Philippine Estate Tax Payment from Overseas
A comprehensive legal-practice guide (updated June 27 2025)
Disclaimer – This article is for general information only and does not constitute legal advice. Estate-tax rules are statute-driven and highly fact-specific; always consult a Philippine tax lawyer or accredited tax agent for your particular case.
1. Statutory Framework & Key Issuances
| Authority | Core Provisions Relevant to Overseas Payment |
|---|---|
| National Internal Revenue Code (NIRC), as amended | §§84-97 (estate-tax liability, deductions, filing, payment), §104 (property situs rules), §51(B) (extensions). |
| RA 10963 (“TRAIN” law) (1 Jan 2018) | Replaced graduated rates with a flat 6 % on the net estate, raised standard deductions, simplified filing. |
| RA 11213 & RA 11569 & RA 11956 (Estate-Tax Amnesty, now extended until 14 June 2025) | Optional 6 % amnesty on the net undeclared estate of decedents who died on or before 31 Dec 2021. |
| Revenue Regulations (RRs) | RR 12-2018, RR 6-2019, RR 17-2021, RR 3-2023 (electronic payment), RR 17-2023 (amnesty extension guidelines). |
| Revenue Memorandum Circulars (RMCs) | RMC 24-2019, 28-2023, 74-2023 etc. clarify eCAR issuance, eFPS enrollment abroad, and apostille of foreign documents. |
2. When & Why Estate Tax Arises
| Decedent’s Status | Property Covered | Philippine Estate-Tax Exposure |
|---|---|---|
| Resident citizen | Worldwide assets | Yes (tax credit allowed for foreign estate/inheritance taxes). |
| Non-resident citizen / resident alien | Worldwide except intangible property abroad | Yes. |
| Non-resident alien | Philippine-situs assets only (real property + tangible personalty in PH; PH-issued intangible assets but treaty overrides possible) | Yes. |
Trigger: Death itself. Return (BIR Form 1801) and payment are due within one (1) year from date of death, extendible for “undue hardship” (maximum 5-year deferment of payment; 30-day extension for filing) upon a well-documented request (§51-B, NIRC).
Late payment: 25 % surcharge (50 % if willful neglect) plus 20 % p.a. interest until paid.
3. Computing the Net Estate (post-TRAIN)
Gross estate – real property (FMV/higher of BIR zonal values), personal property, bank deposits (subject to bank-deposit secrecy waiver), shares, digital/crypto assets, insurance proceeds without designated irrevocable beneficiary, etc.
Allowable deductions
- Standard deduction ₱ 5 million (no substantiation).
- Family home – up to ₱ 10 million.
- Actual funeral expenses (max 5 % of gross estate or ₱200 k).
- Judicial/extrajudicial expenses, claims against the estate, unpaid mortgages, casualty/medical expenses within 1 year prior to death, transfers for public use, vanishing deduction (for property acquired within 5 years and previously subject to donor/estate tax).
- Foreign estate-tax credit – but capped by Philippine-tax proportion.
Net estate × 6 % = basic estate-tax due (or 6 % of net undeclared estate under amnesty).
4. Filing & Getting a Philippine TIN from Overseas
| Step | Overseas-Friendly Method |
|---|---|
| a. Obtain an “Estate TIN” | File BIR Form 1904 via an authorized representative in the Philippines or through a Philippine Consulate-notarised SPA (apostilled where applicable). BIR now accepts email-based TIN-application packets in Revenue District Offices (RDOs) with “eTIN for Estates” desks (RMC 41-2022). |
| b. Prepare the Return | Use eBIRForms (offline package v.7.9) or BIR “Electronic Estate-Tax Return” module. Supporting documents (death certificate, will, proof of valuation, liabilities) must be scanned in PDF <= data-preserve-html-node="true" 4 MB lots. |
| c. Upload & receive e-Acknowledgment | Upload via eBIRForms or dispatch physically (courier/consular pouch) if electronic filing is impossible. |
Tip: Even if heirs reside abroad, they may appoint a Philippine-based executor/administrator solely for tax compliance to avoid delays caused by international document routing.
5. Paying the Estate Tax from Outside the Philippines
| Mode | Mechanics & Practical Notes |
|---|---|
| A. Electronic channels (most convenient) | • LandBank Link.BIZPortal, DBP Pay-Link, UnionBank Online / UBS-Ph BIR Tax Payment and GCash, Maya, ShopeePay wallets integrated via BIR Payment Gateway. • Accept payments using foreign-issued Visa/Mastercard (auto-FX conversion). Cardholder name need not match decedent. • Proof of payment: system-generated Payment Confirmation Number (PCN) + eOR. |
| B. eFPS (e-Filing & Payment System) | • Available to estate accounts once TIN is tagged “registered”. • Heirs overseas can use virtual private networks (VPN) if their IPs are blocked by gov’t firewalls, as permitted under RMC 28-2023. |
| C. Remittance to an Authorized Agent Bank (AAB) | • BDO, BPI, Metrobank, PNB accept Swift remittances with the following narrative: “Payment of Estate Tax – [Estate TIN] [Decedent Name DDMMYY]”. • Funds are swept to BIR’s Treasury Single Account (TSA). The AAB e-transmits a BIR-DRN (Document Reference No.). • Convert remit amount to PHP using AAB’s “TT Selling” rate on credit date. |
| D. Philippine Consulate Collection (rare) | A few Consulates (e.g., Riyadh, Dubai) pilot “BIR Over-The-Counter Collection” windows. Pay in USD/SAR/AED; consulate remits to DOF at BSP-reference FX rate. |
| E. Third-party fintech / remittance firms | Wise, Remitly, OFBank mobile app—allowed if final credit is to an AAB/BIR gateway and payment reference (e.g., form serial) is intact. |
Key rule: *The tax is deemed paid only when credited to the BIR’s account. Keep digital receipts; attach to eCAR request.
