GSIS proceeds/ benefits

Accruals from SSS
Proceeds of life insurance where the beneficiary is irrevocably appointed
Proceeds of life insurance under a group insurance taken by employer (not
taken out upon his life)
War damage payments
Transfer by way of bona fide sales
Transfer of property to the National Government or to any of its political
subdivisions
Separate property of the surviving spouse
Merger of usufruct in the owner of the naked title
Properties held in trust by the decedent
Acquisition and/or transfer expressly declared as not taxable
3. What will be used as basis in the valuation of property?
The properties comprising the gross estate shall be valued based on their fair
market value as of the time of decedent’s death.
If the property is a real property, the appraised value thereof as of the time of
death shall be, whichever is the higher of –
1. The fair market value as determined by the Commissioner, or
2. The fair market value as shown in the schedule of values fixed by the
provincial and city assessors.
In the case of shares of stocks, the fair market value shall depend on whether
the shares are listed or unlisted in the stock exchanges. Unlisted common
shares are valued based on their book value while unlisted preferred shares are
valued at par value. In determining the book value of common shares, appraisal
surplus shall not be considered as well as the value assigned to preferred shares,
if there are any. On this note, the valuation of unlisted shares shall be exempt
from the provisions of RR No. 6-2013, as amended.
For shares which are listed in the stock exchanges, the fair market value shall be
the arithmetic mean between the highest and lowest quotation at a date nearest
the date of death, if none is available on the date of death itself.
The fair market value of units of participation in any association, recreation or

amusement club (such as golf, polo, or similar clubs), shall be the bid price
nearest the date of death published in any newspaper or publication of general
circulation.
To determine the value of the right to usufruct, use or habitation, as well as that
of annuity, there shall be taken into account the probable life of the beneficiary
in accordance with the latest basic standard mortality table, to be approved by
the Secretary of Finance, upon recommendation of the Insurance
Commissioner.(Sec. 5, RR No. 12-2018)
4. What are the allowable deductions for Estate Tax Purposes?

(Please note that the allowable deductions will vary depending on the law
applicable at the time of the decedent’s death)
For dates of deaths occurring January 1, 2018 to present (RA

No. 10963/TRAIN Law)
A. For a citizen or resident alien:
1. Standard Deduction — An amount equivalent to Five million pesos

(₱5,000,000.00)
2. Claims against the estate -
Requisites for Deductibility of Claims against the Estate –
The liability represents a personal obligation of the deceased existing at

the time of death;
The liability was contracted in good faith and for adequate and full
consideration in money’s worth;
The claim must be a debt or claim which is valid in law and enforceable in
court; and
The indebtedness must not have been condoned by the creditor or the
action to collect from the decedent must not have prescribed.
3. Claims of the deceased against insolvent persons where the value of the
decedent’s interest therein is included in the value of the gross estate
4. Unpaid mortgages, taxes and casualty losses
5. Property previously taxed - An amount equal to the value specified below

of any property forming part of the gross estate situated in the Philippines of
any person who died within five (5) years prior to the death of the decedent, or
transferred to the decedent by gift within five (5) years prior to his death, where
such property can be identified as having been received by the decedent from
the donor by gift, or from such prior decedent by gift, bequest, devise or
inheritance, or which can be identified as having been acquired in exchange for
property so received:
“One hundred percent (100%) of the value, if the prior decedent died within one
(1) year prior to the death of the decedent, or if the property was transferred to
him by gift, within the same period prior to his death;
“Eighty percent (80%) of the value, if the prior decedent died more than one (1)
year but not more than two (2) years prior to the death of the decedent, or if the
property was transferred to him by gift within the same period prior to his
death;
“Sixty percent (60%) of the value, if the prior decedent died more than two (2)
years but not more than three (3) years prior to the death of the decedent, or if
the property was transferred to him by gift within the same period prior to his
death;
“Forty percent (40%) of the value, if the prior decedent died more than three (3)
years but not more than four (4) years prior to the death of the decedent, or if

