Verifying Estate Tax Payment in the Philippines — A Comprehensive Guide

(Last updated 6 July 2025. This material is for general information only and is not a substitute for personalized legal advice.)

1. Why “Verification” Matters

In Philippine practice an estate cannot lawfully transfer any property—real, personal, or intangible—until the Bureau of Internal Revenue (BIR) confirms that the estate tax has been paid (or validly condoned/amnestied). Failure to check this exposes heirs, buyers, lenders, and even notaries or registrars to:

void or unregistrable conveyances (the Register of Deeds will refuse to inscribe title without proof of payment);
estate‐tax liens that follow the property into the hands of transferees (NIRC §93);
surcharges, interest, and compromise penalties against the executor/heirs (NIRC §248, §249);
criminal liability for fraudulent documents (NIRC §255, Revised Penal Code Art. 171).

Hence, “verifying estate tax payment” is now a standard due-diligence step in every estate settlement, real-property purchase from heirs, or release of bank deposits belonging to the deceased.

2. Legal Foundations

Source	Key Points on Verification
National Internal Revenue Code (NIRC), Title III (Estate Tax, §§84–97)	Creates the tax, imposes a statutory lien until paid, empowers BIR to issue clearances and eCARs.
Republic Act 10963 (TRAIN Law, 2018)	Simplified the rate to 6 % of the net estate and shifted most filings to BIR Form 1801.
Revenue Regulations (RR) 12-2018	Procedure for computing, filing, and paying post-TRAIN estate tax; requires eCAR for registration.
R.A. 11213 (Estate Tax Amnesty, 2019) as extended by R.A. 11956 (2023)	Allows unpaid estates of decedents who died on or before 14 June 2021 to settle at 6 % of net estate or zonal value until 14 June 2025; proof of availment is the Certificate of Availment plus an “ESTATE TAX AMNESTY” eCAR.
Revenue Memorandum Order (RMO) 15-2022	Rolled-out the QR-coded electronic eCAR (eCAR 2.0) and an online authenticity portal.
Data Privacy Act (R.A. 10173) & NIRC §270	Limit who may obtain or inspect returns; BIR can release certifications only to persons with legal interest.

3. When Do You Need to Verify?

Heirs & Executors Before any sale, partition, or distribution of the estate.
Buyers / Mortgagees Purchasing or accepting property from an estate or from heirs who “inherited” title.
Banks & Finance Companies Prior to releasing deposits or investments titled in the deceased’s name.
Register of Deeds / LRA, LTO, SEC, CDA Upon transfer of land titles, vehicles, shares of stock, or cooperative interests.
Courts & Notaries Approving compromise agreements, extrajudicial settlements, guardianship bonds, etc.

4. Core Documentary Proof

Document	What to Check	Typical Issuer
BIR Form 1801 (Estate Tax Return)	Must be stamped “RECEIVED” by the RDO; amount matches computation schedule.	RDO where decedent was domiciled at death.
Proof of Payment (Bank‐validated form, eFPS confirmation, G-cash receipt, etc.)	Validation mark, approvals codes, correct Tax Type: IT and ATC: ET (for estate).	AABs / electronic collection channels.
Certificate Authorizing Registration (eCAR)	Security paper or QR-coded PDF; names, TINs, property description, doc. stamps, eCAR ID.	Issued by RDO, signed by the Revenue District Officer.
Tax Clearance Certificate (for bank deposits)	Shows BIR clearance “for release of bank deposits of the late ___”.	RDO / BIR Collection Division.
Certificate of Availment (if under Amnesty)	RA 11213 reference number, amnesty payment date, annexed list of assets.	BIR, upon approval of amnesty return.

Tip: Post-2022 eCARs embed a QR Code in the upper-right corner. This code connects to the BIR eCAR Verification System and displays a digital replica; if the portal says “No record found,” treat the document as suspicious.

