Quick answer

For a person who died on or after January 1, 2018, Philippine estate tax is generally 6% of the net taxable estate. The executor, administrator, or heirs must ordinarily:

Register the estate and obtain its own Taxpayer Identification Number (TIN).
Identify and value the decedent’s assets as of the date of death.
Establish which assets were exclusive, conjugal, or community property.
Subtract the deductions allowed by law.
File BIR Form No. 1801 within one year from death.
Pay the tax when the return is filed, unless the BIR has approved an installment arrangement, payment extension, or partial disposition of estate property.
Complete the BIR’s One-Time Transaction (ONETT) process and obtain the required electronic Certificate Authorizing Registration (eCAR) before transferring registrable assets.

A return can be required even when no tax is payable—particularly when the estate includes land, a condominium, a vehicle, shares of stock, or another asset that cannot be transferred without an eCAR. The governing rules appear principally in the TRAIN Law and BIR Revenue Regulations No. 12-2018.

First, identify the law that applies

Estate tax accrues at the moment of death. Consequently, the date of death determines the applicable rates, deductions, valuation rules, and filing requirements.

The 6% rate and the deductions discussed below generally apply only when the decedent died on or after January 1, 2018. If the person died before that date, do not apply today’s ₱5 million standard deduction or ₱10 million family-home ceiling automatically. The estate must be computed under the law in force when the person died.

The extended estate-tax amnesty is no longer open to new applications. Although Republic Act No. 11956 stated an end date of June 14, 2025, the final filing date was June 16, 2025 because the statutory date fell on a non-working day. An estate that did not apply by then must generally use the ordinary law applicable at death, including applicable additions for late filing or payment. Existing, timely amnesty applicants may still submit proof of settlement for eCAR processing, but an approved installment schedule must be followed strictly. See Republic Act No. 11956 and BIR RMC No. 33-2026.

Who must file the return?

The executor or court-appointed administrator normally files and pays for the estate. If neither has been appointed, one or more legal heirs may act.

BIR Form No. 1801 is required when:

The transfer is subject to estate tax;
The gross estate exceeds ₱5 million for a death on or after January 1, 2018; or
Regardless of value, the estate includes registered or registrable property for which the BIR requires an eCAR before ownership can be transferred.

The third rule commonly applies to real property, motor vehicles, shares of stock, and similar assets. Thus, “no estate tax due” does not necessarily mean “no return required.”

When the gross estate exceeds ₱5 million, the return must be supported by a CPA-certified statement showing the itemized assets, allowable deductions, and tax due or outstanding.

Step 1: Choose a responsible filer and settlement route

The heirs should identify one person who will coordinate the documents, BIR submissions, and payments. If that person is not an heir, executor, or administrator, prepare an appropriate notarized Special Power of Attorney.

The family must also determine whether the estate will be settled:

Through an affidavit of self-adjudication, when legally available to a sole heir;
Through an extrajudicial settlement, when the legal conditions for that process are satisfied; or
Through a judicial proceeding, such as when probate is required, the heirs or creditors disagree, or an extrajudicial settlement is unavailable.

Tax filing and settlement are related but distinct. The estate should not miss the one-year tax deadline merely because the deed of settlement or court proceeding is unfinished. The BIR’s current ONETT checklist allows, depending on the stage of the case, a settlement document, court order, or sworn declaration of all estate properties. A final settlement instrument will nevertheless be needed before registrable assets can be transferred.

Step 2: Register the estate and obtain its TIN

The estate is a separate taxpayer and needs a TIN distinct from the decedent’s and the heirs’ TINs.

For a resident decedent, registration is ordinarily handled by the RDO having jurisdiction over the decedent’s domicile at death. Under RR No. 12-2018, a nonresident decedent with an executor or administrator in the Philippines is generally registered through the RDO where that representative is registered or, if unregistered, where the representative legally resides. If there is no Philippine executor or administrator, the regulation directs registration and filing through RDO No. 39–South Quezon City.