death; and
“Twenty percent (20%) of the value, if the prior decedent died more than four
(4) years but not more than five (5) years prior to the death of the decedent, or if
death.
“These deductions shall be allowed only where a donor’s tax, or estate tax
imposed under Title III of NIRC was finally determined and paid by or on
behalf of such donor, or the estate of such prior decedent, as the case may be,
and only in the amount finally determined as the value of such property in
determining the value of the gift, or the gross estate of such prior decedent, and
only to the extent that the value of such property is included in the decedent’s
gross estate, and only if in determining the value of the estate of the prior
decedent, no deduction was allowable under this item in respect of the property
or properties given in exchange therefor. Where a deduction was allowed of any
mortgage or other lien in determining the donor’s tax, or the estate tax of the
prior decedent, which was paid in whole or in part prior to the decedent’s death,
then the deduction allowable this item shall be reduced by the amount so paid.
Such deduction allowable shall be reduced by an amount which bears the same
ratio to the amounts allowed as deductions under items (2), (3), (4), and (6) of
this Subsection as the amount otherwise deductible under this item bears to the
value of the decedent’s estate. Where the property referred to consists of two or
more items, the aggregate value of such items shall be used for the purpose of
computing the deduction.
6. Transfers for Public Use
7. The Family Home - An amount equivalent to the current fair market value of
the decedent’s family home: Provided, however, that if the said current fair
market value exceeds Ten million pesos (₱10,000,000.00), the excess shall be
subject to estate tax
If the family home is conjugal property and does not exceed (₱10,000,000.00),
the allowable deduction is one-half (1/2) of the amount only.
8. Amount Received by Heirs Under Republic Act No. 4917
Any amount received by the heirs from the decedent’s employer as a

consequence of the death of the decedent-employee in accordance with
Republic Act No. 4917: Provided, that such amount is included in the gross
estate of the decedent.
9. Net share of the surviving spouse in the conjugal partnership or community

property
B. For a non-resident alien:
1. Standard Deduction – An amount equivalent to Five hundred thousand pesos

(₱500,000)
2. Losses and indebtedness -
2.1. Claims against the estate

2.2. Claims of the deceased against insolvent persons where the value of the
decedent’s interest therein is included in the value of the gross estate
2.3. Unpaid mortgages, taxes and casualty losses

3. Property previously taxed
4. Transfers for Public Use

property
For deaths occurring January 1, 1998 to December 31, 2017 (RA

No. 8424/NIRC of 1997)
A. For a citizen or resident alien:
1. Expenses, Losses, Indebtedness, and Taxes:
1. Actual funeral expenses (whether paid or unpaid) up to the time of

interment, or an amount equal to five percent (5%) of the gross estate,
whichever is lower, but in no case to exceed P200,000.
2. Judicial expenses of the testamentary or intestate proceedings.
3. Claims against the estate.
4. Claims of the deceased against insolvent persons where the value of the
decedent’s interest therein is included in the value of the gross estate; and,
5. Unpaid mortgages, taxes and casualty losses
2. Property previously taxed (Vanishing Deduction) (Section 86 (2) of the NIRC

as amended by RA No. 8424) - An amount equal to the value specified below of
any property forming a part of the gross estate situated in the Philippines of any
person who died within five (5) years prior to the death of the decedent, or
transferred to the decedent by gift within five (5) years prior to his death, where
such property can be identified as having been received by the decedent from
the donor by gift, or from such prior decedent by gift, bequest, devise or
inheritance, or which can be identified as having been acquired in exchange for
property so received:
One hundred percent (100%) of the value, if the prior decedent died within one
(1) year prior to the death of the decedent, or if the property was transferred to
him by gift within the same period prior to his death;
Eighty percent (80%) of the value, if the prior decedent died more than one (1)
year but not more than two (2) years prior to the death of the decedent, or if the
property was transferred to him by gift within the same period prior to his
death;
Sixty percent (60%) of the value, if the prior decedent died more than two (2)
years but not more than three (3) years prior to the death of the decedent, or if
death;
Forty percent (40%) of the value, if the prior decedent died more than three (3)
years but not more than four (4) years prior to the death of the decedent, or if
death; and
Twenty percent (20%) of the value, if the prior decedent died more than four (4)
years but not more than five (5) years prior to the death of the decedent, or if