6. Exchange-Rate & Currency Issues
- Estate tax must be booked in Philippine peso on the date of payment (RR 5-2004).
- For estate-tax computations in a foreign currency (e.g., assets abroad), convert values using BSP reference rate on date of death; for payment convert on date of remittance.
- No double FX margin if using cards—issuer handles conversion once.
7. Documentary Compliance from Abroad
- Foreign death certificates, wills, probate orders → Apostille (for Hague parties) or consular authentication + official English translation.
- SPA & affidavits → Notarise locally, apostille, courier to PH; originals are required for eCAR release.
- Extrajudicial Settlement of Estate (EJS) abroad → Publish in a newspaper of general circulation in PH for 3 consecutive weeks (Rule 74, ROC).
8. eCAR & Title Transfer While Overseas
| Asset | Who Collects eCAR | Remote Strategy |
|---|---|---|
| Real property | Register of Deeds requires eCAR + Tax Clearance; representative may lodge documents. | Courier original owner’s duplicate titles plus eCAR to PH. |
| Bank deposits | Bank’s estate-tax unit releases funds upon eCAR. | E-mail scanned eCAR; bank later requires original via courier. |
| Shares (certificated) | Corporate Secretary cancels old certificates & issues to heirs. | Scan/overnight the eCAR & Board Res. from wherever the Secretary is. |
9. Estate-Tax Amnesty (until 14 June 2025) for Heirs Overseas
- Covers estates of decedents who died on or before 31 Dec 2021 and remain unpaid/undeclared.
- Flat 6 % of net undeclared estate or ₱5,000 if exclusively family-home ≤ ₱10 M.
- No penalties, surcharge, or interest; withdrawal of criminal cases.
- eAmnesty Return (BIR Form 2118-EA) may be filed entirely online; payment via channels above.
- Final eCAR issued within 15 working days (vs. regular 30-day SLA).
10. Penalties for Non-Compliance
| Violation | Consequence |
|---|---|
| Late filing/payment | 25 %/50 % surcharge + 20 % interest p.a. |
| Willful attempt to evade | Up to ₱10 million fine + imprisonment 6-10 years (§254, NIRC). |
| False declarations | Compromise penalties or criminal prosecution; may also invalidate extrajudicial settlement. |
| Failure to secure eCAR | Register of Deeds/stock transfer agent will refuse transfer; property remains encumbered. |
11. Practical Checklist for an Overseas Executor/Heir
- Secure original death certificate → apostille / consular.
- Apply for Estate TIN & eBIRForms account.
- Obtain asset valuations (BIR zonal, bank-certified balances, broker valuation).
- Gather deductible-expense proofs (medical bills, debts, funeral).
- Draft Estate-Tax Return; decide regular vs. amnesty route.
- E-file BIR Form 1801 or 2118-EA.
- Pay through e-channel/AAB; print digital receipt.
- Submit hard-copy docket (originals) via representative.
- Claim eCAR; mail to Register of Deeds / corporate secretary / banks.
- Distribute estate; close or migrate PH tax filings.
12. Special Cross-Border Considerations & FAQs
| Question | Quick Answer |
|---|---|
| Can I offset U.S. federal/state estate tax paid? | Yes, via Foreign Estate-Tax Credit (but capped) or claim unilateral foreign-tax credit under Philippine tax treaties (e.g., US-PH Estate-Tax Treaty Art. 3). |
| Is cryptocurrency situated in PH? | BIR treats situs according to “residence of the issuer/platform”; clarify early and maintain private-key backups for valuation. |
| Must I open a PH bank account? | No. Payment can be via foreign card; estate proceeds may be wired abroad after eCAR evidence. |
| Do I need court probate if there is a notarised will abroad? | Yes. Wills of non-resident decedents must undergo ancillary probate in Philippine courts before properties can be transferred (Art. 815, Civil Code). |
| What if heirs disagree and are in different countries? | File judicial settlement; court may empower counsel to pay estate tax on behalf of the estate. |
| Can we pay in instalments? | BIR may grant installment up to 5 years (RR 12-2018) upon posting a surety bond equal to tax due + 25 %. |
13. Sample Calculation (Resident Decedent, Assets & Heirs Abroad)
| Item | Value (PHP) |
|---|---|
| House & lot (Philippines) | 15,000,000 |
| Condo (Philippines) | 9,000,000 |
| Mutual funds (U.S.) | 5,000,000 |
| PH bank deposits | 3,000,000 |
| Gross Estate | 32,000,000 |
| Less: Standard deduction | (5,000,000) |
| Less: Family home (house & lot) capped | (10,000,000) |
| Less: Funeral (actual 300 k, limited to 5 %) | (300,000) |
| Net Estate | 16,700,000 |
| Estate Tax @ 6 % | 1,002,000 |
Payment by executor in Canada via Visa card on LandBank Link.BIZ portal → PHP debited; PCN & eOR generated instantly; eCAR released 22 working days later to PH counsel.
Key Take-Aways
- Estate tax is territorial but filing/payment can be performed 100 % online if you plan early.
- The one-year clock does not pause just because heirs live overseas.
- Choose between the regular 6 % estate tax and the amnesty 6 % (if eligible)—they are mutually exclusive.
- Digital payment channels remove the need for a Philippine bank account, but you still need a Philippine-registered representative for original-document submission and eCAR pick-up.
- Keep every e-receipt; without an eCAR, property transfers, bank withdrawals, and even share redemptions are blocked.
For tailored advice, coordinate with a Philippine-licensed tax practitioner experienced in cross-border estates, and verify the latest BIR circulars before filing.