ESTATE TAX

    Cards (81)

    • What is the BIR Form number for Estate Tax?
      BIR Form No. 1801
    • When does the effectivity of transfer occur for estate tax?
      After death of the transferor
    • What is the estate tax rate based on the net estate value?
      Six percent (6%)
    • Is estate tax a privilege tax or a property tax?
      It is a privilege tax
    • What constitutes the gross estate for resident and non-resident decedents?
      • Resident/Citizen Decedent:
      • Real properties: Wherever situated
      • Personal properties: Wherever situated
      • Taxable transfers: Wherever situated
      • Non-Resident Alien Decedent:
      • Real properties: Situated in the Philippines
      • Personal properties: Situated in the Philippines
      • Taxable transfers: Situated in the Philippines
    • What are the ordinary deductions allowed in estate tax calculations?
      • Losses
      • Indebtedness (Claims against estate)
      • Taxes
      • Claims against insolvent debtor
      • Unpaid mortgage
    • How is LITE calculated for a non-resident alien decedent?
      1. Gross Estate/World Gross Estate x LITE
    • What is a vanishing deduction in estate tax?
      A deduction that decreases over time
    • What are the special deductions allowed in estate tax?
      • Amount received under RA 4917
      • Family home
      • Standard deduction
    • What are the other deductions allowed in estate tax?
      • Share of surviving spouse in the conjugal/community property
    • Is a Notice of Death required under TRAIN for estate tax?
      No longer required under TRAIN
    • Who must file estate tax returns?
      Executor, administrator, or legal heirs
    • What information must be shown in the estate tax returns?
      Value of gross estate, deductions allowed
    • When must estate tax returns be filed?
      Within one year from decedent’s death
    • What is required if the gross value exceeds P5,000,000?
      Statements certified by a CPA
    • What must be included in the CPA's certified statements?
      1. Itemized assets of the decedent
      2. Itemized deductions
      3. Amount of tax due
    • What is the time limit for filing a certified copy of the schedule of partition?
      Within 30 days after the court order
    • Who can extend the filing of estate tax returns?
      The Commissioner can extend it
    • What is the maximum extension period for filing returns?
      Not exceeding 30 days
    • Where should estate tax returns be filed?
      1. Authorized agent bank
      2. Revenue District Office
      3. Authorized tax software provider
    • When must the estate tax be paid?
      At the time the return is filed
    • What are the extensions for payment of estate tax?
      • Court settlement: not to exceed 5 years
      • Extra-judicial settlement: not to exceed 2 years
    • What is required if an extension for payment is granted?
      A bond may be required by the Commissioner
    • When is extension of payment not allowed?
      In cases of negligence or fraud
    • Who is liable for payment of estate tax?
      • Executor or administrator primarily liable
      • Heirs or beneficiaries have subsidiary liability
    • What are the conditions for payment in installments?
      • Allowed if cash is insufficient
      • Must be within two years
      • No civil penalties for installment payments
    • What is the maximum amount for over-the-counter cash payment?
      P10,000.00
    • What types of payments are not acceptable?
      • Accommodation checks
      • Second endorsed checks
      • Stale checks
      • Postdated checks
      • Unsigned checks
      • Altered checks
    • How many copies of BIR Form No. 1801 must be filed?
      In triplicate
    • What must happen upon filing the estate tax return?
      Estate tax due must be paid
    • What must the machine validation reflect upon payment?
      Date of payment, amount paid
    • What is the governing property regime for married decedents without a prenuptial agreement?
      • Married before August 8, 1988: Conjugal Partnership of Gains
      • Married on or after August 8, 1988: Absolute Community of Properties
    • What are the components of the gross estate for married decedents under CPOG?
      • Exclusive properties of the decedent
      • Common properties
      • Exclusive properties of the surviving spouse
    • What properties are included in the gross estate under Conjugal Partnership of Gains?
      • Properties brought into marriage
      • Properties acquired during marriage
      • Properties obtained from labor or profession
      • Fruits from common property
      • Properties acquired by chance
    • What properties are excluded from the gross estate under Conjugal Partnership of Gains?
      • Exclusive properties of the surviving spouse
    • What properties are acquired by gratuitous title during marriage?
      Properties acquired without compensation
    • What types of properties are obtained from labor during marriage?
      Properties from labor, industry, or profession
    • What does it mean to acquire properties by right of redemption?
      Acquiring properties through reclaiming ownership
    • What are the fruits due during marriage from common property?
      Natural, industrial, or civil fruits received
    • What properties are acquired with exclusive money of either spouse?
      Properties bought solely with one spouse's money
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