TRANSFER TAX
1. Estate Tax
2. Donor’s Tax
ESTATE TAX
- Before makuha yung inheritance, need muna bayaran ang estate tax otherwise hindi
matatanggap yung asset.
4. Trademark
5. Goodwill
6. Computer Software
7. Bank Deposit – (To know if considered inside or outside of PH, The basis is the
branch)
8. Receivables – (The basis is the place of the debtor/ saan nakatira si Debtor)
9. Investment in Shares – (The basis is the company, whether Domestic or Foreign)
NOTE:
- Bank Deposit, Receivables and Investment in Shares are considered intangible in tax. In
Accounting, bank deposit is considered as cash, receivable is considered as receivable
and investment in shares is considered as investment.
- To be considered as a Domestic Company, it must be registered in SEC and most of the
owners are Filipino.
Gross Estate – halaga ng asset na naiwan of the person who passed away
Gross Estate
Citizen or Non-Resident
Resident Alien
All included
Outside Inside
Real /
All Excluded Intangible
Personal
With Without
Included
Reciprocity Reciprocity
Excluded Included
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NOTES:
1. Ang basis whether citizen, resident or non-resident is yung taong namatay, hindi yung
taong nakatanggap.
2. If foreigner/alien, they must reside in the Philippines for 183 days or more to be
classified as a resident.
3. Situs = place
4. Reciprocity – If sa batas kung saan nakatira ang non-resident alien is may batas din
regarding Estate Tax. (In other words, kung naniningil din sila ng estate tax.)
With Reciprocity – Naniningil ang government ng alien ng estate tax
Without Reciprocity – Hindi naniningil ang government ng alien ng estate tax
Example:
Citizen/Resident:
Example:
2. Decedents Interest
- Assets without physical substance
Example:
- May jeep si Mr. A and nirerentahan iyon ni Mr. B para ipasada and then ipinamana na ni
Mr. A kay Mr. B yung jeep, pero yung rent is kay Mr. A pa din ang punta however Mr. B
is now the possessor of the jeep. After 3 days, naaksidente si Mr. A and passed away.
Bakit isasama?
Even though Mr. B is now the possessor, yung rent is napupunta pa rin kay Mr. A, may
karapatan pa rin siya.
Revocable Transfer
Example:
A. Sinabi kay Mr. A ng doctor na hanggang next week na lamang siya so ipinamana ni Mr.
A sa anak niya ang kanyang jeep however after a few weeks, fake news daw pala kaya
binawi ni Mr. A sa kanyang anak ang jeep.
Example:
A. Special/Specific Appointment - Si Mr. A (husband) may jeep, namatay siya and then
ipinamana niya yon kay Mrs. B (wife) and then ang habilin (condition) mo sa kanya is
ipamana iyon kay C (son) kapag dumating siya sa right age.
B. General Appointment - Si Mr. A (husband) may jeep, namatay siya and then ipinamana
niya yon kay Mrs. B (wife) and then ang habilin (condition) mo sa kanya is ipamana iyon
kahit kanino.
What if namatay ang spouse na nagmana? (For the examples above, si Mrs. B)
- Masasama ang asset sa gross estate ni wife kapag general appointment kasi siya ang
considered na may ari. Kapag special appointment, excluded siya kasi hindi naman
talaga sa kanya designated ang asset and siya lang ang considered na tagapagtago.
- Ikaw ay nagbebenta kaya lang ibinebenta mo siya sa price na napakababa and kulang yung
consideration (what you get in exchange, like money) na natatanggap mo.
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Example:
A. Mr. A has a jeep and ibinenta niya kay Mr. B (son) ang jeep niya for the price of
Php.1.00 pero ang fair value of the jeep sa market is Php. 10.00.
In form, this is considered as a sale but the intention is parang inheritance/gift na siya. If
hindi mo siya ibinenta, Php.10.00 dapat ang masasama sa iyong gross estate kaso
ibinenta mo siya sa halagang Php. 1.00 so ayan na lang dapat however hindi pa rin lusot
iyon because the insufficiency na Php. 9.00 will still be included in the gross estate. So:
*FV at the time of transfer is only for testing while FV at the time of death ang imiminus.
(based kay sir)
Example:
A. Si Mr. A nagbenta ng jeep. The selling price is Php. 10.00, the fair value at the time
of transfer is Php. 11.00, the fair value at the time of death is Php. 12.00. How much
insufficient consideration will be included? Php. 2.00 (12.00 – 10.00)
B. Selling Price is Php. 10.00, fair value at the time of transfer is Php. 9.00, fair value at
the date of death, Php. 13.00. How much will be included in the insufficiency? None.
HOWEVER: Kapag isinama mo na siya sa gross estate, isasama mo rin siya sa deduction. May
receivable ka pero hindi mo macollect so parang wala ka ring asset.
