Requirements for Filing Estate Tax Returns in the Philippines
(Comprehensive Legal Guide as of 30 July 2025)
Quick note. This material is for general information only and is not a substitute for formal advice from a Philippine lawyer, tax adviser, or the Bureau of Internal Revenue (BIR). Laws and BIR rules change; always confirm the latest issuances before acting.
1. Governing Law & Key Issuances
| Source | Core Provisions Relevant to Estate Tax |
|---|---|
| National Internal Revenue Code (NIRC) of 1997, as amended | §§ 84‑97 define the tax, deductions, due date, rates, extensions, installment payment and penalties. |
| Republic Act (RA) 10963 – “TRAIN” (2017) | Effective 1 Jan 2018. Introduced the flat 6 % estate‑tax rate and simplified deductions. |
| RA 11213 – Estate Tax Amnesty Act (2019) + RR 6‑2019 | Provided a 6 % amnesty on estates of decedents who died on or before 31 Dec 2017. |
| RA 11569 (2021) & RR 17‑2021 | Extended the amnesty filing window to 14 June 2023. |
| RA 11956 (2023) & RR 10‑2023 / RMC 33‑2023 | 1️⃣ Expanded amnesty coverage to estates of decedents who died on or before 31 Dec 2021. 2️⃣ Further extended availment until 14 June 2025. |
| BIR Revenue Regulations & Memoranda (2018‑2025) | RR 12‑2018 (TRAIN rules), RR 17‑2020 (e‑CAR), RMC 68‑2020 (pandemic extensions), RMC 24‑2022 (e‑Payments) and others refine procedures and documentary rules. |
2. What Is Estate Tax?
Estate tax is a transfer tax imposed on the right to transmit a deceased person’s property to heirs or beneficiaries, not on the property itself.
- Rate: A single 6 % applied to the net taxable estate (after allowed deductions).
- Taxpayer: The estate is the taxpayer. The executor/administrator files on behalf of the estate; if none, any heir may file.
3. Who Must File, When, and Where
| Requirement | Details |
|---|---|
| Who files | • Court‑appointed executor or administrator. • If none, at least one heir under oath. |
| Deadline | Within 1 year from date of death (NIRC §90). • Extension: The BIR Commissioner may grant written extension before the due date, usually up to 30 days at a time for meritorious reasons (e.g., complex assets). |
| Place of filing | Revenue District Office (RDO) having jurisdiction over the decedent’s residence at death. • Non‑resident decedents: file with RDO 39 – South QC (Large Taxpayers Service). |
| Mode | • BIR Form 1801 via eBIRForms, eFPS (for eFPS‑enrolled), or manual if allowed. • Payment over‑the‑counter, through accredited banks, online banking, GCash/PayMaya, or LandBank Link.Biz. |
4. Core Documentary Requirements
Keep all originals; submit certified true copies where required. The BIR may ask for additional papers.
BIR Form 1801 – Estate Tax Return, duly accomplished and signed.
Taxpayer Identification Number (TIN) of the Estate (secure via BIR Form 1904).
Certified true copy of Death Certificate.
Notice of Death (BIR Form 1949) – filed within two months after death if gross estate > ₱5 million or estate has registered real property.
Affidavit of Self‑Adjudication / Deed of Extrajudicial Settlement / Court order (if applicable).
Schedule of Assets & Liabilities with fair‑market values at death:
- Real property – Certified true copy of OCT/TCT/CCT; latest Tax Declaration; BIR‑zonal valuation sheet; or fair‑market value as per provincial/city assessor, whichever is higher.
- Personal property – Bank certification of balances on date of death; stock certificates & book value from issuing corporation; vehicle OR/CR with MVUC values; jewelry appraisal; business interests (financial statements).
Proofs of Allowable Deductions (TRAIN §86):
- Standard deduction ₱5 million.
- Family home deduction up to ₱10 million.
- Actual funeral expenses (capped at 5 % of gross estate or ₱200 k, whichever ≤).
- Medical expenses incurred within 1 year before death (max ₱500 k).
- Debts – notarized debt instrument + supporting docs and duly notarized certification of unpaid balance.
- Vanishing deduction (prior gift/estate tax paid).
- Share of surviving spouse (conjugal/community property).
Official Receipts / Deposit Slips for tax payment (or **Acceptance Payment Form (APF) for amnesty).
Special Power of Attorney (SPA) if a representative files.
Other clearances (e.g., Bureau of Fisheries for fishing boats, NBI for firearms).
After payment, the BIR issues an Electronic Certificate Authorizing Registration (eCAR) for each real property or stock transfer.
5. Computing the Estate Tax
- Determine Gross Estate – Aggregate FMV of all properties (worldwide for resident citizens; Philippine‑situated for non‑resident aliens).
- Less: Allowable deductions (see § 4).
- Equals Net Taxable Estate.
- Apply the 6 % rate.
- Less: Any applicable tax credits (foreign estate tax for residents).
The return must include a detailed Estate Tax Computation Sheet with valuations and deductions.