The BIR’s registration checklist revised in July 2025 lists BIR Form No. 1901, together with the death certificate, for an estate with property subject to estate tax or under judicial settlement. Check the current BIR registration checklist and confirm the accepted submission method with the proper RDO before filing.

Secure or verify the TINs of all heirs as well. Mismatched names, dates of birth, and TIN records frequently delay ONETT processing.

Step 3: Prepare a complete inventory

List every asset in which the decedent had an ownership or taxable interest at death, including assets that may not appear in the will or settlement document.

Common items include:

Land, houses, condominium units, and improvements;
Bank deposits and time deposits;
Listed and unlisted shares, bonds, and investment accounts;
Vehicles, valuable personal property, and business assets;
Partnership, corporate, or cooperative interests;
Receivables and claims against other persons;
Life-insurance proceeds that are includible under the Tax Code;
Property transferred during life but still includible because of retained powers, revocability, inadequate consideration, or another statutory rule; and
Foreign assets, where applicable.

For a Philippine citizen or a resident alien, the gross estate generally covers property wherever situated. For a nonresident alien, it generally covers property situated in the Philippines, subject to special rules—including reciprocity—for intangible property.

Do not assume that an asset is excluded merely because it is jointly titled or names a beneficiary. Ownership, the source of funds, the applicable property regime, and the exact account or policy documents matter.

Step 4: Separate the decedent’s property from the surviving spouse’s property

For a married decedent, determine the applicable marital-property regime and classify each asset and liability correctly.

Do not include the surviving spouse’s exclusive property as though it belonged to the decedent. For conjugal or community property, follow the return’s allocation and deduction schedules. The surviving spouse’s net share in conjugal or community property is deductible, after accounting for obligations properly chargeable against that property.

This is not always a simple 50% deduction from every asset. The marriage date, marriage settlement, acquisition date, source of funds, title, and nature of each obligation can change the result.

Step 5: Value each asset as of the date of death

Estate property is generally valued at fair market value at death—not at its purchase price, present value, or the amount the heirs later receive.

Real property

Use the higher of:

The BIR fair market or zonal value applicable at death; or
The fair market value shown in the provincial or city assessor’s schedule of values.

Obtain titles, tax declarations for land and improvements, and—if applicable—a certificate of no improvement. Keep evidence of the zonal value and assessor’s value used.

Shares of stock

Under RR No. 12-2018:

Unlisted common shares are generally valued using book value under the regulation’s rules;
Unlisted preferred shares are generally valued at par value; and
Listed shares are valued using the prescribed stock-exchange quotation method at death or, if unavailable, the nearest applicable date.

Obtain the stock certificates, relevant audited financial statements, and official or published market information.

Other assets

Obtain date-of-death certifications or reliable valuation evidence for bank accounts, investments, vehicles, receivables, business interests, club shares, jewelry, and other material property. Avoid unsupported estimates.

Step 6: Compute the deductions

For a citizen or resident decedent who died on or after January 1, 2018, the principal deductions may include the following.

Standard deduction

The standard deduction is ₱5 million. Receipts for actual expenses are not required to claim it.

A nonresident alien is generally allowed a ₱500,000 standard deduction instead, with different rules for other deductions.

Claims, mortgages, taxes, and losses

Potential deductions include properly substantiated:

Claims against the estate;
Claims of the decedent against insolvent persons, when the underlying interest was included in the gross estate;
Unpaid mortgages;
Certain unpaid taxes; and
Qualifying casualty losses incurred during settlement.

A loan claim should not be deducted based only on an heir’s statement. Preserve the notarized debt instrument, creditor records, payment history, security documents, and proof of how loan proceeds were used. For a loan contracted within three years before death, the BIR requires an accounting of the proceeds.

Funeral and medical expenses are not separate itemized deductions under the post-TRAIN estate-tax rules. Families sometimes mistakenly claim them in addition to the standard deduction.

Family-home deduction

The decedent’s qualifying family home may be deducted up to ₱10 million, limited to the value of the decedent’s interest and subject to the statutory requirements.

