DEDUCTION Jan 1, 1986-July 27, 1992 Jan. 28, 1992-Dec. 31, 1997 Jan. 1, 1998-Dec.

31, 2017 Latest

(presidential decree no. 1994)
Residents and Citizens
1. Funeral Expense 5% of the gross estate but not Actual funeral expenses or in an Actual funeral expenses or in an Up to 200,000
to exceed 50,000 amount equal to 5% of the gross amount equal to 5% of the gross
estate, whichever is lower, but in no estate, whichever is lower, but in
case to exceed 100,000 no case to exceed 200,000
2. Family Home No provision Actual FMV or 1m, whichever is Actual FMV or 1m, whichever is Allowable deduction of 10M or
lower. Barangay Certification is lower. Barangay Certification is exemption capped at 10M. The
mandatory. mandatory. excess is subject to tax
3. Standard No provision No provision One million pesos (1,000,000) Allowable deduction of 5M. The
Deduction excess of 5M.
4. Medical Expenses No provision No provision Actual medical expenses Actual medical expenses incurred
incurred by the decedent within by the decedent within one year
one year prior to his death, prior death, substantiated with
substantiated with receipts and receipts and in no case to exceed
in no case to exceed five five hundred thousand pesos
thousand pesos (500,000) (500,000)
5. Judicial Expenses Actual judicial expenses of the Actual judicial expenses of the Actual judicial expenses of the Actual judicial expenses of the
testamentary or intestate testamentary or intestate testamentary or intestate testamentary or intestate
proceedings proceedings proceedings. proceedings.
6. Claims against the Outstanding amount as of Outstanding amount as of date of Outstanding amount as of date Outstanding amount as of date of
estate date of death with duly death with duly notarized document. of death with duly notarized death with duly notarized
notarized document. If the If the loan was contracted with 3 document. If the loan was document. If the loan was
loan was contracted with 3 years before the death, a statement contracted with 3 years before contracted with 3 years before the
years before the death, a showing the disposition of the the death, a statement showing death, a statement showing the
statement showing the proceeds of the loan is required the disposition of the proceeds disposition of the proceeds of the
disposition of the proceeds of of the loan is required loan is required
the loan is required
7. Claims against Total amount of claim Total amount of claim provided the Total amount of claim provided Total amount of claim provided
insolvent person provided the same is included same is included in the value of the the same is included in the value the same is included in the value
in the value of the gross estate gross estate of the decedent of the gross estate of the of the gross estate of the
of the decedent decedent decedent
8. Unpaid mortgages Outstanding amount as of Outstanding amount as of date of Outstanding amount as of date Outstanding amount as of date of
date of death, contracted death, contracted bona fide and for of death, contracted bona fide death, contracted bona fide and
bona fide and for an adequate an adequate and full consideration in and for an adequate and full for an adequate and full
and full consideration in money or money's worth. For consideration in money or consideration in money or
money or money's worth. For purposes of deduction, the value of money's worth. For purposes of money's worth. For purposes of
purposes of deduction, the the descent’s property undiminished deduction, the value of the deduction, the value of the
 value of the descent’s by such mortgage or indebtedness descent’s property descent’s property undiminished
property undiminished by must be included in the value of the undiminished by such mortgage by such mortgage or indebtedness
such mortgage or gross estate. or indebtedness must be must be included in the value of
indebtedness must be included in the value of the gross the gross estate.
included in the value of the estate.
gross estate.
