BAM 208 | Business Taxation

Student Activity Sheet Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

N
Lesson Title: Transfer Taxes: Property relations – Part 2 Materials:

IO
Calculator, reviewer notebook,
Lesson Objectives: textbook

AT
At the end of this module, I should be able to:
1. Demonstrate Pro-forma computation of net taxable estate References:
2. Illustrate complete separation of property Business and Transfer Taxes by

C
3. Illustrate Property unions of regime without marriages Enrico Tabag (latest edition)

U
4.

ED
Productivity Tip:
Set Boundaries for Yourself
A
Set time limits for yourself each day. You may also find that placing time limits on your study time helps to
M
motivate you to get more done during the hours that you are studying. Generally, the more time we give
IN

ourselves to do something, the more time we take.

PH

A. LESSON PREVIEW/REVIEW
1) Introduction (2 mins)
F

Welcome back to the class. Let us be acquainted with your learning.

O

Identification: Identify which property relation are being asked.

TY

1. This means each one of the spouses owns his or her exclusive properties, from both present and future
property, including the ones they already own prior to getting married.
2. Property is a system of property relation that treats properties acquired by the spouses during their
R

marriage as jointly owned and considered currently the default set-up.

PE

3. It may refer to the property regime of bigamous marriages, adulterous relationships in state of
concubinage, relationships where both man and woman are married to other persons.
O

4. Properties dictates that properties acquired before the union are exclusively that of the buyer, where any
property purchased or built by the husband during his singlehood is exclusively his.
PR

Essay: Differentiate conjugal and exclusive deductions

______________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________
______________________________________________________________________________________

2) Activity 1: What I Know Chart, part 1 (3 mins)

This document is the property of PHINMA EDUCATION

 BAM 208 | Business Taxation
Student Activity Sheet Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

What I Know Questions: What I Learned (Activity 4)

N
What is Complete
Separation of Property?

IO
AT
What is Property Regime
of Unions Without

C
Marriage?

U
ED
B. MAIN LESSON
1) Activity 2: Content Notes (13 mins)
LO 1: Demonstrate Pro-forma computation of net taxable estate
A
Estate Tax is a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and
M
beneficiaries at the time of death and on certain transfers, which are made by law as equivalent to testamentary
IN

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
PH

postponement of the actual possession or enjoyment of the estate by the beneficiary.

There shall be an imposed rate of six percent (6%) based on the value of such NET ESTATE determined as of
F

the time of death of decedent composed of all properties, real or personal, tangible or intangible less allowable
O

deductions. (In connection to the topic, this is after removing the share of the surviving spouse depending on the
property relations of the marriage).
TY

PROFORMA COMPUTATION:
R

GROSS ESTATE XXX

PE

ALLOWED DEDUCTIONS XXX

O

NET ESTATE XXX

PR

ESTATE TAX RATE 6%

ESTATE TAX DUE XXX

LO 2: Illustrate complete separation of property

This document is the property of PHINMA EDUCATION

 BAM 208 | Business Taxation
Student Activity Sheet Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Complete Separation of Property “This means each one of the spouses owns his or her exclusive

N
properties, from both present and future property, including the ones
they already own prior to getting married. If couples choose this

IO
property relation or regime, the means for supporting their family is
through the use of common fund. The contribution of each part will

AT
depend on their income capacity.” - attorney.org.ph

C
LO 3: Illustrate Property unions of regime without marriages

U
ED
Property Regime “It applies to couples who are capable of getting married but due to some reason did not
of Unions get married because the property relations resemble that in CPG [Conjugal Partnership of
Without Marriage Gains]. This means their possessions prior to their marriage remain theirs, but the

A
properties they produce or acquire during their marriage will be shared equally by both
couples.” - attorney.org.ph
M
IN

Refer to Article 147of the family code for unions of regime without marriages
PH
F
O
TY
R
PE

2) Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking)
A. Complete the table.
PROPERTY Absolute Conjugal
O

Community of Partnership of
PR

Property Gains
1. Properties acquired before marriage
2. Properties acquired during marriage
• Form exclusive property
• From common property
• Those obtained from labor, industry, work or profession of
either or both spouses
• From Gratuitous transfer (inheritance or donation)