If the family home was conjugal or community property, do not deduct the surviving spouse’s portion as though it were part of the decedent’s estate. The BIR generally requires a barangay certification supporting the family-home claim.

The ₱5 million standard deduction and ₱10 million family-home ceiling do not create an automatic ₱15 million exemption for every estate. The family-home deduction applies only to a qualifying property and only to the decedent’s properly determined interest.

Other possible deductions or credits

Depending on the facts, the estate may also claim:

Property previously taxed, subject to the statutory period and percentage limitations;
Transfers for public use;
Qualifying amounts received by heirs under Republic Act No. 4917;
The surviving spouse’s net share in conjugal or community property; and
A limited credit for estate tax paid to a foreign country.

These items require specific proof and should not be claimed merely because their labels appear on the return.

Step 7: Calculate the estate tax

For a death on or after January 1, 2018:

Estate tax due = 6% × net taxable estate

In simplified form:

Gross estate − allowable deductions = net taxable estate

Then apply any allowable foreign estate-tax credit, subject to the statutory limitations.

This calculation can become more complicated when there are foreign properties, prior transfers, several marriages, disputed ownership, insufficiently documented debts, or multiple generations of unsettled estates.

Step 8: Assemble the filing and ONETT documents

The precise checklist depends on the property and deductions involved. Common requirements include:

Certified true copy of the death certificate;
Estate TIN and verified TINs of the decedent and heirs;
Marriage certificate and relevant marriage settlement;
Affidavit of self-adjudication, deed of extrajudicial settlement, court order, or sworn declaration of estate properties;
Certified court-approved schedule of partition, for judicial settlements;
CPA-certified statement when the gross estate exceeds ₱5 million;
Titles and date-of-death tax declarations;
Certificate of no improvement, when applicable;
Barangay certification for the family home;
Bank, investment, and indebtedness certifications;
Vehicle certificates of registration and valuation evidence;
Stock certificates, audited financial statements, and market quotations;
Proof supporting debts, prior-taxed property, public-use transfers, and tax credits;
Government-issued IDs;
SPA or other proof of authority for a representative; and
Apostille or appropriate authentication for documents executed abroad.

Use the BIR Citizen’s Charter as a starting checklist, but request a transaction-specific checklist from the proper RDO. The BIR may require additional documents when the submitted records do not establish ownership, valuation, or a claimed deduction.

Step 9: File BIR Form No. 1801 on time

File the sworn estate-tax return within one year from the date of death.

The BIR currently includes Form No. 1801 in the eBIRForms system. Manual filing remains possible under applicable BIR rules. The Ease of Paying Taxes Act generally permits filing and payment through authorized electronic channels, authorized agent banks, RDO revenue collection officers, or authorized tax software providers. Use a channel that accepts Form No. 1801 and the estate’s TIN.

The return-and-payment venue should not be confused with ONETT and eCAR routing. Estate registration and ONETT evaluation remain handled by the proper RDO. The current Citizen’s Charter routes the estate-tax computation process principally through the decedent’s RDO and may route a real-property eCAR according to the property’s location. Obtain written routing or claim-slip instructions when several RDOs are involved.

Save:

The complete signed return and schedules;
eBIRForms acknowledgment email or electronic confirmation;
Validated bank deposit slip or revenue official receipt;
Electronic payment confirmation and reference number; and
Copies of every document submitted.

Step 10: Pay the tax—or obtain written approval for another arrangement

The estate tax is normally due when the return is filed. Do not delay filing simply because the estate lacks cash.

Cash installment

When estate cash is insufficient, the BIR may approve payment by installment, generally within two years from the statutory payment date. The Form No. 1801 guidelines describe an approved installment arrangement within that period as being without civil penalty and interest.

Approval is not automatic. Apply through the proper RDO and obtain the approved terms before relying on an installment arrangement.

