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Estate Tax Regulations Overview
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Estate Tax Regulations Overview

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Questions and Answers

What is the gross value threshold for estate tax returns to require additional certification by a Certified Public Accountant?

  • Five million pesos (P5,000,000) (correct)
  • Ten million pesos (P10,000,000)
  • Three million pesos (P3,000,000)
  • One million pesos (P1,000,000)

    • Which item must be included in the statement certified by a Certified Public Accountant for estate tax purposes?

  • The decedent's marital status
  • The decedent's last will and testament
  • Gross income of the decedent for the last year
  • Itemized deductions from gross estate (correct)

    • What is the time frame for filing the estate tax return after the decedent's death?

  • Within one year (correct)
  • Within two years
  • Within three months
  • Within six months

    • Who has the authority to grant an extension for filing the estate tax return?

    <p>The Commissioner</p> Signup and view all the answers

    What is the maximum extension period that the Commissioner can grant for filing the estate tax return?

    <p>Thirty (30) days</p> Signup and view all the answers

    Where must the estate tax return be filed unless the Commissioner permits otherwise?

    <p>With authorized agent banks or Revenue District Offices</p> Signup and view all the answers

    Which document must be furnished to the Commissioner after a court order for partition?

    <p>A certified copy of the schedule of partition and the court order</p> Signup and view all the answers

    What must be included in the statement certified by a Certified Public Accountant regarding the estate tax?

    <p>The amount of tax due</p> Signup and view all the answers

    What is the tax rate applied to the transfer of the net estate of a decedent in the Philippines?

    <p>6%</p> Signup and view all the answers

    Which section outlines the rate of estate tax in the National Internal Revenue Code?

    <p>SEC. 84</p> Signup and view all the answers

    Which legislative act amends the National Internal Revenue Code concerning estate taxation?

    <p>All of the above</p> Signup and view all the answers

    The estate tax applies to the estate of which type of individuals?

    <p>Both residents and non-residents</p> Signup and view all the answers

    What is the basis for calculating the estate tax according to the content provided?

    <p>Value of the net estate</p> Signup and view all the answers

    What is the primary function of the Bureau of Internal Revenue as suggested by the content?

    <p>To levy, assess, and collect taxes</p> Signup and view all the answers

    Which of the following titles in the tax code addresses Estate and Donor's Taxes?

    <p>TITLE III</p> Signup and view all the answers

    What type of tax is levied on the net estate as defined in the content?

    <p>Estate Tax</p> Signup and view all the answers

    What happens when new obligations of the decedent appear after the estate tax payment?

    <p>Restitution of the proportional part of the tax paid may be claimed.</p> Signup and view all the answers

    What is required for the transfer of shares or rights in the Philippines?

    <p>A tax certification from the Commissioner showing taxes are paid.</p> Signup and view all the answers

    What tax is imposed on withdrawals from a deceased person's bank account?

    <p>A final withholding tax of six percent (6%) is levied.</p> Signup and view all the answers

    What statement must withdrawal slips include after a person's death?

    <p>All joint depositors are still living at the time of withdrawal.</p> Signup and view all the answers

    What type of tax is imposed under Section 98?

    <p>Donor's tax on gifts and inheritance.</p> Signup and view all the answers

    If the decedent's obligations are satisfied by the court, what is the next step for interested parties?

    <p>They can seek restitution for their tax payments.</p> Signup and view all the answers

    What is necessary before a new owner can be recorded in the corporate books after a decedent's transfer?

    <p>Certification that taxes are paid.</p> Signup and view all the answers

    Which of the following is a consequence if tax obligations are not paid before share transfer?

    <p>The transfer is deemed null and void.</p> Signup and view all the answers

    What conditions must be met for deductions to be allowed regarding a donor's tax or estate tax?

    <p>The tax must be determined and paid on behalf of the donor.</p> Signup and view all the answers

    To what extent can deductions be claimed for properties given prior to a decedent's death?

    <p>In proportion to the total estate's value at the time of death.</p> Signup and view all the answers

    How should the value of multiple items be computed for the purpose of deductions?

    <p>By using the aggregate value of all items.</p> Signup and view all the answers

    What happens to deductions if a mortgage or lien was partially paid before the decedent's death?

    <p>The deductions are proportionately reduced by the paid amount.</p> Signup and view all the answers

    What must occur when determining the net estate of a prior decedent concerning allowable deductions?

    <p>No deductions should be allowable for exchanged properties.</p> Signup and view all the answers

    What is considered as the amount of the gift when made in property?

    <p>The fair market value at the time of the gift</p> Signup and view all the answers

    Under what condition can deductions for a decedent's gross estate be claimed?

    <p>When the property is included in the decedent's gross estate at the time of death.</p> Signup and view all the answers

    Which of the following is NOT required to be included in the donor's return?

    <p>The number of gifts made in previous years</p> Signup and view all the answers

    When must the donor file the return and pay the tax?

    <p>Within thirty days after the gift is made</p> Signup and view all the answers

    What is required for a deduction to be allowable related to transfers for public use?

    <p>The transfer must be explicitly stated in the estate tax papers.</p> Signup and view all the answers

    Which of the following is NOT a requirement for determining the allowable deductions?

    <p>The donor must have paid all debts before the deduction.</p> Signup and view all the answers

    What is the consequence if the donor does not file the return within the specified time?

    <p>The donor may face penalties or legal action</p> Signup and view all the answers

    Who can file the donor's return and payment of tax?

    <p>Any authorized agent</p> Signup and view all the answers

    What type of property requires special provisions for valuation?

    <p>Real property</p> Signup and view all the answers

    What further information may be required in the donor's return?

    <p>Additional documents as per regulations</p> Signup and view all the answers

    What is the significance of Section 88(B) in relation to gifting real property?

    <p>It specifies the valuation methods for real property gifts</p> Signup and view all the answers

    Study Notes

    Estate Tax Regulations

    • Estate tax returns are required for estates with a gross value exceeding P5,000,000.
    • Returns must include:
      • Itemized assets of the decedent, outlining their gross value at the time of death.
      • Itemized deductions from gross estate as permitted under Section 86.
      • Amount of tax due, whether paid or outstanding.

    Filing Requirements

    • Estate tax returns must be filed within one year of the decedent's death.
    • Certified copies of the schedule of partition and court approval must be submitted within 30 days after the court's order.

    Extensions and Filing Methods

    • The Commissioner may grant extensions up to 30 days for filing under special circumstances.
    • Returns should typically be filed electronically or manually with authorized banks, Revenue District Offices, or tax software providers.

    Tax Rates and Gross Estate

    • A six percent (6%) tax is levied on the net estate as outlined in Sections 85 and 86.
    • Deductions are only valid if the estate tax imposed is finally determined and paid.

    Transfers of Assets

    • No transfers of shares, bonds, or rights can occur without a certification proving tax payment.
    • Banks may allow withdrawals from accounts of deceased individuals, subject to a final 6% withholding tax.

    Donor's Tax Regulations

    • Gifts made in property are taxed based on fair market value at the time of the gift.
    • Individuals making gifts must file a return under oath detailing each gift and any deductions claimed.

    Timeframe for Donor's Tax

    • The donor's tax return is due within 30 days of making the gift, with payment due at the time of filing.
    • Returns can be filed electronically or manually at authorized locations similar to estate tax returns.

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    Related Documents

    ESTATE & DONORS TAX.pdf

    Description

    This quiz covers the essentials of estate tax regulations, including the filing requirements and deadlines for estate tax returns. It highlights the necessary documentation and tax rates applicable to estates exceeding specific gross values.

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