So:
Claims against an insolvent person is included in the gross estate. (TOTAL AMOUNT)
Claims against an insolvent person is not included in the net estate. (Nabawas na)
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Life Insurance
Estate
Others (3rd
Executor
Person)
Administrator
Included Excluded
NOTES:
Example:
- Si Mr. A is may asawa (Mrs. B) and jeep, and then he passed away. Yung jeep is binili ni
Mr. A bago pa sila naging mag-asawa ni Mrs. B. Si Mrs. B is may make up. And then
meron silang common property. Nag-ipon sila and then nagbigay ng Php. 500,000.00
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each. So kasama ang jeep sa gross estate, common property is included and excluded
ang make up sa gross estate.
T/F
2. Group Insurance
3. Page 41 - 43
Deductions
Claims against
insolvent person
Losses
CLIT
Indebtedness
Ordinary TP
Taxes
Vanishing
Important to remember:
ORDINARY DEDUCTIONS
- Regular
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A. CLIT
Claims – Receivables
Kung ang receivable mo ay sa isang tao na insolvent, pwedeng ideduct siya. Isasama mo siya
sa Gross Estate and then isasama mo siya sa Deduction. Hindi mo siya pwedeng ignore na
lang because there are instances na ang tinatanong is magkano ang GE or Deduction.
Requirements:
Note: The only amount that must be included in the deduction is yung hindi na macocollect,
while in the Gross Estate naman, yung pinaka A/R mo in total.
2. Losses
Hindi ito yung loss na nalugi ka, ito
Requirements: is yung loss na nawala. You can
claim as deduction yung value of
a. Casualty losses – calamities; acts of Man and God.
the asset lost.
b. Included in Gross Estate
c. Not Insured - Since babayaran ka ni Ins. Comp, nabawi mo lang so wala talagang loss.
d. Not Claimed as Deduction for Income Tax
e. Happen during settlement
Settlement – payment ; panahon na magbabayad ng Estate Tax
How much?
Kung ano ang ginamit sa GE ayon na rin so kung
- Value of Asset Lost Fair Value doon, fair value din dito.
Example:
- Nung buhay pa si Mr. A, ang price ng car niya is Php. 10.00 and then nung namatay siya
is nandoon pa rin ang car niya so included in the gross estate. However before
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mabayaran ang estate tax is lumindol and nabagsakan ng building so naging loss na
siya, it can be claimed as allowable deduction. (YES)
- Nung buhay pa si Mr. A, may kotse siya and binaha iyon. Kapag pumanaw siya, hindi na
iyon pwede maisama as part of the Estate Tax since bago pa siya pumanaw is treated
as loss na ang car niya. (NO)
- What if nangyari siya after the payment of Estate Tax? Cannot be na. (NO)
3. Indebtedness (utang)
Ibabawas daw sa asset mo ito.
Requirements:
a. Personal Obligation (to give/ to deliver) [If real obligation – to do; Hindi kasama]
b. Good Faith
c. Not Illegal
How much?
- Value of Debt
Example:
Babayaran mo pa rin yung debt na Php. 3.00 however kukunin siya sa Php. 20.00 na
asset. Ibabawas yung Php. 3.00 kasi hindi naman na siya sa iyo and nabayaran na.
4. Taxes (unpaid)
Eto yung mga tax na hindi nabayaran noong
Requirements: buhay pa yung namatay.
How much?
Example:
- May parlor si Ms. A so may income tax siyang binabayaran since may kita siya.
However bago pa dumating ang period ng bayaran for income tax, pumanaw na si Ms.
A. So yung income tax na hindi pa nababayaran before mawala si Ms. A can be included
as an allowable deduction. (YES)
- Pwede rin ba ibawas yung income tax na naincur ng parlor ni Ms. A after death? (NO)
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How much?
Example:
- May naiwan na business si Mrs. A and isa itong school. After death, ibinigay niya iyon sa
government and ginawa itong public school. (YES)
- Ibinigay ni Mrs. A ang school sa government before death. (NO) Wala na kasi sa
possession ni Mrs. A ang school by the time na pumanaw siya.
- Value of school is Php. 100.00 – included in the Gross Estate; eto rin yung amount na
isasama sa Deductions.
C. VANISHING DEDUCTION
- Property previously taxed
- Yung ipinamana is ipapamana rin sa iba.
- Nabayaran na previously ng Estate Tax
Requirements:
1. Within 5 years - From the time that the previous owned died and the present owner died
2. Identified – Specific asset lamang ang masusubject to Vanishing Deduction; isa lang
3. Inside Philippines
4. Included in the Gross Estate
5. Previous Estate Tax is paid
6. No Vanishing Deduction on Previous Estate Tax
0 – 1 year 100%
1 – 2 years 80%
2 – 3 years 60%
3 – 4 years 40%
4 – 5 years 20%
5 years – above 0%
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How much?
Vanishing Deduction
1. Nung nakuha ni Mr. B kay Mr. A yung tricycle, nagbayad siya ng Estate Tax. Now,
pumanaw si Mr. B so ipapamana niya iyon kay Mr. C. So para hindi double ang naging
Estate Tax on the tricycle, babawasan siya with the use of Vanishing Deduction.