6. Payment Options & Installments
| Option | Mechanics | Notes |
|---|---|---|
| Full payment on filing | Cash, manager’s check, or electronic channels. | Needed to secure eCARs immediately. |
| Installment payment (NIRC §91) | If estate liquidity is insufficient, BIR may allow payment within 2 years from due date without civil penalty or interest, provided a bond equivalent to the tax due is posted. | Interest begins after 2‑year installment period. |
| Withdrawal from bank deposits (NIRC §97) | Banks require BIR Certificate Authorizing Withdrawal before releasing deposits of the decedent. Up to ₱20,000 may be released prior to clearance to cover funeral expenses. |
7. Penalties for Late Filing / Payment
| Violation | Surcharge | Interest | Compromise |
|---|---|---|---|
| Late filing or payment | 25 % of tax or 50 % if due to willful neglect or false return. | 20 % p.a. (or the prevailing legal rate) on the unpaid amount from original due date. | BIR tables apply. |
| Failure to file Notice of Death (Form 1949) | Up to ₱25,000. | — | — |
| Failure to secure CAR/eCAR before property transfer | Registry of Deeds/stock transfer agent will refuse registration; transfer documents may be void. |
8. Estate Tax Amnesty (RA 11213, 11569, 11956)
| Item | Original 2019 | 2021 Extension | Current – RA 11956 (2023) |
|---|---|---|---|
| Who may avail | Estates of decedents ≤ 31 Dec 2017 | Same estates; period extended | Estates of decedents ≤ 31 Dec 2021 |
| Tax rate | 6 % of net estate or 6 % of decedent’s total net worth if no return filed | Same | Same |
| Minimum tax | ₱5,000 | Same | Same |
| Documentary ease | Statement of Settlement of Estate (SSE) instead of full Form 1801; less evidence on deductions/valuation | Same | Same |
| Availment period | 15 Jun 2019 – 14 Jun 2021 | until 14 Jun 2023 | until 14 Jun 2025 |
| Effect | Payment immunizes estate and heirs from civil, criminal, and administrative penalties arising from non‑payment of estate tax for covered years. |
Amnesty applicants file BIR Form 2118‑EA + Acceptance Payment Form (APF) with the RDO, pay the 6 %, then obtain eCARs.
9. Digital & Procedural Updates (2022‑2025)
- eCAR Generation System – RDOs issue eCARs with QR codes; registries verify authenticity online.
- eONETT Platform – Online Estate and Donor’s Tax application portal (pilot in select RDOs since 2024).
- Acceptable electronic signatures – BIR now recognises e‑signatures on estate tax returns and attachments submitted via eONETT/eBIRForms.
- Integrated e‑Payment Channels – GCash, Maya, UnionBank UBpay, LandBank Link.Biz, and InstaPay partners.
- Mandatory TIN for the Estate – Issued online via eREG starting 2023; no walk‑in applications for Metro Manila estates.
10. Special Situations
A. Non‑Resident Citizens & Resident Aliens
- Global estates of resident aliens are not taxed—only Philippine‑situs property.
- Foreign assets of Filipino citizens remain taxable; foreign estate tax paid may be claimed as credit (NIRC §86(E)).
B. Foreign Currency/Investment Accounts
- Present BIR Form 1954 (Authority to Release) to banks.
- BSP‑registered investments need certification of peso equivalent.
C. Pending Court Settlement
- Judicial estates must still file Form 1801; court‑approved partition serves as proof of heirs’ shares.
- If partition changes, file an amended return.
D. Trusts & Life Insurance
- Proceeds of life insurance exempt if beneficiary is irrevocably designated.
- Revocable transfers and property under a general power of appointment are includible in the gross estate (NIRC §85).
11. Practical Filing Tips
- Open an estate bank account early; require Letters of Administration or SPA plus TIN of the estate.
- Secure property valuations (zonal and assessor) contemporaneously to avoid disputes on FMV.
- Keep debts documented—unnotarized or accommodation loans are routinely disallowed.
- File Notice of Death (Form 1949) promptly to pre‑empt penalties.
- Scan and digitize all documents; many RDOs accept PDFs via email before personal appearance.
- Installment option is easier if you offer immovable assets as collateral or file a surety bond.
- Plan conveyances: eCARs are issued per asset; mismatch of titles and tax declarations delays release.
12. Consequences of Non‑Compliance
- Transfer restrictions. Registry of Deeds, LTO, corporate secretaries will not process transfers without eCARs.
- Heir liability. Heirs are personally liable for deficiencies up to the value of property received.
- Criminal sanctions. Willful failure to file or pay is punishable by fine (₱10 k – ₱100 k) and imprisonment (1‑10 years).
- Civil forfeiture. The BIR may issue a Warrant of Distraint & Levy on estate or heirs’ property.
13. Step‑by‑Step Summary Checklist
- Obtain TIN for the estate.
- Gather documents (death cert., titles, bank certs., deduction proofs).
- Secure valuations (assessor/zonal, appraisals).
- Prepare BIR Form 1801 (or 2118‑EA for amnesty).
- File & pay within 1 year (or apply for extension/installment).
- Receive eCAR(s).
- Annotate transfers at Registry of Deeds/LTFRB/SEC/stock transfer agent.
- Keep records for at least 10 years (statute of limitations).
14. Conclusion
Complying with Philippine estate‑tax rules is far less onerous since the flat 6 % rate under TRAIN and the generous amnesty window (now open until 14 June 2025). Still, estates that miss the one‑year filing deadline face steep interest and penalties. Early organization—securing the TIN, valuations, and full supporting documents—remains the surest way to obtain eCARs quickly and distribute inheritances smoothly. When in doubt, consult a qualified tax professional or the BIR’s Client Support Service for clarifications.
Updated 30 July 2025