9. Losses arising from Actual Value of Loss/es Actual Value of Loss/es provided (1) Actual Value of Loss/es provided Actual Value of Loss/es provided
fire, storms, provided (1) the loss/losses the loss/losses have not been (1) the loss/losses have not been (1) the loss/losses have not been
shipwreck, or the have not been compensated compensated by insurance or compensated by insurance or compensated by insurance or
casualty, or from by insurance or otherwise; (20 otherwise; (20 at the time of filing the otherwise; (20 at the time of otherwise; (20 at the time of filing
robbery, theft, or at the time of filing the return, return, such loss/es have not been filing the return, such loss/es the return, such loss/es have not
embezzlement such loss/es have not been claimed as deduction for income tax have not been claimed as been claimed as deduction for
claimed as deduction for purposes; and (3) such loss/es were deduction for income tax income tax purposes; and (3) such
income tax purposes; and (3) incurred not later than the last day of purposes; and (3) such loss/es loss/es were incurred not later
such loss/es were incurred not deadline for payment of estate tax. were incurred not later than the than the last day of deadline for
later than the last day of last day of deadline for payment payment of estate tax.
deadline for payment of of estate tax.
estate tax.
10. Property previously FVMV of the property FVMV of the property identified as FVMV of the property identified FVMV of the property identified as
taxed identified as received or received or transferred to the as received or transferred to the received or transferred to the
transferred to the decedent decedent by gift, bequest, devise or decedent by gift, bequest, decedent by gift, bequest, devise
by gift, bequest, devise or inheritance within 5 years prior to the devise or inheritance within 5 or inheritance within 5 years prior
inheritance within 5 years present decedent’s death which must years prior to the present to the present decedent’s death
prior to the present be included. decedent’s death which must be which must be included.
decedent’s death which must included.
be included.
Percentage of deduction: Percentage of deduction: Percentage of deduction: Percentage of deduction:
100%-if the transfer is within 1 100%-if the transfer is within 1 year 100%-if the transfer is within 1 100%-if the transfer is within 1
year prior to the death of the prior to the death of the present year prior to the death of the year prior to the death of the
present decedent decedent present decedent present decedent
80%- if the transfer is more 80%- if the transfer is more than 1 80%- if the transfer is more than 80%- if the transfer is more than 1
than 1 year but not more than year but not more than 2 years 1 year but not more than 2 years year but not more than 2 years
2 years
60%- if the transfer is more 60%- if the transfer is more than 2 60%- if the transfer is more than 60%- if the transfer is more than 2
than 2 years but not more years but not more than 3 years 2 years but not more than 3 years but not more than 3 years
than 3 years years
40%- if the transfer is more 40%- if the transfer is more than 3 40%- if the transfer is more than 40%- if the transfer is more than 3
than 3 years but not more years but not more than 4 years 3 years but not more than 4 years but not more than 4 years
than 4 years years
 20%- if the transfer is more 20%- if the transfer is more than 4 20%- if the transfer is more than 20%- if the transfer is more than 4
than 4 years but not more years but not more than 5 years 4 years but not more than 5 years but not more than 5 years
than 5 years years
11. Transfer for public The amount of all bequest, The amount of all bequest, legacies, The amount of all bequest, The amount of all bequest,
use legacies, or transfer, to or for or transfer, to or for the use of the legacies, or transfer, to or for the legacies, or transfer, to or for the
the use of the Government, or Government, or any political use of the Government, or any use of the Government, or any
any political subdivision subdivision thereof, for exclusively political subdivision thereof, for political subdivision thereof, for
thereof, for exclusively public public purposes exclusively public purposes exclusively public purposes
purposes
12. Transfer to the The amount of all the bequest, The amount of all the bequest, The amount of all the bequest, The amount of all the bequest,
surviving spouse legacies, devises, or transfer legacies, devises, or transfer to the legacies, devises, or transfer to legacies, devises, or transfer to
and children to the surviving spouse and surviving spouse and the legitimate the surviving spouse and the the surviving spouse and the
the legitimate or recognize or recognize natural or adopted legitimate or recognize natural legitimate or recognize natural or
natural or adopted children children not exceeding three (3) or adopted children not adopted children not exceeding
not exceeding three (3) thousand pesos each. exceeding three (3) thousand three (3) thousand pesos each.
thousand pesos each. pesos each.