This document is the property of PHINMA EDUCATION

 BAM 208 | Business Taxation
Student Activity Sheet Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

CGP

N
ACoP
Generally

IO
The donor/testator expressly provided that it

AT
shall form part of the community property
3. Fruits or income on properties: Apply the rules:
• ACoP:

C
• CGP:

U
4. Property for personal and exclusive use of either spouse

ED
• Generally
• Except Jewelry under ACoP

A
B. Venn Diagram. Identify the similarities and difference of Complete Separation of Property and Complete
M
Separation of Property.
IN
PH
F
O
TY
R

3) Activity 4: What I Know Chart, part 2 (2 mins)

PE

4) Activity 5: Check for Understanding (5 mins)

O

Identify if the property is a Community or Exclusive under Absolute Community Property and if the property is a
Conjugal or Exclusive under Conjugal Partnership of Gains
PR

Absolute Conjugal
Community Partnership of
Property Gains
1. Properties owned by the spouses before and brought into the marriage
2. The fruits on properties owned by the spouses before and brought into
the marriage
3. Properties received from gratuitous transfer during the marriage

This document is the property of PHINMA EDUCATION

 BAM 208 | Business Taxation
Student Activity Sheet Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

4. Properties received from gratuitous transfer during marriage where the

N
donor or testator expressly provides that it shall form part of the common
property of the spouses

IO
5. The fruits received during marriage from gratuitous transfer
6. Personal property for personal and exclusive use

AT
7. Vanishing deduction on properties received from gratuitous transfer
before marriage

C
8. Vanishing deduction on properties received from gratuitous transfer

U
during marriage

ED
C. LESSON WRAP-UP
1) Activity 6: Thinking about Learning (5 mins)

A
Work tracker. Congratulations! You have finished the module for today! Shade the number of the module that
M
you finished.
IN

Period 1 Period 2 Period 3

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
PH

How do you feel today?

I feel (unsatisfactory/satisfactory/excellent) because _______________________________________________________________.
F
O

What are your challenges in learning the concepts in this module? If you do not have challenges, what is your
best learning for today?
TY

______________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________
R
PE

What are the questions/thoughts you want to share to your teacher today?
______________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________
O
PR

FAQs
1. What is the tax form to be used for Estate Tax Return?
BIR Form 1801 - Estate Tax Return

2. Who shall file BIR Form 1801?

This return 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

This document is the property of PHINMA EDUCATION

 BAM 208 | Business Taxation
Student Activity Sheet Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

of the gross value of the estate, where the said estate consists of registered or registrable property such as real

N
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

IO
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.

AT
3. When and where to file and pay?

C
This return shall be filed within one (1) year from the decedent's death. In meritorious cases, the

U
Commissioner shall have the authority to grant a reasonable extension not exceeding thirty (30) days for filing

ED
the return.
This 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

A
legal residence in the Philippines, the return shall be filed with the Office of the Commissioner (Revenue District
Office No. 39, South Quezon City).
M
In case of a non-resident decedent with executor or administrator in the Philippines, the return shall be
IN

filed with the AAB of the RDO where such executor/administrator is registered or if not yet registered, at the
place of domicile.
PH

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
F

of filing the return and payment of the tax by the taxpayer, respectively. The machine validation shall reflect the
O

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
TY

debit system.
Payments may also be made thru the epayment channels of AABs thru either their online facility,
R

credit/debit/prepaid cards, and mobile payments.

PE

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.
When the Commissioner finds that the payment on the due date of the estate tax or of any part thereof
O

would impose undue hardship upon the estate or any of the heirs, he may extend the time for payment of such
PR

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 extrajudicially. 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, as
amended, shall be suspended for the period of any such extension.
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.

This document is the property of PHINMA EDUCATION

 BAM 208 | Business Taxation
Student Activity Sheet Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

N
KEY TO CORRECTIONS
Review

IO
Identification: Identify which property relation are being asked.
1. This means each one of the spouses owns his or her exclusive properties, from both present and future

AT
property, including the ones they already own prior to getting married. Complete Separation of
Property

C
2. Property is a system of property relation that treats properties acquired by the spouses during their

U
marriage as jointly owned and considered currently the default set-up. System of Absolute Community

ED
3. It may refer to the property regime of bigamous marriages, adulterous relationships in state of
concubinage, relationships where both man and woman are married to other persons. Property Regime
of Unions Without Marriage

A
4. Properties dictates that properties acquired before the union are exclusively that of the buyer, where any
property purchased or built by the husband during his singlehood is exclusively his. Conjugal
M
Partnership of Gains
IN

Essay: Differentiate conjugal and exclusive deductions

PH

Conjugal deductions In properties under conjugal/community, the share of the surviving spouse
shall be removed as a deduction from the gross estate.
F

Exclusive property For exclusive properties, because 100% of the property is owned by the
O

deductions decedent, the full value of the property shall be included in the gross estate
and no share of surviving spouse shall be deducted.
TY
R

Activity 1 and 4.
PE

Questions: What I Learned (Activity 4)

What is Complete “This means each one of the spouses owns his or her exclusive properties, from both
O

Separation of present and future property, including the ones they already own prior to getting
Property? married. If couples choose this property relation or regime, the means for supporting
PR

their family is using common fund. The contribution of each part will depend on their
income capacity.” - attorney.org.ph
What is Property “It applies to couples who are capable of getting married but due to some reason
Regime of Unions did not get married because the property relations resemble that in CPG [Conjugal
Without Marriage? Partnership of Gains]. This means their possessions prior to their marriage remain

This document is the property of PHINMA EDUCATION

 BAM 208 | Business Taxation
Student Activity Sheet Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

theirs, but the properties they produce or acquire during their marriage will be shared

N
equally by both couples.” - attorney.org.ph

IO
Refer to Article 147of the family code for unions of regime without marriages

AT
Activity 3.
A.

C
PROPERTY Absolute Conjugal

U
Community of Partnership of
Property Gains

ED
1. Properties acquired before marriage Common Exclusive
2. Properties acquired during marriage
• Form exclusive property
• From common property A Exclusive
Common
Exclusive
Common
M
• Those obtained from labor, industry, work or profession of Common Common
IN

either or both spouses

• From Gratuitous transfer (inheritance or donation)
PH

CGP - Exclusive
ACoP
Generally Exclusive -
F

The donor/testator expressly provided that it Common -

O

shall form part of the community property

3. Fruits or income on properties: Apply the rules:
TY

• ACoP: The fruit shall follow the source

• CGP: All fruits are common
R

4. Property for personal and exclusive use of either spouse

PE

• Generally Exclusive Exclusive

• Except Jewelry under ACoP Common -
O

B.
PR

Criteria Unsatisfactory (1 pt.) Satisfactory (3 pts.) Excellent (5 pts.)

Content The student did not The student elaborated The student elaborated
elaborate his/her ideas.
his/her ideas by providing his/her ideas by providing
definitions. examples and
applications.
Organization of Ideas The student did not The student did organize The student applied
organize her thoughts. her thoughts. parallelism and patterns.

This document is the property of PHINMA EDUCATION

 BAM 208 | Business Taxation
Student Activity Sheet Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Overall Appeal The student needs to The student can create an The student is excellent in

N
improve his/her skills. appropriate diagram. his/her overall skills.

IO
Activity 5.
Absolute Conjugal

AT
Community Partnership of
Property Gains

C
1. Properties owned by the spouses before and brought into the marriage Community Exclusive

U
2. The fruits on properties owned by the spouses before and brought into Community Conjugal

ED
the marriage
3. Properties received from gratuitous transfer during the marriage Exclusive Exclusive
4. Properties received from gratuitous transfer during marriage where the Community Exclusive

A
donor or testator expressly provides that it shall form part of the common
M
property of the spouses
5. The fruits received during marriage from gratuitous transfer Exclusive Conjugal
IN

6. Personal property for personal and exclusive use Exclusive Exclusive

7. Vanishing deduction on properties received from gratuitous transfer Community Exclusive
PH

before marriage
8. Vanishing deduction on properties received from gratuitous transfer Exclusive Exclusive
during marriage
F
O
TY
R
PE
O
PR

This document is the property of PHINMA EDUCATION