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PLEASE

SHUT-
OFF
YOUR
CELL -
PHONES
OPENING
PRAYERS
Our Father
Hail Mary
Glory Be
TRANSFER
TAXES
BASIC
CONCEPTS
TRANSFER
TAXES
Tax on sale of shares
Estate taxes
Donors taxes
SALES OF SHARES
Sale, barter, exchange
Not securities dealer
Listed and traded in
stock exchange
TAX RATE
1/2 of 1% of value
Exemption
- IPO
GROSS ESTATE
Filipino or resident
alien
Non-resident alien
FILIPINO OR
RESIDENT ALIEN
Real property where-
ever situated
Personal property
wherever situated
Continuation .
To the extent of the
decedents interest
existing at the time
of death
NON RESIDENT
ALIEN
Real property situated
in Phil.
Personal property
situated in Phil.
Continuation .
To the extent of the
decedents interest
existing at the time
of death
INCLUDED
INTANGIBLE NON-
RESIDENT ALIEN
Franchise
Share, obligations, bonds
Shares or rights
RECIPROCITY
REGARDING
INTANGIBLES

NO INTEREST AT
DEATH BUT PART
OF ESTATE
Transfer in contem-
plation of death
Continuation .
Revocable transfers
Property passing
under general power
of appointment
Continuation .
Transfer for insuffi-
cient consideration
TRANSFER IN
CONTEMPLATION
OF DEATH
Transfer intended to
- Take effect in posses-
sion or enjoyment
- at or after death
Continuation .
Decedent retained for
his life or any period
not ascertainable w/o
reference to death
Continuation .
- The possession or
enjoyment of, the right
to income from the
property


Continuation .
- The right alone or with
any person to designate
the person who shall
o possess, or
o enjoy the prprty/incme
Continuation .
Exception
- Bona fide sale
- adequate
- full consideration
REVOCABLE
TRANSFER
Transfer subject to
any change at death
By decedent alone
or with any person
Continuation .
To alter, amend ,
revoke, or terminate
Power relinquished
in contemplation of
death
Continuation .
Exception
- Bona fide sale
- adequate
- full consideration
PASSING UNDER
GENERAL POWER
OF APPOINTMENT
General power of appt
Exercised by
decedent
- Will or deed

Continuation ..
In contemplation of
or intended to
- Take effect in posse-
ssion or enjoyment
- at or after death
Continuation .
By deed retained for
his life or any period
not ascertainable w/o
reference to death
Continuation .
- The possession or
enjoyment of, the
right to income from
the property


Continuation .
- The right alone or with
any person to designate
the person who shall
o possess, or
o enjoy the prprty/incme
Continuation .
Exception
- Bona fide sale
- adequate
- full consideration
TRANSFERS FOR
INSUFFICIENT
CONSIDERATION
The insufficient
consideration
EXCLUSIONS
Capital
Exempt acquisitions
and transmissions
Life insurance
EXEMPT ACQUI-
SITIONS AND
TRANSMISSIONS
Merger of usufruct
with naked title
Continuation .
From legatee or fiduciary
heir to fideicommissary
From first heir, legatee,
donee to another bene-
ficiary
Continuation .
Bequests, devices,
legacies or transfers
to social welfare,
cultural and charitable
institutions
LIFE INSURANCE
INCLUDED
Decedent took insurance
Beneficiary
- Estate, exectr, admtr,
- NOTA, revocable
LIFE INSURANCE
EXCLUDED
Others took insurance
Beneficiary not estate,
executor, administrator
Decedent took-others

DEDUCTIONS
Filipino or resident
alien
Non-resident alien
DEDUCTIONS:
Filipino or resident
alien
Expenses, losses, claims,
indebtedness and taxes
Property previously taxed
Transfers for public use

Continuation .
The Family Home
Standard deduction
Medical expenses
Amount received by heirs
under R.A. No. 4917
Share in conjugal property
DEDUCTIONS:
non-resident alien
Expenses, losses, claims,
indebtedness and taxes
Property previously taxed
Transfers for public use

Continuation .
Share in conjugal
property
DEDUCTIBILTY
Non-resident alien
- Include in estate return
- Value of gross estate
not situated in the
Philippines
EXPENSES
Funeral expenses
Judicial expenses of the
testamentary or
intestate proceedings
DEDUCTIBILITY
Filipino, res. alien:
- Actual funeral expenses,
or 5% of gross estate, not
to exceed P200,000

Continuation ..
Non-resident alien:
- Proportion which expenses,
losses, bears to total value
of entire gross estate

Total expenses
----------------------- X Total expenses = DFE
Total gross estate



FUNERAL EXPENSES
Mourning apparel: spouse,
unmarried, minor
Expenses for the wake
Publication for death ads
Telecommunications

Continuation .
Cost of burial plot, tomb-
stones, monument or
mausoleum but not upkeep
Interment and/or cremation
fees and charges
Other expenses incurred
Continuation .
for the performance of the
rites and ceremonies in-
cident to interment

NOT FUNERAL
Expenses incurred after
interment: prayers, masses
Portion of funeral and
burial expenses borne by
friends and relatives

JUDICIAL EXPENSES
Inventory taking of assets
Administration
Payment of debts
Distribution of estate
among the heirs

EXAMPLES
Fees of executor or ad-
ministrator
Attorneys fees
Court fees
Accountants fees

Continuation.
Appraisers fees
Clerk hire
Cost of preserving and
distributing the estate
Cost of storing or maintain-
ing estate property
Continuation.
Brokerage fees for selling
estate property

