New Estate Tax

under TRAIN SECTION 1. SCOPE. – Pursuant to the provisions

of Sec. 244 of the National Internal Revenue Code of
1997, as amended (NIRC), and Sec. 84 of Republic
Act No. 10963, otherwise known as the “Tax Reform
Here’s everything you need to know about the
for Acceleration and Inclusion (TRAIN) Law”, these
new Estate Taxation in the
Regulations are hereby issued to consolidate the
Philippines under the approved TRAIN tax law.
rules governing the imposition and payment of the
The Bureau of Internal Revenue (BIR) has
estate and donor’s tax incorporating the provisions of
released Revenue Regulations No. 12-2018, which
the TRAIN Law, particularly the provisions in
contains the implementing guidelines related to the
Chapters I and II of Title III of the NIRC, thereby
revised Estate Tax and Donor’s Taxes to be used
repealing Revenue Regulations (RR) No. 2- 2003, as
starting 2018, as mandated in the TRAIN bill signed
amended.
into law by Pres. Rodrigo Duterte.
ESTATE TAX
Here’s a copy of the BIR’s Revenue Regulation
SEC. 2. RATE OF ESTATE TAX. – The net
on Estate Taxes in the Philippines.
BIR Revenue Regulations No. 12-2018 estate of every decedent, whether resident or non-
resident of the Philippines, as determined in
Issued on: January 25, 2018
accordance with the NIRC, shall be subject to an
estate tax at the rate of six percent (6%).
Consolidated Revenue Regulations on
SEC. 3. THE LAW THAT GOVERNS THE
Estate Tax and Donor’s Tax Incorporating
IMPOSITION OF ESTATE TAX. – It is a well-
the Amendments Introduced by Republic
settled rule that estate taxation is governed by the
Act No. 10963, Otherwise Known as the
statute in force at the time of death of the decedent.
“Tax Reform for Acceleration and
The estate tax accrues as of the death of the
Inclusion (TRAIN) Law”
decedent and the accrual of the tax is distinct from
the obligation to pay the same. Upon the death of the SEC. 5. VALUATION OF THE GROSS
decedent, succession takes place and the right of the ESTATE. – The properties comprising the gross
estate shall be valued according to their fair market
State to tax the privilege to transmit the estate vests
value as of the time of decedent’s death.
instantly upon death.
If the property is a real property, the appraised value
Gross Estate thereof as of the time of death shall be, whichever is
the higher of –
SEC. 4. COMPOSITION OF THE GROSS
ESTATE. – The gross estate of a decedent shall be
comprised of the following properties and interest  (1) The fair market value as determined
therein at the time of his/her death, including by the Commissioner, or
revocable transfers and transfers for insufficient  (2) The fair market value as shown in the
consideration, etc.: schedule of values fixed by the provincial and
city assessors, whichever is higher.
 1. Residents and citizens – all properties, For purposes of prescribing real property values, the
real or personal, tangible or intangible, Commissioner is authorized to divide the Philippines
wherever situated. into different zones or areas and shall, upon
 2. Non-resident aliens – only properties consultation with competent appraisers, both from
situated in the Philippines provided, that, with the private and public sectors, determine the fair
respect to intangible personal property, its market value of real properties located in each zone
inclusion in the gross estate is subject to the or area.
rule of reciprocity provided for under Section
104 of the NIRC. In the case of shares of stocks, the fair market value
Provided, That amounts withdrawn from the deposit shall depend on whether the shares are listed or
accounts of a decedent subjected to the 6% final unlisted in the stock exchanges. Unlisted common
withholding tax imposed under Section 97 of the shares are valued based on their book value while
NIRC, shall be excluded from the gross estate for unlisted preferred shares are valued at par value. In
purposes of computing the estate tax. determining the book value of common shares,
appraisal surplus shall not be considered as well as
the value assigned to preferred shares, if there are SEC 6. COMPUTATION OF THE NET ESTATE
any. On this note, the valuation of unlisted shares OF A DECEDENT WHO IS EITHER A
shall be exempt from the provisions of RR No. 06- CITIZEN OR RESIDENT OF THE
2013, as amended. PHILIPPINES – The value of the net estate of a
citizen or resident alien of the Philippines shall be
determined by deducting from the value of the gross
For shares which are listed in the stock exchanges,
estate the following items of deduction:
the fair market value shall be the arithmetic mean
between the highest and lowest quotation at a date 1. Standard deduction. – A deduction in the
nearest the date of death, if none is available on the amount of Five Million Pesos (P5,000,000) shall be
date of death itself. allowed without need of substantiation. The full
amount of P5,000,000 shall be allowed as deduction
The fair market value of units of participation in any for the benefit of the decedent. The presentation of
association, recreation or amusement club (such as such deduction in the computation of the net taxable
golf, polo, or similar clubs), shall be the bid price estate of the decedent is properly illustrated in these
nearest the date of death published in any Regulations.
newspaper or publication of general circulation.
