The estate tax is imposed under Title III, Chapter I of the National Internal Revenue Code of 1997 (NIRC), as amended, on the transfer of the net estate of a decedent to his or her heirs or beneficiaries. It is a tax on the privilege of transmitting property upon death and forms part of the government’s revenue collection system administered by the Bureau of Internal Revenue (BIR). Proper determination of the venue for filing the estate tax return and for paying the tax due is essential for the orderly administration of estates, accurate assessment and collection of taxes, and avoidance of penalties arising from late or improper filing.

The rules on venue are anchored on the principle that the BIR office with the closest nexus to the decedent or the estate should exercise jurisdiction. These rules distinguish primarily between resident and non-resident decedents and are implemented through specific revenue regulations, most notably Revenue Regulations (RR) No. 12-2018, which consolidated and updated the regulations on estate tax and donor’s tax following the enactment of Republic Act No. 10963 (Tax Reform for Acceleration and Inclusion or TRAIN Law). Earlier issuances such as RR No. 2-2003 continue to apply on matters not inconsistent with the TRAIN Law amendments.

Legal Basis

Section 90 of the NIRC, as amended, mandates the filing of an estate tax return (BIR Form No. 1801) for every decedent’s estate where the gross estate exceeds the allowable exemption or where there are claims for deductions, regardless of the amount. The return must be filed within one (1) year from the date of death. Section 91 requires payment of the estate tax at the time of filing, subject to possible extension granted by the Commissioner of Internal Revenue. Section 104 governs the taxation of non-resident decedents, limiting the taxable estate to properties situated in the Philippines.

RR No. 12-2018 provides the detailed procedural rules on registration of the estate, filing of the return, and payment of tax. The TRAIN Law itself did not alter the venue provisions but introduced a flat six percent (6%) rate on the net estate (after allowable deductions and exemption) for deaths occurring on or after 1 January 2018. Venue rules ensure that the correct Revenue District Office (RDO) processes the return, verifies supporting documents, and collects the tax.

Venue for Filing the Estate Tax Return

The venue depends on the residency status of the decedent at the time of death and, in certain cases, on the presence of an executor or administrator.

1. Resident Decedents
A resident decedent includes Filipino citizens and resident aliens who were domiciled in the Philippines at the time of death. Domicile is determined under the Civil Code: the place of habitual residence coupled with the intention to remain there permanently.

The estate tax return must be filed with the RDO having jurisdiction over the legal residence or domicile of the decedent at the time of death. The estate must first be registered with the same RDO to obtain a Taxpayer Identification Number (TIN) for the estate.

If the decedent had no fixed legal residence or the place of domicile is unknown, the return is filed with the RDO having jurisdiction over the location of the property comprising the largest portion of the gross estate.

2. Non-Resident Decedents
Non-resident decedents include non-resident Filipino citizens and non-resident aliens. Only properties situated in the Philippines are subject to estate tax.

The filing venue is determined as follows:

Where an executor or administrator has been appointed and has been issued a TIN, the return is filed with the RDO where such executor or administrator is registered.
In the absence of a local executor or administrator, the return is filed with Revenue District Office No. 39 – International Taxpayers Service (South Quezon City).

If the non-resident decedent left real or personal properties located in different RDO jurisdictions within the Philippines, the return is filed with the RDO having jurisdiction over the property with the largest aggregate value.

Venue for Payment of Estate Tax

Payment of the estate tax follows the same venue as the filing of the return. The tax due, computed at six percent (6%) of the net estate under the TRAIN Law, must be paid simultaneously with the filing of BIR Form No. 1801 unless an extension is granted. Payment may be made through any of the following:

Accredited Agent Bank (AAB) under the jurisdiction of the concerned RDO;
Revenue Collection Officer (RCO) of the same RDO if no AAB is available; or
Electronic Filing and Payment System (eFPS) for taxpayers enrolled in the system.

The proof of payment (official receipt or eFPS confirmation) forms part of the required attachments to the return. Where an extension of payment is granted under Section 91 of the NIRC (up to two years for meritorious cases), the same venue rules apply to any installment payments.

Special Cases and Exceptions

Multiple Properties or Estates Spanning Several RDO Jurisdictions
For resident decedents, the domicile rule prevails even if properties are located elsewhere. For non-resident decedents, the RDO with the largest-value property applies unless an executor or administrator dictates otherwise.

Judicially Settled Estates
Where the estate is under probate or judicial settlement, the executor or administrator appointed by the court files the return. The venue remains the RDO of the decedent’s domicile (for residents) or the applicable rule for non-residents. Court approval of the estate inventory does not alter the BIR venue requirement.

Extrajudicial Settlement
Heirs may settle the estate extrajudicially through a deed of extrajudicial settlement. Any one of the heirs or their authorized representative may file the return and pay the tax at the prescribed venue. All heirs remain jointly and severally liable for the tax due.

Decedents with No Known Domicile or Properties
The fallback venue is RDO No. 39 (South Quezon City) for both residents (if domicile unknown) and non-residents without local executor or administrator.

Estates of Large Taxpayers
Estates falling under the jurisdiction of Large Taxpayers RDOs or the Large Taxpayers Service follow the same domicile-based or property-based rules unless otherwise designated by the Commissioner.

Extensions and Transfer of Venue
The Commissioner of Internal Revenue may, for meritorious reasons, grant an extension of time to file and pay and may also authorize the transfer of venue to another RDO upon written request. Such requests are evaluated on a case-to-case basis and do not alter the default rules.

Penalties for Non-Compliance with Venue Rules
Filing with the wrong RDO may result in the return being treated as not filed, triggering the twenty-five percent (25%) surcharge for late filing, plus interest and compromise penalties. The correct RDO may require re-submission or transfer of the docket. Proper venue ensures immediate processing and issuance of the Certificate Authorizing Registration (CAR) necessary for transferring titles to real properties and other assets.

Documentary Requirements and Related Procedures

While not strictly venue rules, the following must be submitted to the RDO of proper jurisdiction:

Certified copy of death certificate;
Certified copy of the will (if any) or deed of extrajudicial settlement;
Sworn inventory of properties;
Proof of claims for deductions (funeral expenses, judicial expenses, medical expenses incurred within one year prior to death, etc., subject to TRAIN Law limits);
Certified true copies of titles or deeds for real properties;
Bank certifications for deposits; and
Any other documents required under RR No. 12-2018.

The RDO reviews these documents, computes or verifies the tax due, and issues the CAR upon full payment. For real properties, the CAR is presented to the Register of Deeds for transfer.

International Aspects and Double Taxation Relief

For non-resident decedents, Philippine estate tax applies only to Philippine-situs assets. Tax treaties with certain countries may provide relief from double taxation, but the filing and payment must still be made at the prescribed Philippine venue. Foreign tax credits are available under Section 86 of the NIRC, subject to verification by the RDO of jurisdiction.

Conclusion

The BIR’s rules on venue for filing and payment of estate tax are designed to promote efficiency, accountability, and compliance while respecting the territorial and domicile principles of Philippine tax and civil law. Adherence to these rules—from the initial registration of the estate TIN to the final issuance of the CAR—facilitates smooth estate administration and prevents unnecessary disputes with the BIR. Taxpayers, executors, administrators, and legal practitioners are encouraged to consult the latest BIR issuances, as administrative circulars may provide further clarifications or updates consistent with the NIRC and RR No. 12-2018.