death;
These deductions shall be allowed only where a donor’s tax or estate tax
imposed was finally determined and paid by or on behalf of such donor, or the
estate of such prior decedent, as the case may be, and only in the amount finally
determined as the value of such property in determining the value of the gift, or
the gross estate of such prior decedent, and only to the extent that the value of
such property is included in the decedent’s gross estate, and only if in
determining the value of the estate of the prior decedent, no Property Previously
Taxed or Vanishing Deduction was allowable in respect of the property or
properties given in exchange therefor. (Section 6 & 7 of RR No. 2-2003)
3. Transfers for public use
4. The family home - fair market value but not to exceed P1,000,000.00
The family home refers to the dwelling house, including the land on which it is
situated, where the husband and wife, or a head of the family, and members of
their family reside, as certified to by the Barangay Captain of the locality. The
family home is deemed constituted on the house and lot from the time it is
actually occupied as a family residence and is considered as such for as long as
any of its beneficiaries actually resides therein. (Arts. 152 and 153, Family Code)
5. Standard deduction – A deduction in the amount of One Million Pesos

(P1,000,000.00) shall be allowed as an additional deduction without need of
substantiation.
6. Medical expenses – All medical expenses (cost of medicines, hospital bills,

doctor’s fees, etc.) incurred (whether paid or unpaid) within one (1) year before
the death of the decedent shall be allowed as a deduction provided that the
same are duly substantiated with official receipts. For services rendered by the
decedent’s attending physicians, invoices, statements of account duly certified
by the hospital, and such other documents in support thereof and provided,
further, that the total amount thereof, whether paid or unpaid, does not exceed
Five Hundred Thousand Pesos (P500,000).
7. Amount received by heirs under RA No. 4917 - Any amount received by the
heirs from the decedent’s employer as a consequence of the death of the
decedent-employee in accordance with Republic Act No. 4917 is allowed as a
deduction provided that the amount of the separation benefit is included as part
of the gross estate of the decedent.

property
B. For a non-resident alien:
1. Expenses, losses, indebtedness and taxes
2. Property previously taxed
3. Transfers for public use

property

No deduction shall be allowed in the case of a non-resident decedent not a
citizen of the Philippines, unless the executor, administrator, or anyone of the
heirs, as the case may be, includes in the return required to be filed in the
Section 90 of the Code the value at the time of the decedent’s death of that part
of his gross estate not situated in the Philippines.
5. What does the term "Funeral Expenses" include?
The term "FUNERAL EXPENSES" is not confined to its ordinary or usual

meaning. They include:
1. The mourning apparel of the surviving spouse and unmarried minor

children of the deceased bought and used on the occasion of the burial;
2. Expenses for the deceased’s wake, including food and drinks;
3. Publication charges for death notices;
4. Telecommunication expenses incurred in informing relatives of the

deceased;
5. Cost of burial plot, tombstones, monument or mausoleum but not their

upkeep. In case the deceased owns a family estate or several burial lots,
only the value corresponding to the plot where he is buried is deductible;
6. Interment and/or cremation fees and charges; and
7. All other expenses incurred for the performance of the rites and
ceremonies incident to interment.
Expenses incurred after the interment, such as for prayers, masses,

entertainment, or the like are not deductible. Any portion of the funeral and
burial expenses borne or defrayed by relatives and friends of the deceased are
not deductible. Actual funeral expenses shall mean those which are actually
incurred in connection with the interment or burial of the deceased. The
expenses must be duly supported by official receipts or invoices or other
evidence to show that they were actually incurred. (Sec 6 (A)(1) of RR 2-2003)
6. What does the term "Judicial Expenses" include?
Expenses allowed as deduction under this category are those incurred in the
inventory-taking of assets comprising the gross estate, their administration, the
payment of debts of the estate, as well as the distribution of the estate among
the heirs. In short, these deductible items are expenses incurred during the
settlement of the estate but not beyond the last day prescribed by law, or the
extension thereof, for the filing of the estate tax return. Judicial expenses may
include:
1. Fees of executor or administrator;