2. Claims against the estate. – The word “claims”
is generally construed to mean debts or demands of
To determine the value of the right to usufruct, use or a pecuniary nature which could have been enforced
habitation, as well as that of annuity, there shall be against the deceased in his lifetime and could have
taken into account the probable life of the beneficiary been reduced to simple money judgements. Claims
in accordance with the latest basic standard mortality against the estate or indebtedness in respect of
table, to be approved by the Secretary of Finance, property may arise out of: (1) Contract; (2) Tort; or (3)
upon recommendation of the Insurance Operation of Law.
Commissioner.
2.1. Requisites for Deductibility of Claims
Against the Estate –
Deductions from Gross Estate
 2.1.1. The liability represents a personal interest as of the time of death. If the creditor is a
obligation of the deceased existing at the time corporation, the sworn certification should be signed
of his death; by the President, or Vice- President, or other
 2.1.2. The liability was contracted in good principal officer of the corporation. If the creditor is a
faith and for adequate and full consideration partnership, the sworn certification should be signed
in money or money’s worth; by any of the general partners. In case the creditor is
 2.1.3. The claim must be a debt or claim a bank or other financial institutions, the Certification
which is valid in law and enforceable in court; shall be executed by the branch manager of the
 2.1.4. The indebtedness must not have bank/financial institution which monitors and
been condoned by the creditor or the action to manages the loan of the decedent-debtor. If the
collect from the decedent must not have creditor is an individual, the sworn certification
prescribed. should be signed by him. In any of these cases, the
2.2. Substantiation Requirements. – All one who should certify must not be a relative of
unpaid obligations and liabilities of the decedent at the borrower within the fourth civil degree, either by
the time of his death are allowed as deductions from consanguinity or affinity, except when the
gross estate. Provided, however, that the following requirement below is complied with.
requirements/documents are complied
with/submitted: When the lender, or the President/Vice-
2.2.1. In case of simple loan (including advances): president/principal officer of the creditor-corporation,
or the general partner of the creditor-partnership is a
2.2.1.1 The debt instrument must be duly notarized relative of the debtor in the degree mentioned above,
at the time the indebtedness was incurred, such as a copy of the promissory note or other evidence of
promissory note or contract of loan, except for loans the indebtedness must be filed with the RDO having
granted by financial institutions where notarization is jurisdiction over the borrower within fifteen days from
not part of the business practice/policy of the the execution thereof.
financial institution-lender;
2.2.1.3. In accordance with the requirements as
2.2.1.2. Duly notarized Certification from the creditor prescribed in existing or prevailing internal revenue
as to the unpaid balance of the debt, including issuances, proof of financial capacity of the creditor
to lend the amount at the time the loan was granted, 2.2.2.1. Pertinent documents evidencing the
as well as its latest audited balance sheet with a purchase of goods or service, such as sales
detailed schedule of its receivable showing the invoice/delivery receipt (for sale of goods), or
unpaid balance of the decedent-debtor. In case the contract for the services agreed to be rendered (for
creditor is an individual who is no longer required to sale of service), as duly acknowledged, executed
file income tax returns with the Bureau, a duly and signed by decedent debtor and creditor, and
notarized Declaration by the creditor of his capacity statement of account given by the creditor as duly
to lend at the time when the loan was granted received by the decedent debtor;
without prejudice to verification that may be made by
the BIR to substantiate such declaration of the
2.2.2.2. Duly notarized Certification from the creditor
creditor. If the creditor is a non-resident, the
as to the unpaid balance of the debt, including
executor/administrator or any of the legal heirs must
interest as of the time of death. If the creditor is a
submit a duly notarized declaration by the creditor of
corporation, the sworn Certification should be signed
his capacity to lend at the time when the loan was
by the President, or Vice- President, or other
granted, authenticated or certified to as such by the
principal officer of the corporation. If the creditor is a
tax authority of the country where the non-resident
partnership, the sworn certification should be signed
creditor is a resident;
by any of the general partners. If the creditor is a
sole proprietorship, the sworn certification should be
2.2.1.4. A statement under oath executed by the signed by the owner of the business. In any of these
administrator or executor of the estate reflecting the cases, the one who issues the certification must not
disposition of the proceeds of the loan if said be a relative of the decedent-debtor within the fourth
loan was contracted within three (3) years prior to the civil degree, either by consanguinity or affinity,
death of the decedent; except when the requirement below is complied with.