13. Share in the The net share of the surviving The net share of the surviving spouse The net share of the surviving The net share of the surviving
conjugal spouse in the conjugal in the conjugal partnership property spouse in the conjugal spouse in the conjugal partnership
partnership property minus minus the obligations property partnership property minus the property minus the obligations
the obligations property chargeable to such property. obligations property chargeable property chargeable to such
chargeable to such property. to such property. property.
14. Amount Received No Provision No Provision Actual retirement benefits Actual retirement benefits
by Heirs Under R.A provided the same is included in provided the same is included in
No. 4917 the computation of gross estate the computation of gross estate
 DEDUCTION Jan 1, 1986-July 27, 1992 Jan. 28, 1992-Dec. 31, 1997 Jan. 1, 1998-Dec. 31, 2017 Latest
(presidential decree no. 1994)
Non-Resident aliens
(Starting from July 1, 1939, deductions enumerated here under shall only be allowed if the executor, administrator, or anyone of the heirs, as the
case may be, includes in the return required to be filled, the value at the time of his death of the part of the gross estate of the non-resident not
situated in the Philippines.)
1. Funeral Expense 5% of the gross estate but not Actual funeral expenses or in an Actual funeral expenses or in an Actual funeral expenses or in an
to exceed 50,000 amount equal to 5% of the gross amount equal to 5% of the gross amount equal to 5% of the gross
estate, whichever is lower, but in no estate, whichever is lower, but in estate, whichever is lower, but in
case to exceed 100,000 no case to exceed 200,000 no case to exceed 200,000
2. Family Home No provision No provision No provision No provision
3. Standard No provision No provision No provision No provision
Deduction
4. Medical Expenses No provision No provision No provision No provision
5. Judicial Expenses Actual judicial expenses of the Actual judicial expenses of the Actual judicial expenses of the Actual judicial expenses of the
testamentary or intestate testamentary or intestate testamentary or intestate testamentary or intestate
proceedings proceedings proceedings. proceedings.
6. Claims against the Outstanding amount as of Outstanding amount as of date of Outstanding amount as of date Outstanding amount as of date of
estate date of death with duly death with duly notarized document. of death with duly notarized death with duly notarized
notarized document. If the If the loan was contracted with 3 document. If the loan was document. If the loan was
loan was contracted with 3 years before the death, a statement contracted with 3 years before contracted with 3 years before the
years before the death, a showing the disposition of the the death, a statement showing death, a statement showing the
statement showing the proceeds of the loan is required the disposition of the proceeds disposition of the proceeds of the
disposition of the proceeds of of the loan is required loan is required
the loan is required
7. Claims against Total amount of claim Total amount of claim provided the Total amount of claim provided Total amount of claim provided
insolvent person provided the same is included same is included in the value of the the same is included in the value the same is included in the value
in the value of the gross estate gross estate of the decedent of the gross estate of the of the gross estate of the
of the decedent decedent decedent
8. Unpaid mortgages Outstanding amount as of Outstanding amount as of date of Outstanding amount as of date Outstanding amount as of date of
date of death, contracted death, contracted bona fide and for of death, contracted bona fide death, contracted bona fide and
bona fide and for an adequate an adequate and full consideration in and for an adequate and full for an adequate and full
and full consideration in money or money's worth. For consideration in money or consideration in money or
money or money's worth. For purposes of deduction, the value of money's worth. For purposes of money's worth. For purposes of
purposes of deduction, the the descent’s property undiminished deduction, the value of the deduction, the value of the
value of the descent’s by such mortgage or indebtedness descent’s property descent’s property undiminished
property undiminished by must be included in the value of the undiminished by such mortgage by such mortgage or indebtedness
such mortgage or gross estate. or indebtedness must be must be included in the value of
indebtedness must be the gross estate.
 included in the value of the included in the value of the gross
gross estate. estate.
