EXTRA JUDICIAL SETTLEMENT OF ESTATE under TRAIN law, TRAIN (TAX REFORM FOR ACCELERATION and INCLUSION):
Greetings!
Another experience I would share with everyone was filing an estate tax for the estate of one who passed away under the TRAIN law, year 2018 onward.
These past months, I also worked on filing an estate tax for the estate of one who passed away under the TRAIN law, year 2018 onward. The death occurred year 2019, processing here would be under TRAIN LAW. This was no longer covered by the tax amnesty which is currently ongoing up to June 2023.
REQUIREMENTS I SUBMITTED TO BIR:
1. PSA death certificate
2. TIN of decedent and heirs
3. Extra Judicial Settlement of Estate duly notarized
4. Certification of the Barangay Captain for the Claimed Family Home
5. Certified true copy of title
6. Certified true copy of tax declaration at the time of death of decedent
7. Certificate of no improvement
8. Birth certificate of children
9. Marriage contract of surviving spouse
10. Family tree
BIR FORMS USED:
1904 for TIN registration decedent and heirs
1801 for Estate tax return (starting 2018)
COMPUTATION OF ESTATE TAX BY BIR:
Per BIR WEBSITE:
"Tax Rates
(The rate applicable shall be based on the law prevailing at the time of decedent’s death)
- Effective January 1, 2018 to present [Republic Act (RA) No. 10963]
There shall be an imposed rate of six percent (6%) based on the value of such NET ESTATE determined as of the time of death of decedent composed of all properties, real or personal, tangible or intangible less allowable deductions."
Under the TRAIN law, there is a Standard Deduction of FIVE MILLION PESOS from the gross estate. If the estate has a gross value of less than 5million, then it is exempted from paying estate tax, provided that you file the Estate Tax Return within a year from decedent's death. In this case, since the estate tax return was filed 2 years after death, a P5,000.00 penalty was charged. This was exempted from estate tax but was charged penalty due to late filing.
THE PROCESS:
I went to BIR, to the branch which has jurisdiction over the place where the decedent lived at the time of death. I brought with me all the ten (10) requirements listed above.
First, inside BIR, I lined up to get the TIN of decedent and heirs;
Second, I presented all the documents I have, to the ONETT team for estate tax computation;
Third, once I had the computation, I rushed to the nearby bank to pay the estate tax/penalty;
Fourth, I went back to BIR, presented the documents listed above plus the BIR forms 1904 and TIN print outs (from the staff handling TIN for ONETT); ONETT computation and list of requirements forms; form 1801 (Estate Tax Return) with received stamped from the bank and the bank deposit slip showing my payment; I was advised to pay certification fee and documentary stamp;
Fifth, I lined up again to pay for the certification fee and documentary stamp worth P150.00;
Sixth, I went back to ONETT and submitted all documents plus the receipt for the certification fee and documentary stamp.
Note: I photocopied all the documents/forms I submitted for my files.
SO THERE...EVERYTHING SUBMITTED TO BIR ONETT TEAM for processing!!
After more than two (2) months, the eCAR was released and ready for registration to the Register of Deeds.
Note: prior to eCAR released, the releasing staff told me to photo copy the eCAR and all attachments for BIR's copy of the transaction.
FINALLY, THE eCAR WAS RELEASED TO US, READY FOR REGISTER OF DEEDS.....the next step.....
THANK YOU...till next time at the Register of Deeds.
Keep safe everyone!!❤️
Comments
Post a Comment