2.2.2. If the unpaid obligation arose from purchase of When the lender, or the President/Vice-
goods or services: President/principal officer of the creditor-corporation,
or the general partner of the creditor-partnership is a
relative of the debtor in the degree mentioned above,
a copy of the promissory note or other evidence of
the indebtedness must be filed with the RDO having 4. Unpaid mortgages, taxes and casualty
jurisdiction over the borrower within fifteen days from losses.
the execution thereof. 4.1. Unpaid mortgages upon, or any indebtedness in
respect to, property where the value of the
decedent’s interest therein, undiminished by such
2.2.2.3. Certified true copy of the latest audited
mortgage or indebtedness, is included in the value of
balance sheet of the creditor with a detailed schedule
the gross estate. The deduction herein allowed in the
of its receivable showing the unpaid balance of the
case of claims against the estate, unpaid mortgages
decedent-debtor. Moreover, a certified true copy of
or any indebtedness shall, when founded upon a
the updated latest subsidiary ledger/records of the
promise or agreement, be limited to the extent that
debt of the debtor-decedent, (certified by the creditor,
they were contracted bona fide and for an adequate
i.e., the officers mentioned in the preceding
and full consideration in money or money’s worth.
paragraphs) should likewise be submitted.

4.2. Taxes which have accrued as of the death of the

2.2.3. Where the settlement is made through the
decedent which were unpaid as of the time of death.
Court in a testate or intestate proceeding, pertinent
This deduction will not include income tax upon
documents filed with the Court evidencing the claims
income received after death, or property taxes not
against the estate, and the Court Order approving
accrued before his death, or the estate tax due from
the said claims, if already issued, in addition to the
the transmission of his estate.
documents mentioned in the preceding paragraphs.

4.3. There shall also be deducted losses incurred

3. Claims of the deceased against insolvent persons
during the settlement of the estate arising from fires,
as defined under R.A. 10142 (“The Financial
storms, shipwreck, or other casualties, or from
Rehabilitation and Insolvency Act (FRIA) of 2010”)
robbery, theft or embezzlement, when such losses
and other existing laws, where the value of the
are not compensated for by insurance or otherwise,
decedent’s interest therein is included in the value of
and if at the time of the filing of the return such
the gross estate.
losses have not been claimed as a deduction for
income tax purposes in an income tax return, and
provided that such losses were incurred not later
than the last day for the payment of the estate tax as inheritance, or which can be identified as having
prescribed in Subsection (A) of Section 91. been acquired in exchange for property so received:
 a. One hundred percent (100%) of the
value if the prior decedent died within one
In case unpaid mortgage payable is being claimed by
(1) year prior to the death of the decedent, or
the estate, verification must be made as to who was
if the property was transferred to him by gift,
the beneficiary of the loan proceeds. If the loan is
within the same period prior to his death;
found to be merely an accommodation loan where
 b. Eighty percent (80%) of the value, if
the loan proceeds went to another person, the value
the prior decedent died more than one (1)
of the unpaid loan must be included as a receivable
of the estate. If there is a legal impediment to year but not more than two (2) years prior to
recognize the same as receivable of the estate, said the death of the decedent, or if the property
unpaid obligation/mortgage payable shall not be was transferred to him by gift within the same
allowed as a deduction from the gross estate. period prior to his death;
 c. Sixty percent (60%) of the value, if the
prior decedent died more than two (2) years
In all instances, the mortgaged property, to the extent but not more than three (3) years prior to the
of the decedent’s interest therein, should always death of the decedent, or if the property was
form part of the gross taxable estate. transferred to him by gift within the same
period prior to his death;
5. Property previously taxed. – An amount equal  d. Forty percent (40%) of the value, if the
to the value specified below of any property forming prior decedent died more than three (3) years
part of the gross estate situated in the Philippines of but not more than four (4) years prior to the
any person who died within five (5) years prior to the death of the decedent, or if the property was
death of the decedent, or transferred to the decedent transferred to him by gift within the same
by gift within five (5) years prior to his death, where period prior to his death; and
such property can be identified as having been  e. Twenty percent (20%) of the value, if
received by the decedent from the donor by gift, or the prior decedent died more than four (4)
from such prior decedent by gift, bequest, devise or years but not more than five (5) years prior to
the death of the decedent, or if the property
was transferred to him by gift within the same 6. Transfers for public use. – The amount of all
period prior to his death. bequests, legacies, devises or transfers to or for the
These deductions shall be allowed only where a use of the Government of the Republic of the
donor’s tax, or estate tax imposed under Title III of Philippines or any political subdivision thereof, for
the NIRC was finally determined and paid by or on exclusively public purposes.