9. Losses arising from Actual Value of Loss/es Actual Value of Loss/es provided (1) Actual Value of Loss/es provided Actual Value of Loss/es provided
fire, storms, provided (1) the loss/losses the loss/losses have not been (1) the loss/losses have not been (1) the loss/losses have not been
shipwreck, or the have not been compensated compensated by insurance or compensated by insurance or compensated by insurance or
casualty, or from by insurance or otherwise; (20 otherwise; (20 at the time of filing the otherwise; (20 at the time of otherwise; (20 at the time of filing
robbery, theft, or at the time of filing the return, return, such loss/es have not been filing the return, such loss/es the return, such loss/es have not
embezzlement such loss/es have not been claimed as deduction for income tax have not been claimed as been claimed as deduction for
claimed as deduction for purposes; and (3) such loss/es were deduction for income tax income tax purposes; and (3) such
income tax purposes; and (3) incurred not later than the last day of purposes; and (3) such loss/es loss/es were incurred not later
such loss/es were incurred not deadline for payment of estate tax. were incurred not later than the than the last day of deadline for
later than the last day of last day of deadline for payment payment of estate tax.
deadline for payment of of estate tax.
estate tax.
10. Property previously FVMV of the property FVMV of the property identified as FVMV of the property identified FVMV of the property identified as
taxed identified as received or received or transferred to the as received or transferred to the received or transferred to the
transferred to the decedent decedent by gift, bequest, devise or decedent by gift, bequest, decedent by gift, bequest, devise
by gift, bequest, devise or inheritance within 5 years prior to the devise or inheritance within 5 or inheritance within 5 years prior
inheritance within 5 years present decedent’s death which must years prior to the present to the present decedent’s death
prior to the present be included. decedent’s death which must be which must be included.
decedent’s death which must included.
be included.
Percentage of deduction: Percentage of deduction: Percentage of deduction: Percentage of deduction:
100%-if the transfer is within 1 100%-if the transfer is within 1 year 100%-if the transfer is within 1 100%-if the transfer is within 1
year prior to the death of the prior to the death of the present year prior to the death of the year prior to the death of the
present decedent decedent present decedent present decedent
80%- if the transfer is more 80%- if the transfer is more than 1 80%- if the transfer is more than 80%- if the transfer is more than 1
than 1 year but not more than year but not more than 2 years 1 year but not more than 2 years year but not more than 2 years
2 years
60%- if the transfer is more 60%- if the transfer is more than 2 60%- if the transfer is more than 60%- if the transfer is more than 2
than 2 years but not more years but not more than 3 years 2 years but not more than 3 years but not more than 3 years
than 3 years years
40%- if the transfer is more 40%- if the transfer is more than 3 40%- if the transfer is more than 40%- if the transfer is more than 3
than 3 years but not more years but not more than 4 years 3 years but not more than 4 years but not more than 4 years
than 4 years years
20%- if the transfer is more 20%- if the transfer is more than 4 20%- if the transfer is more than 20%- if the transfer is more than 4
than 4 years but not more years but not more than 5 years 4 years but not more than 5 years but not more than 5 years
than 5 years years
11. Transfer for public The amount of all bequest, The amount of all bequest, legacies, The amount of all bequest, The amount of all bequest,
use legacies, or transfer, to or for or transfer, to or for the use of the legacies, or transfer, to or for the legacies, or transfer, to or for the
the use of the Government, or Government, or any political use of the Government, or any use of the Government, or any
any political subdivision subdivision thereof, for exclusively political subdivision thereof, for political subdivision thereof, for
thereof, for exclusively public public purposes exclusively public purposes exclusively public purposes
purposes
12. Transfer to the No provision No provision No provision No provision
surviving spouse
and children
13. Share in the The net share of the surviving The net share of the surviving spouse The net share of the surviving The net share of the surviving
conjugal spouse in the conjugal in the conjugal partnership property spouse in the conjugal spouse in the conjugal partnership
partnership property minus minus the obligations property partnership property minus the property minus the obligations
the obligations property chargeable to such property. obligations property chargeable property chargeable to such
chargeable to such property. to such property. property.
14. Amount Received No Provision No Provision No provision No provision
by Heirs Under R.A
No. 4917