Extension because of undue hardship

If immediate payment would impose undue hardship, the Commissioner or authorized representative may extend payment for up to:

Five years when the estate is settled judicially; or
Two years when it is settled extrajudicially.

Interest applies during an approved payment extension, although surcharge ordinarily does not apply to an amount paid within the approved period. The BIR may require a bond of up to twice the tax. No extension is available when the request results from negligence, intentional disregard of the rules, or fraud.

Partial disposition of estate property

The BIR may allow part of the estate to be sold and the proceeds applied to the tax. Obtain written approval before transferring or selling the property; do not assume a sale can proceed without the required tax clearance or eCAR.

A separate extension to file the return may be granted in a meritorious case, but it cannot exceed 30 days. Apply before the ordinary deadline and do not treat a pending request as approval.

Step 11: Obtain the ONETT computation and eCAR

Submit the complete property, valuation, deduction, and settlement records to the proper ONETT office. The BIR evaluates the return and prepares or approves the ONETT Computation Sheet.

After the correct tax and applicable certification charges have been paid, apply for the eCAR. The current Citizen’s Charter lists:

A ₱100 certification fee; and
A ₱30 loose documentary stamp for each eCAR.

The BIR’s published service standard treats estate computations as highly technical: the target is generally 20 working days for the ONETT Computation Sheet and seven working days for eCAR processing after receipt of complete requirements. These are processing standards, not guaranteed completion dates and not extensions of the tax deadline. See BIR RMC No. 28-2025.

Review every eCAR immediately. Check the decedent’s name and TIN, property description, title or certificate number, heirs, and tax-payment details before presenting it to another agency.

Step 12: Complete the asset transfers

Payment of estate tax does not by itself transfer ownership.

Depending on the property, the heirs may still need to submit the settlement document and eCAR to the Registry of Deeds, corporation or corporate secretary, bank, Land Transportation Office, cooperative, or another record-keeping institution. Local transfer tax, registration fees, publication, annotation, and other settlement requirements may also apply.

Do not distribute an inheritance prematurely. Under the tax rules, the executor or administrator must pay the estate tax before delivering distributive shares. An heir may also have subsidiary liability, limited under the rules to the value of the inheritance received.

Using a decedent’s bank deposit for liquidity

A bank that knows of the depositor’s death may permit an authorized heir, executor, or administrator to withdraw from the decedent’s deposit within one year from death, subject to a 6% final withholding tax. The estate TIN and BIR registration proof are required.

An amount withdrawn under this mechanism and subjected to the final withholding tax is excluded from the gross estate for estate-tax computation, but the tax withheld is not refundable or creditable against the tax on the remaining estate. Because this can produce a different result from including the deposit in the ordinary estate computation, compare the consequences before withdrawing.

If the deposit has already been included in a filed estate-tax return and the corresponding tax paid, the bank may instead require the eCAR; withdrawal under that route is not subjected again to the 6% final withholding tax.

If the filing is already late

File and resolve the liability rather than waiting for another amnesty.

The general additions may include a 25% surcharge, statutory interest, and an applicable compromise penalty. Willful neglect or a fraudulent return may trigger a 50% surcharge and more serious exposure. Qualified micro or small taxpayers may receive reduced civil-penalty and interest rates under the Ease of Paying Taxes Act and BIR RR No. 6-2024, but an estate should not assume that it qualifies without a BIR determination.

Ask the proper RDO for a written computation. Preserve proof of earlier filing attempts, payments, approved extensions, installment arrangements, and communications with the BIR.

Evidence worth preserving

Keep both secure digital copies and organized originals of:

Civil-registry records and government IDs;
TIN verification and estate-registration records;
Titles, tax declarations, deeds, and acquisition documents;
Marriage and property-regime documents;
Date-of-death bank and investment certifications;
Insurance policies and beneficiary designations;
Stock records and audited financial statements;
Loan agreements, promissory notes, mortgages, receipts, and proof of loan use;
Family-home residency and barangay records;
Valuation reports and copies of the applicable zonal values;
Foreign tax returns, assessments, and official payment receipts;
Settlement instruments, court pleadings, orders, and proof of publication;
Filed returns, acknowledgment emails, payment confirmations, and receipts; and
ONETT sheets, claim slips, approved requests, and eCARs.

