Executive summary

Transfer by succession itself (i.e., the estate passing to the heirs through an extra-judicial settlement) does not, by itself, trigger Documentary Stamp Tax (DST). The transfer is covered by estate tax, not DST.
However, a waiver/renunciation by an heir in favor of a named person (e.g., the “sole heir”) is treated as a donation. That donation is subject to donor’s tax, and the donation instrument is subject to DST as a deed of donation / conveyance.
A pure renunciation (abdicative waiver) where an heir simply disclaims his share without designating a specific recipient is not a donation; it does not trigger donor’s tax nor DST on a donation. The property then passes by succession to the remaining heirs as determined by law.

Below is the full framework with practical steps, computations, and filing mechanics.

Legal bases and concepts

1) Estate transfer vs. donation

Succession is taxed under estate tax (Title III of the NIRC, as amended). It is not a sale; there is no DST on the mere transfer by succession.
Donation (an inter vivos gratuitous transfer) is taxed under donor’s tax. Separately, the deed of donation is a document subject to DST under the DST title of the NIRC (Title VII), because it is an instrument of conveyance.

2) Two kinds of renunciation (waiver) by an heir

In practice and in BIR rulings/guidebooks, renunciations are characterized as either:

Abdicative (pure) renunciation – the heir waives without favoring anyone in particular (e.g., “I renounce my share in the estate”).
- Effect: Not a donation. The waived share accretes to the co-heirs according to the rules on legal succession/representation.
- Taxes: No donor’s tax. No DST on donation (because there is no donation instrument). Estate tax still applies to the estate as a whole.
Translative renunciation – the heir waives in favor of a named person (e.g., “I waive my share in favor of Juan, my brother”).
- Effect: Donation by the waiving heir to the favored person for the waived portion.
- Taxes: Donor’s tax on the value waived and DST on the donation deed (the waiver/assignment in favor of a named person functions as the deed of donation).

Key takeaway: If the “waiver” creates or perfects a gratuitous transfer to an identified individual, it is a donation (donor’s tax + DST). If it is a disclaimer with no named recipient, it is not.

When is DST due in an extra-judicial settlement (EJS) scenario?

A) No DST in a plain EJS (no translative waiver)

Document: “Deed of Extra-Judicial Settlement” (with or without partition) where each heir simply receives his/her hereditary share, or a Self-Adjudication when there is only one legal heir.
DST: Not applicable just because the estate passes to heirs.
Other taxes/fees: Estate tax (BIR), transfer and registration fees (ROD/LGU), publication/bond under Rule 74 considerations, etc.

B) DST is due when the EJS includes a waiver in favor of a named person (e.g., to a “sole heir”)

Document: “EJS with Waiver in favor of ___” or a separate Deed of Donation/Assignment of Hereditary Rights.
DST: Applicable to the donation/assignment instrument.
Donor’s tax: Also applicable on the net value of the waived portion (separate from DST).
Estate tax: Still due on the estate (computed on the decedent’s estate before distribution), independent of the donation that happens between heirs.

If several heirs waive in favor of one person, each waiver in favor of that person is a separate donation (with its own donor’s tax and DST exposure).

What exactly is subject to DST?

1) DST on the donation instrument

What document? The Deed of Donation or the Deed of Waiver/Assignment in favor of [named person].
What property?
- Real property: The deed conveying a real property interest is a document subject to DST (on deeds of sale/conveyance of real property, which includes gratuitous conveyances).
- Movables/rights: Assignments of hereditary rights, bank deposits, receivables, or shares of stock can trigger DST on the relevant instrument (e.g., DST on transfers of shares; DST on debt instruments/assignments where applicable).
Rate/base:
- Real property conveyance: DST is imposed based on the higher of consideration or fair market value (FMV) stated in the deed. In a donation, the “consideration” is typically zero, so the FMV (zonal value/assessed value, whichever is higher for DST purposes) becomes the base.
- Shares of stock: There is a documentary stamp on the sale/transfer of shares, and a separate DST on original issue; for donations, the assignment/transfer document is stamped in accordance with the schedule for share transfers (based on par value/consideration; in gratuitous cases, practice stamps on par/stated value as applicable).
- Other instruments (e.g., assignments, powers of attorney, mortgages to secure equalization, etc.) may carry their own DST under the NIRC schedules if used to implement the distribution.

Note: DST is a tax on the document, not on the transaction’s economic gain. It’s often fixed or scheduled, and its timing is tied to the execution or acceptance of the taxable document in the Philippines.

2) No DST on a pure waiver/disclaimer (no named recipient)

If the text merely states “I renounce my share” without designating a beneficiary, there is no donation instrument to stamp. The property passes by operation of succession, not by conveyance from the waiving heir.

How do the taxes line up in practice?

Estate tax (always analyze first):
- Base: Net estate at time of death (gross estate less allowable deductions).
- Rate (TRAIN): 6%.
- Proof of payment: eCAR for Estate Tax (needed by the Registry of Deeds/Land Office/LTO/banks to transfer title or release assets).
Donor’s tax (only if there is a translative waiver in favor of a named person):
- Base: Net value of the waived share (FMV of the property/rights waived less allowable deductions, if any).
- Rate (TRAIN): 6% per donor (not progressive).
- Proof of payment: eCAR for Donor’s Tax (often separate from the Estate eCAR).
DST (only on taxable instruments actually executed):
- Deed of Donation/Assignment/Waiver in favor of [named person]: DST due per NIRC schedules.
- Timing: Generally due on or before the 5th day following the close of the month when the taxable document was made/accepted in the Philippines (filed via BIR Form 2000/2000-OT, as applicable).
- Proof of payment: Stamped document and/or BIR receipt, which ROD or other custodians may look for when the document type is one that the law treats as stampable.

