Estate Tax
Estate Tax
Estate Tax
TRANSFER TAX
1. ESTATE TAX
2. INHERITANCE TAX
ESTATE TAX RATE
Gross Estate xx
Less: Deduction xx
Net Taxable Estate xx
Multiply: Estate Tax Rate %
Estate Tax Due xx
Less: Tax Credit xx
Amount of Estate Tax Due xx
Take this situation for example:
Say you receive an inheritance worth ₱5 million with all the necessary
deductions worth ₱1.5 million. After subtracting all the liabilities from the
gross estate, you’re left with a net estate of ₱3.5 million.
Since estate tax is 6% of your net estate, multiply your ₱3.5 million by 0.06.
You’ll then get ₱210,000, which will be your estate tax.
DETERMINATION OF VALUE OF ESTATE
USUFRUCT
PROPERTIES
EXEMPTIONS FROM THE TAX
4. Copies
D. DONOR'S (GIFT) TAX
1. The gift tax was enacted originally 2. The donor's tax is also intended to
to supplement the estate and prevent the avoidance of income tax
inheritance taxes by preventing their through the device of splitting income
avoidance by those who give away among numerous donees, with the donor
property and money in anticipation thereby escaping the effect of the
of death, through the taxation of progressive rates of income taxation.
gifts inter vivos without which, the
property would be subjected to the
said taxes.
REQUISITES OF A TAXABLE GIFT
The donor's tax applies whether the transfer is in trust or otherwise, whether
the gift is direct or indirect, and whether the property is real or personal,
tangible or intangible. Where property is transfered for less than an adequate
and full consideration in money or money's worth, then the amount by which
the fair market value of the property exceeded the value of the consideration
shall, for the purpose of the tax be deemed a gift and shall be included in
computing the amount of gifts during the taxable year.
NET GIFT
Tax imposed on net gift The donor's tax is computed upon the
basis of the total net gifts made during the calendar year.
FORMULA
Exemptions or deductions from gifts The following are also
deductible from the value of the property donated:
1. When
2. Where
3. Contents
4. Copies
REPORTERS