Do not surrender the only original without obtaining an acknowledged copy or official receipt.

Common mistakes to avoid

Using the law in force today instead of the law at the date of death;
Assuming every estate receives an automatic ₱15 million exemption;
Omitting registrable property because its value seems small;
Reporting the surviving spouse’s exclusive property as part of the estate;
Treating all jointly titled property as owned equally without checking the documents;
Using current market values instead of date-of-death values;
Deducting undocumented family loans;
Claiming funeral and medical expenses as separate post-TRAIN deductions;
Omitting foreign assets of a Philippine citizen or resident;
Filing under the decedent’s personal TIN instead of the estate TIN;
Waiting for the estate settlement to finish before addressing the one-year deadline;
Paying through an electronic channel without saving the reference number;
Assuming an installment or extension is effective without written BIR approval;
Distributing, selling, or transferring assets before obtaining the necessary eCAR; and
Leaving one property out of the return or settlement deed and discovering it during registration.

When professional help is urgent

Consult a Philippine tax lawyer, estate lawyer, or CPA promptly when:

The one-year deadline is near or has passed;
The estate applied for amnesty but has unpaid installments or lacks settlement documents;
There is a will, a disinherited heir, a minor heir, an unknown heir, or an heir abroad;
Ownership or the marital-property regime is disputed;
The estate includes foreign property, trusts, corporations, or valuable unlisted shares;
Assets were transferred shortly before death;
Several generations of estates remain unsettled;
The estate lacks cash to pay the tax;
A bank withdrawal must be considered before the one-year period expires;
A creditor or heir contests the inventory or deductions;
Property was omitted from an earlier return;
The BIR has issued an assessment, demand, subpoena, or fraud-related notice; or
Someone proposes backdating, concealing an asset, using another person’s TIN, or filing a knowingly inaccurate return.

FAQ

Is estate tax charged on each heir?

No. Estate tax is imposed on the transfer of the decedent’s net taxable estate. The estate normally pays it before the remaining property is distributed. An heir’s separate taxes may arise from later transactions or income, but inheritance itself is not computed as a separate estate tax for each heir.

Must we file if the computation shows zero tax?

Possibly. Filing is still required when the gross estate exceeds the statutory threshold or the estate contains property requiring an eCAR for transfer.

Can we file before signing an extrajudicial settlement?

The tax deadline should not be ignored while settlement is pending. The BIR may accept a sworn declaration of all estate properties during the ONETT computation stage, but the appropriate settlement instrument or court order will be required before the assets can be transferred and the eCAR process completed.

Is the estate-tax amnesty still available?

No new application may be filed as of the source-check date. The final filing date was June 16, 2025. Different rules apply to estates that filed timely and are completing approved installments or submitting proof of settlement.

Can one heir process everything?

An heir may act when properly authorized and when no executor or administrator has been appointed. The BIR and other agencies may require a sworn designation, SPA, settlement instrument, or court authority.

Does the family home always qualify for a ₱10 million deduction?

No. ₱10 million is a ceiling, not an automatic deduction. The property must qualify as the decedent’s family home, the value of the decedent’s interest must be established, and the required proof must be submitted.

How long does the eCAR process take?

The current BIR service targets are generally 20 working days for the estate’s ONETT computation and seven working days for eCAR issuance after complete requirements are received. Missing documents, valuation issues, several properties, ocular inspection, system availability, or routing between RDOs can extend the actual timeline.

Does paying estate tax transfer the title automatically?

No. The heirs must still complete the settlement and registration requirements of the Registry of Deeds or the institution holding the asset.

Official references

This article provides general legal and tax information, not advice for a particular estate. Ownership, citizenship, residence, marital-property rules, documents, and the date of death can materially change the result. Official sources and procedures were checked through July 20, 2026.