CLAIMS
Filipino, res. alien:
- Against the estate
- Duly notarized instrument
- W/in 3 years before death
statement of disposition
Continuation ..
Claims of the deceased
- Against insolvents
- Value included in the
gross estate
Non-resident alien:
- Proportion which claims



Continuation ..
bears to total value of entire
gross estate



INDEBTEDNESS
Filipino, res. alien:
Unpaid mortgages
- Value of interest in the
property undiminished
by the mortgage is
included in estate

Continuation ...
- Contracted bona fide
- Adequate considera-
tion in money
Non-resident alien:
- Proportion which indeb-
tedness ,bears to total

Continuation ...
value of entire gross
estate

LOSSES
Filipino, res. alien:
- Incurred during estates
settlement
- Arising from fires, storms,
shipwreck, or other ca-
sualties,or from theft,

Continuation.
robbery, embezzlement
not insured
- Not claimed as deduction
in ITR
- Incurred not later than
last day for payment of
estate tax
Continuation.
Non-resident alien:
- Proportion which loss
bears to value of entire
estate




TAXES
DEDUCTIBLE
Filipino, res. alien:
- Income tax upon income
received before death
- Property taxes accrued
before death
Continuation.
Non-resident alien:
- Proportion which taxes
bear to value of entire
estate
NON-DEDUCTIBLE
- Income taxes upon
income received after

Continuation.
death
- Property taxes accrued
after death
- Estate taxes



PROPERTY
PREVIOUSLY TAXED
An amount equal to the
reduction rates
Of property part of gross
estate
Continuation .
Situated in the Phil.
Person who died 5 years
prior to the death of the
decedent
Property identifiable as

Continuation .
received by decedent by
gift, bequest, devise,or
inheritance or exchange
REDUCTION RATES
100% one year prior
80% not more than 2 years
60% not more than 3 years
40% not more than 4 years
20% not more than 5 years

CONDITIONS
Estate/donors tax paid
Value used for determi-
ning estate/donors tax
Included in gross estate
No previous PPT

Continuation .
Deductions for mortgage
for estate/donors but paid
prior to death, reduce the
PPT deduction
Two or more items use the
aggregate value
Continuation .
Allowable deduction is
reduced by amount which
bears the same ratio to
deductions for expenses,
etc., as the amount other-
wise deductible for PPT

Continuation .
bears to the total estate.
FORMULA
Value of PPT
Less: Mortgage debt paid (1st)
First basis
Value of gross estate of dec.
Less: Expenses,etc.
2nd deduction

Continuation .
First basis
Less: 2nd deduction
Second basis
Multiplied by 100%, 80%, etc.
Vanishing deduction

TRANSFERS FOR
PUBLIC USE
All bequests, legacies,
devices, or transfers
For use of the GRP, or
any political subdivision
For public purposes




NET SHARE IN CON-
JUGAL PROPERTY
Net share of survivor
Diminished by obliga-
tions of the partnership
FAMILY HOME
Filipinos and res. aliens
Current market value
Not exceeding P1million
Certified by the barangay
captain of the locality
STANDARD
DEDUCTION
Filipinos and res. Aliens
P 1 million
MEDICAL EXPENSES
Filipinos and res. Aliens
Incurred by decedent
One year prior to death
Substantiated by receipts
Not exceeding P500 K
PROHIBITION ON
WITHDRAWAL
Bank with knowledge of
death of a person with a
bank deposit
- alone,or
- jointly with another
AUTHORITY FOR
WITHDRAWALS
CIR certifies estate taxes
paid
CIR authorizes up to
P20 even if tax not paid
VALUATION
USUFRUCT, ANNUITY
- Beneficiarys probable life
- In accordance with the
latest Basic Standard
Mortality Table
VALUATION
PROPERTY IN GENERAL
- Personal - CAFMV
- Real w/ever is higher
* BIR FMV = zonal
* Assessors value
Continuation .
SHARES OF STOCK
- Listed = arithmetic mean
between the highest and
lowest quote nearest to death
if none, date of death
- Not listed
* Common = book value
* Preferred = par value

NOTICE OF DEATH
Transfers subject tax or
Exempt from tax G.V.
exceeds P200K
Executor, administrator,
or any legal heir


Continuation .
Written notice of death
- Within 2 months after
decedents death, or
- Within 2 months after
qualifying as executor
or administrator

PLACE OF FILING
Resident register and secure
TIN with RDO of domicile
Non-resident with executor
RDO executor registered
No executor Office of Com
through RDO39-South QC


PAYMENT OF
TAXES
At time return filed
Extendible for
- 5 years judicial
- 2 years extrajudicial
LIABILITY FOR
TAXES
Primary personal liability
Executor, administrator
Subsidiary liability
Beneficiary
ESTATE PLANNING

DONORS TAX
Excise tax on inter vivos
transfers
Not on property
On trust or otherwise,
direct or indirect, etc.
STRANGER 30%
Not brother or sister,
spouse, ancestor and
lineal descendant
Relative by consanguinity
w/in 4th degree
EXEMPTIONS
Not over P100 K
Dowries up to P10 K
Use of Govt.
Educational, etc.
Political donations
Continuation .
Prizes and awards to
athletes
- local and intl
- held in RP or abroad
- sanctioned by N.S.A.
DO NOT
FORGET
YOU COULD BE A BAR
TOPNOTCHER
GOOD LUCK !
CONGRATULATI ONS
SEE YOU I N COURT !
THANK YOU
AND A GOOD
DAY TO ALL

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