behalf of such donor, or the estate of such prior 7. The Family Home. – An amount equivalent to
decedent, as the case may be, and only in the the current fair market value of the decedent’s family
amount finally determined as the value of such home: Provided, however, that if the said current fair
property in determining the value of the gift, or the market value exceeds Ten million pesos
gross estate of such prior decedent, and only to the (P10,000,000), the excess shall be subject to estate
extent that the value of such property is included in tax.
the decedent’s gross estate, and only if, in
determining the value of the net estate of the prior SEC. 7. COMPUTATION OF THE NET
decedent, no deduction is allowable under this Item, ESTATE OF A DECEDENT WHO IS
in respect of the property or properties given in A NON-RESIDENT ALIEN OF THE
exchange therefore. Where a deduction was allowed PHILIPPINES. – The value of the net estate of a
of any mortgage or other lien in determining the decedent who is a non-resident alien in the
donor’s tax, or the estate tax of the prior decedent, Philippines shall be determined by deducting from
which was paid in whole or in part prior to the the value of that part of his gross estate which at the
decedent’s death, then the deduction allowable time of his death is situated in the Philippines the
under this Item shall be reduced by the amount so following items of deductions:
paid. Such deduction allowable shall be reduced by 1. Standard deduction. – A deduction in the
an amount which bears the same ratio to the amount of Five Hundred Thousand Pesos
amounts allowed as deductions under Items 2, 3, 4 (P500,000) shall be allowed without need of
and 6 of this Subsection as the amount otherwise substantiation. The full amount of P500,000 shall be
deductible under this Item bears to the value of the allowed as deduction for the benefit of the decedent.
decedent’s estate. Where the property referred to 2. The proportion of the total losses and
consists of two (2) or more items, the aggregate indebtedness which the value of such part bears to
value of such items shall be used for the purpose of the value of his entire gross estate wherever
computing the deduction.
situated. Losses and indebtedness shall include the SEC. 9. TIME AND PLACE OF FILING
following: ESTATE TAX RETURN AND PAYMENT OF
ESTATE TAX DUE. –
 2.1. Claims against the estate. 1. Estate Tax Returns. – In all cases of transfers
 2.2. Claims of the deceased against subject to the tax imposed herein, or regardless of
insolvent persons where the value of the the gross value of the estate, where the said estate
interest therein is included in the value of the consists of registered or registrable property such as
gross estate. real property, motor vehicle, shares of stock or other
 2.3. Unpaid mortgages, taxes and similar property for which a Certificate Authorizing
casualty losses. Registration from the Bureau of Internal Revenue is
The allowable deduction under this subsection shall required as a condition precedent for the transfer of
be computed using the following formula: ownership thereof in the name of the transferee, the
executor, or the administrator, or any of the legal
[Phil Gross Estate / World Gross Estate] x [Item No. heirs, as the case may be, shall file a return under
2] = Allowable Deduction oath.

Estate tax returns showing a gross value exceeding

3. Property previously taxed. Five million pesos (P5,000,000) shall be supported
4. Transfers for public use. with a statement duly certified to by a certified Public
5. Net share of the surviving spouse in the Accountant containing the following:
conjugal property or community property.
Unless otherwise provided in this section, the rules
1.1 Itemized assets of the decedent with their
for the availment of deductions in the preceding
corresponding gross value at the time of his death, or
section shall apply.
in the case of a nonresident, not a citizen of the
Philippines, of that part of his gross estate situated in
Time & Place of Filing – Estate Tax the Philippines;
1.2. Itemized deductions from gross estate allowed in 4. Time for payment of the estate tax. – As a
Section 86; and general rule, the estate tax imposed under the NIRC
shall be paid at the time the return is filed by the
executor, administrator or the heirs.
1.3. The amount of tax due whether paid or still due
and outstanding. 5. Extension of time to pay estate tax. – When
the Commissioner finds that the payment of the
2. Time for filing estate tax return. – For estate tax or of any part thereof would impose undue
purposes of determining the estate tax, the estate tax hardship upon the estate or any of the heirs, he may
return shall be filed within one (1) year from the extend the time for payment of such tax or any part
decedent’s death. The Court approving the project of thereof not to exceed five (5) years in case the estate
partition shall furnish the Commissioner with a is settled through the courts, or two (2) years in case
certified copy thereof and its order within thirty (30) the estate is settled extrajudicially. In such case, the
days after promulgation of such order. amount in respect of which the extension is granted
shall be paid on or before the date of the expiration
3. Extension of time to file estate tax return. – of the period of the extension, and the running of the
The Commissioner or any Revenue Officer statute of limitations for deficiency assessment shall
authorized by him pursuant to the NIRC shall have be suspended for the period of any such extension.
authority to grant, in meritorious cases, a reasonable
extension, not exceeding thirty (30) days, for filing Where the request for extension is by reason of
the return. The application for the extension of time negligence, intentional disregard of rules and
to file the estate tax return must be filed with the regulations, or fraud on the part of the taxpayer, no
Revenue District Office (RDO) where the estate is extension will be granted by the Commissioner.
required to secure its Taxpayer Identification Number
(TIN) and file the tax returns of the estate, which If an extension is granted, the Commissioner or his
RDO, likewise, has jurisdiction over the estate tax duly authorized representative may require the
return required to be filed by any party as a result of executor, or administrator, or beneficiary, as the
the distribution of the assets and liabilities of the case may be, to furnish a bond in such amount, not
decedent. exceeding double the amount of the tax and with
such sureties as the Commissioner deems
necessary, conditioned upon the payment of the said remaining balance thereof shall be due and
tax in accordance with the terms of the extension. demandable subject to the applicable
penalties and interest reckoned from the
prescribed deadline for filing the return and
Any amount paid after the statutory due date of the
payment of the estate tax; and
tax, but within the extension period, shall be subject
 v. No civil penalties or interest may be
to interest but not to surcharge.
imposed on estates permitted to pay the
estate tax due by installment. Nothing in this
6. Payment of the estate tax by installment subsection, however, prevents the
and partial disposition of estate. – In case of Commissioner from executing enforcement
Insufficiency of cash for the immediate payment of action against the estate after the due date of
the total estate tax due, the estate may be allowed to the estate tax provided that all the applicable
pay the estate tax due through the following options, laws and required procedures are
including the corresponding terms and conditions: followed/observed.
6.1. Cash installment 6.2. Partial disposition of estate and
application of its proceeds to the estate tax
 i. The cash installments shall be made
due
within two (2) years from the date of filing of
the estate tax return; i. The disposition, for purposes of this option, shall
 ii. The estate tax return shall be filed refer to the conveyance of property, whether real,
within one year from the date of decedent’s personal or intangible property, with the equivalent
death; cash consideration;
 iii. The frequency (i.e., monthly,
quarterly, semi-annually or annually), deadline
and amount of each installment shall be ii. The estate tax return shall be filed within one year
from the date of decedent’s death;
indicated in the estate tax return, subject to
the prior approval by the BIR;
 iv. In case of lapse of two years without iii. The written request for the partial disposition of
the payment of the entire tax due, the estate shall be approved by the BIR. The said
request shall be filed, together with a notarized eCAR(s) on the remaining properties until the
undertaking that the proceeds thereof shall be payment of the remaining balance of the estate tax
exclusively used for the payment of the total estate due, including the penalties and interest.
tax due;
7. Request for Extension of Time, Installment
iv. The computed estate tax due shall be allocated in Payment and Partial Disposition of Estate. –
proportion to the value of each property; For purposes of these Regulations, the request for
extension of time to file the return, extension of time
to pay estate tax and payment by installment shall be
v. The estate shall pay to the BIR the proportionate
filed with the Revenue District Officer (RDO) where
estate tax due of the property intended to be
the estate is required to secure its TIN and file the
disposed of;
estate tax return. This request shall be approved by
the Commissioner or his duly authorized
vi. An electronic Certificate Authorizing Registration representative.