2. Attorney’s fees;
3. Court fees;
4. Accountant’s fees;
5. Appraiser’s fees;
6. Clerk hire;
7. Costs of preserving and distributing the estate;
8. Costs of storing or maintaining property of the estate; and
9. Brokerage fees for selling property of the estate.

Any unpaid amount for the aforementioned cost and expenses claimed
under “Judicial Expenses” should be supported by a sworn statement of account
issued and signed by the creditor. (Sec 6 (A)(2) of RR 2-2003)
[return to index]

Estate Tax - BIR

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Estate Tax - BIR

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Estate Tax - Bureau of Internal Revenue

Assessment Performance and Monitoring Division 1

Index for Estate Tax:

BIR Form 1801 - Estate Tax Return

Mandatory Requirements [additional two (2) photocopies of each

1. Certified true copy of the Death Certificate;

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For Real Properties, if any [additional two (2) photocopies of each

1. Certified true copy/ies of the Transfer/Original/Condominium

For Personal Properties, if any [additional two (2) photocopies of each

1. Certificate of Deposit/Investment/Indebtedness owned by the decedent

2. Photocopy of Certificate of Registration of vehicles and other proofs

3. Proof of valuation of shares of stock at the time of death, if applicable;

1. For shares of stocks not listed/not traded - Latest Audited Financial

2. For shares of stocks listed/traded - Price index from the Philippine

3. For club shares - Price published in newspapers on the transaction

4. Photocopy of Certificate of stocks, if applicable;

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Other Additional Requirements, if applicable:

Special Power of Attorney (SPA), if the person transacting/processing the

Certification from the Philippine Consulate if document is executed

Location Plan/Vicinity map issued by the Local Assessor’s Office if zonal

Certificate of Exemption/BIR Ruling issued by the Commissioner of

BIR-approved request for installment payment of Estate tax due

BIR-approved request for partial disposition of Estate

Such other documents as may be required by law/rulings/regulations/etc.

Effective January 1, 2018 to present [Republic Act (RA) No.

Effective January 1, 1998 up to December 31, 2017 (RA No.

If the Net Estate is

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If the Net Estate is

Effective January 1, 1973 to July 27, 1992 (Section 85 of the

If the Net Estate is

Over But not The Tax Shall Plus Of the Excess

Effective September 15, 1950 to December 31, 1972 (Section 85

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Estate and Inheritance Tax

If the Net Estate is

Over But not Over ESTATE INHERITANCE

Effective July 1, 1939 to September 14, 1950 (Section 85 of the

Estate and Inheritance Tax

If the Net Estate is

Over But not Over ESTATE INHERITANCE

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Who Shall File

1. The executor, or administrator, or any of the legal heir/s of the decedent,

a. In all cases of transfers subject to estate tax;

2. If there is no executor or administrator appointed, qualified, and acting

When and Where to File and Pay

In case of a non-resident decedent with executor or administrator in the

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Extension to File and Pay

Where the taxes are assessed by reason of negligence, intentional disregard of

If an extension is granted, the Commissioner of Internal Revenue or his duly

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Revenue Regulations (RR) Nos. 2-2003, 6-2013, 6-2014; 12-2018

Commonwealth Act No. 466 – effective July 1, 1939

Frequently Asked Questions

1. What are included in gross estate?

A. For resident alien decedents/citizens:

Real or immovable property, wherever located

Tangible personal property, wherever located

Intangible personal property, wherever located

B. For non-resident decedent/non-citizens: