estate tax zxced presentation

8/6/2019 ESTATE TAX Zxced Presentation

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ESTATE TAX

also known as inheritance tax

it is levied on a person who inheritsmoney or property, or a tax on the

estate of a person who has died.


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is a tax on the right of the

deceased person to transmit his

estate to his lawful heirs and

beneficiaries.


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Properties Includable In Gross

EstateorGross Gift:

1. Citizen or resident decedent or donor

2. Non-resident alien


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C.PropertiesConsidered

Situated in thePhilippines1. Franchise which must be exercised in the Philippines.

2. Shares, obligations or bonds issued by corporation or

sociedad anonima organized or constituted in the Philippines.

3. Shares, obligations or bonds issued by a foreign corporationeighty- five per centum ofthe business of, which is located inthe Philippines.

4. Shares, obligations or bonds issued by a foreign corporation if

such shares, obligations or bonds have acquired a businesssitus in the Philippines.

5. Shares or rights in any partnership, business orindustryestablished in the Philippines.


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D. ProceedsofLife

Insurance:

1. Includable in gross estate:

a) Revocable beneficiary.

b) Appointed beneficiary is the estate,

executor or administrator.

2. Notincludable in gross estate:a) Received from the GSIS and SSS.


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E. Personal Properties:

1. Shares of stocks, bonds and securities.

2. Interestin partnerships, business orindustry.

3. Cash on hand and in banks.

4. Machineries, transportation equipments, farm implements,tools,

farm animals, etc.

5. Antiques, jewelry, silverware, paintings, etchings,

engravings, books,statues, vases, oriental rugs, collection of stamps and

coins.


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6. Household furnitures, fixtures, appliances

and other personal effects.

7. Usufruct, annuities, use or habitation.

8. Mortgage notes, participation certificates,judgements, obligationsand action which have fortheir object

movables or demandablesums.

9. Goodwill, patents, and trademarks.


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Documentary Requirements

1. Notice of Death duly received by the BIR, ifgrossestate exceeds P20,000 for deaths occurring on or afterJan. 1, 1998; orifthe gross estate exceeds P3,000 fordeaths occurring priorto January 1, 1998

2. Cer tified true copy ofthe Death Certificate

3. Deed of Extra-Judicial Settlement ofthe Estate, iftheestate is settled extra judicially

4. Court Orders/Decision, ifthe estate is settled judicially;

5. Aff idavit of Self-Adjudication and Sworn Declaration ofall properties ofthe Estate


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6. A cer tified true copy ofthe schedule of partition oftheestate and the order ofthe court approvingthe same, ifapplicable

7. Cer tified true copy(ies) oftheTransfer/Original/Condominium Certificate of Title(s) of realproperty(ies) (front and back pages), if applicable

8. Cer tified true copy ofthe latest Tax Declaration of realproperties atthe time of death, if applicable

9. "Certificate of No Improvement" issued by theAssessor's Office declared properties have no declaredimprovement or Sworn Declaration/Affidavit of NoImprovement by at least one (1) ofthe transferees

10. Cer tificate of Deposit/Investment/Indebtedness ownedby the decedent and the surviving spouse, if applicable


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11. Photo copy of Certificate of Registration of vehicles and other proofsshowingthe correct value ofthe same, ifapplicable

12. Photo copy of certificate of stocks, if applicable

13. Proof of valuation of shares of stocks atthe time of death, ifapplicable

y For listed stocks - newspaper clippings or certification from the StockExchange

y For unlisted stocks - latest audited Financial Statement ofissuingcorporation with computation of book value per share

14. Proof of valuation of othertypes of personal property, if applicable

15. Proof of claimed tax credit, if applicable

16. CPA Statement on the itemized assets ofthe decedent, itemizeddeductions from gross estate and the amount due ifthe gross value ofthe estate exceeds two million pesos, if applicable


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17. Cer tification of Barangay Captain for claimedFamily Home

18. Duly notarized Promissory Note for "Claimsagainstthe Estate" arising from Contract of Loan

19. Accounting ofthe proceeds of loan contracted

within three (3) years priorto death ofthe decedent

20. Proof ofthe claimed "Property Previously Taxed"

21. Proof of claimed "Transfer for Public Use"

22. Copy of Tax Debit Memo used as payment, ifapplicable


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estate tax zxced presentation

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