(eCAR) shall be issued upon presentation of the
proof of payment of the proportionate estate tax due 8. Place of filing the return and payment of
of the property intended to be disposed. Accordingly, the tax. – In case of a resident decedent, the
eCARs shall be issued as many as there are administrator or executor shall register the estate of
properties intended to be disposed to cover the total the decedent and secure a new TIN therefor from the
estate tax due, net of the proportionate estate tax(es) Revenue District Office where the decedent was
previously paid under this option; and domiciled at the time of his death and shall file the
estate tax return and pay the corresponding estate
tax with the Accredited Agent Bank (AAB), Revenue
vii. In case of failure to pay the total estate tax due
District Officer or Revenue Collection Officer having
out from the proceeds of the said disposition, the
jurisdiction on the place where the decedent was
estate tax due shall be immediately due and
domiciled at the time of his death, whichever is
demandable subject to the applicable penalties and
applicable, following prevailing collection rules and
interest reckoned from the prescribed deadline for
procedures.
filing the return and payment of the estate tax,
without prejudice of withholding the issuance of
In case of a non-resident decedent, whether non- payment of the tax. The eCAR pertaining to such
resident citizen or non-resident alien, with executor estate issued by the Commissioner or the Revenue
or administrator in the Philippines, the estate tax District Officer (RDO) having jurisdiction over the
return shall be filed with and the TIN for the estate estate, will serve as the authority to distribute the
shall be secured from the Revenue District Office remaining/distributable properties/share in the
where such executor or administrator is registered: inheritance to the heir or beneficiary. The executor or
Provided, however, that in case the executor or administrator of an estate has the primary obligation
administrator is not registered, the estate tax return to pay the estate tax but the heir or beneficiary has
shall be filed with and the TIN of the estate shall be subsidiary liability for the payment of that portion of
secured from the Revenue District Office having the estate which his distributive share bears to the
jurisdiction over the executor or administrator’s legal value of the total net estate. The extent of his liability,
residence. Nonetheless, in case the non-resident however, shall in no case exceed the value of his
decedent does not have an executor or administrator share in the inheritance.
in the Philippines, the estate tax return shall be filed
with and the TIN for the estate shall be secured from SEC. 10. PAYMENT OF TAX ANTECEDENT
the Office of the Commissioner through RDO No. 39- TO THE TRANSFER OF SHARES, BONDS
South Quezon City. OR RIGHTS AND BANK DEPOSITS
WITHDRAWAL. – There shall not be transferred to
any new owner in the books of any corporation,
The foregoing provisions notwithstanding, the sociedad anonima, partnership, business, or industry
Commissioner of Internal Revenue may continue to organized or established in the Philippines any
exercise his power to allow a different venue/place in share, obligation, bond or right by way of gift inter
the filing of tax returns. vivos or mortis causa, legacy or inheritance, unless
an eCAR is issued by the Commissioner or his duly
9. Liability for payment. – The estate tax imposed authorized representative.
under the NIRC shall be paid by the executor or
administrator before the delivery of the distributive If a bank has knowledge of the death of a person,
share in the inheritance to any heir or beneficiary. who maintained a bank deposit account alone, or
Where there are two or more executors or jointly with another, it shall allow the withdrawal from
administrators, all of them are severally liable for the the said deposit account, subject to a final
withholding tax of six percent (6%) of the amount to In instances where the bank deposit accounts have
be withdrawn, provided that the withdrawal shall only been duly included in the gross estate of the
be made within one year from the date of the decedent and the estate tax due thereon paid, the
decedent. The bank is required to file the prescribed executor, administrator, or any of the legal heirs shall
quarterly return on the final tax withheld on or before present the eCAR issued for the said estate prior to
the last day of the month following the close of the withdrawing from the bank deposit account. Such
quarter during which the withholding was made. The withdrawal shall no longer be subject to the
bank shall issue the corresponding BIR Form No. withholding tax imposed under this section.
2306 certifying such withholding. In all cases, the
final tax withheld shall not be refunded, or credited
EFFECTIVITY – These regulations are effective
on the tax due on the net taxable estate of the
beginning January 1, 2018, the effectivity of the
decedent.
TRAIN Law.

The executor, administrator, or any of the legal heirs, Source: Bureau of Internal Revenue (BIR),
withdrawing from the deposit account shall provide Department of Finance Philippines (DOF)
the bank where such withdrawal shall be made, with
the TIN of the estate of the decedent. For this
purpose, the bank shall require prior to such
withdrawal, the presentation of BIR Form No. 1904 of
the estate, duly stamped received by the BIR,.
Further, all withdrawal slips shall contain the
following terms and conditions: (a) a sworn
statement by any one of the joint depositors to the
effect that all of the joint depositors are still living at
the time of withdrawal; and, (b) a statement that the
withdrawal is subject to the final withholding tax of
6%.