Worked examples

Example 1: One property, two heirs; one waives “in favor of the estate” (no person named)

Facts: Siblings A and B are heirs. A signs: “I renounce my share in the estate.” No person is named as recipient; B eventually takes the entire property by accretion under succession rules.
Result:
- Estate tax: Due on the decedent’s net estate.
- Donor’s tax: Not due (no donation).
- DST on donation: Not due (no donation instrument).
- DST on other instruments: Only if some other separate taxable instrument (e.g., mortgage, special POA, etc.) is executed.

Example 2: One property, two heirs; A waives in favor of B (named)

Facts: A executes a “Waiver of Hereditary Rights in favor of B”.
Result:
- Estate tax: Due on estate (independent of the waiver).
- Donor’s tax: Due on the value of A’s waived share (donation from A to B).
- DST: Due on the waiver/assignment (treated as a donation/conveyance instrument). Registry typically asks for proof of both donor’s tax and DST for the donation document.

Example 3: Several heirs waive in favor of a single “sole heir”

Collective translative waivers are treated as multiple donations (each waiving heir is a donor to the favored heir).
Donor’s tax: Compute per donor, each at 6% of the value waived by that donor.
DST: Stamp the donation/waiver instruments according to the relevant schedule(s).
Estate tax: Still computed on and paid by the estate.

Real property nuances

Which value is used? For donor’s tax, the FMV at the time of donation (compare zonal vs. assessed; use the higher rule as applicable). For DST on real property conveyances, practice is to use the higher of stated consideration or FMV in the stamp base; for donations the consideration is normally zero, so the FMV becomes the base.
ROD checklist: Registries frequently require:
- Estate Tax eCAR for transfers by succession;
- If there is a donative waiver: Donor’s Tax eCAR and DST proof for the donation instrument;
- Publication proof (Rule 74), IDs, tax clearances, and standard forms.

Personal property nuances

Shares of stock: A donation/assignment of inherited shares to a named “sole heir” via translative waiver will generally trigger (i) donor’s tax, and (ii) DST on the transfer of shares (separate from DST on real property). Corporate transfer agents typically require proof of taxes before issuing new certificates.
Bank deposits/chattels/claims: Check whether the assignment instrument you’ll use is one that carries DST (e.g., certain assignments, powers of attorney, or debt instruments). If yes, stamp it accordingly.

Filing mechanics and timing (quick guide)

Estate tax: File and pay by the statutory deadline (TRAIN generally allows up to one (1) year from death, with extensions in meritorious cases). Obtain eCAR (Estate).
Donor’s tax (if any): File the donor’s tax return within 30 days from the date of donation, pay the tax, and secure eCAR (Donor’s).
DST: File BIR Form 2000/2000-OT and pay on or before the 5th day after the close of the month in which the document was made/accepted in the Philippines. Keep the stamped deed/proof; some registries want to see it.

(Exact forms and deadlines can be amended by later issuances—always verify the current BIR forms and instructions.)

Drafting tips to control tax exposure

If the factual intent is merely to step aside (not to bestow a gift), express the waiver as a pure renunciation (no beneficiary named; no language of conveyance).
Avoid mixing the estate settlement (succession) with a separate gratuitous conveyance unless you indeed intend a donation (to the “sole heir”), with its tax consequences.
If equalization is intended via sales, consider sale for value between heirs (which has its own CGT/creditable withholding/VAT/DST profiles) rather than a donation—run the numbers.
Keep instruments cleanly separated:
- EJS / Self-Adjudication (for succession);
- Deed of Donation/Assignment (only if needed for the translative waiver). This helps the BIR/ROD process each tax correctly and reduces documentary confusion.

Frequently asked questions

Q1: If there is only one legal heir from the start, is any waiver needed? No. Use an Affidavit of Self-Adjudication (subject to Rule 74 publication and other requirements). No DST arises merely from self-adjudication; you still handle estate tax and standard transfer fees.

Q2: The EJS says “with waiver” but doesn’t name a beneficiary—do we owe DST? A pure waiver without naming a recipient is not a donation, so no donor’s tax and no DST on donation. Confirm the text; if it names the “sole heir,” it becomes donative.

Q3: If we execute a separate “Deed of Donation of Hereditary Rights,” what taxes apply? Donor’s tax on the value donated, and DST on the donation deed (plus any other instrument-specific DST if used). Estate tax on the decedent’s estate remains separate.

Q4: Will the Registry of Deeds transfer title without DST if there was a translative waiver? Typically no—they will look for the donation eCAR and DST proof when the document on record is a donation/waiver in favor of a named person.

Compliance checklist

Identify heirs and their legal shares.
Decide if any heir will disclaim (pure) or donate (in favor of someone).
Prepare EJS/Self-Adjudication (succession document).
If donation is intended: prepare Deed of Donation/Assignment/Translative Waiver.
Estate tax: compute, file, pay, secure eCAR (Estate).
Donor’s tax (if any): compute, file, pay, secure eCAR (Donor’s).
DST: file Form 2000/2000-OT and pay based on the donation instrument (and any other stamped instruments).
ROD/LGU/Transfer agent: submit clearances, eCARs, DST proofs, IDs, Rule 74 publication/bond (if required), and pay registration/transfer fees.

Bottom line

No DST is due on a plain extra-judicial settlement that simply implements succession.
DST is due when the settlement includes a waiver/assignment in favor of a named individual—because that waiver operates as a donation, which carries both donor’s tax and DST on the donation document.
If your aim is merely to let one heir take everything without making a gift, ensure the waiver is abdicative (no beneficiary named) and keep the succession document separate from any gratuitous conveyance.