5. Anatomy of the Modern eCAR

[ BIR LOGO ]            Republic of the Philippines
                        Department of Finance
                        BUREAU OF INTERNAL REVENUE
eCAR ID: 2024-06-18-123456      ▲  (QR Code here)

NAME OF TRANSFEROR/ESTATE : ESTATE OF JUAN DELA CRUZ
NAME OF TRANSFEREE        : MARIA DELA CRUZ, ET AL.
TIN OF ESTATE             : 000-123-456-000
KINDS OF TAX              : ESTATE TAX / DST
PROPERTY DESCRIPTION      : TCT No. XYZ-123456, Lot 5, Blk 2...
AMOUNT PAID               : ₱ 450,000.00
DATE ISSUED               : 18 June 2025

Verification Points

eCAR ID format – YYYY-MM-DD-6-digit serial.
Paper vs. PDF – Paper has dry seal and security fibers; PDF bears a QR Code signature block.
Consistency – Names/TINs must match the deed of sale, EJ settlement, or partition.
Tax types – Should show ESTATE TAX (sometimes plus DST for deeds).
Authorized Signatory – Specimen signature on file with RDO.

6. Step-by-Step Verification Procedures

A. For Heirs or Executors

Locate the Last RDO of the Decedent Rule: Where the decedent was domiciled at death (NIRC §90).
Request a Certified True Copy (CTC) of the Estate Tax Return and eCAR. Bring: death certificate, proof of heirship (birth certificate, marriage certificate), valid ID, and written request citing legitimate purpose.
Confirm Payment Data Compare the CTC amounts with bank receipts or eFPS transaction numbers.
Verify eCAR On-Line Scan the QR code or visit the BIR eCAR portal → enter eCAR ID → print the verification screen.
Keep Originals in a fire-proof envelope; most registrars now accept both paper and digital eCAR.

B. For Buyers, Lenders, & Other Third Parties

Secure a Copy of the eCAR and Deed from the seller/heirs.
Check the QR Code against the BIR portal or personally visit the RDO to authenticate (bring written authority).
Match Legal Descriptions – TCT number, OCT number, CCT number, motor-vehicle chassis number, certificate numbers for shares, etc.
Demand the Bank Payment Proof – a missing or obviously doctored bank validation slip is a red flag.
Confirm No Estate Tax Lien – Ask the RDO Collection Section for a Certification of No Outstanding Estate Tax Liability (optional but prudent).
Proceed with Registration only after satisfactory results.

C. For Registries (ROD, LTO, SEC)

Since 2023, BIR and LRA share an Application Programming Interface (API). Registrars can enter the eCAR ID; if the database responds “VALID,” the document is presumed authentic. If the network is down, registrars require original paper eCAR or CTC.

7. Special Situations

Scenario	How to Verify
Estate Tax Paid by Installment (Sec. 91)	Check that all installment receipts—including interest—are attached and that BIR issued a “Full Payment” endorsement on the eCAR.
Compromise/Abatement (NIRC §204)	Obtain the BIR Minute Resolution approving the compromise and see that the eCAR cites “COMPROMISE APPROVED” in remarks.
Estate Tax Amnesty	Verify presence of: (1) Amnesty Tax Return (BIR Form 2118-E), (2) full payment receipt, (3) Certificate of Availment, and (4) eCAR stamped “ETA”.
Judicial Settlement Under Rule 87	Court-approved project of partition normally annexes the eCAR; verify that the docket number on the eCAR matches the estate case.

8. Common Red Flags

Erasures or photocopied signatures on paper eCARs.
eCAR ID that begins with the wrong RDO code or an impossible date (e.g., 2028 when issuance is dated 2025).
TIN appearing as 000-000-000-000 or entirely missing.
Mismatch between assessed property value and estate-tax base (grossly underdeclared).
Heirs claiming “no need for estate tax because of small estate,” yet the gross estate clearly exceeds ₱ 5 million (threshold for informal settlement but not exemption from tax).
eCAR that covers only some assets but heirs attempt to transfer all assets with it.

9. Consequences of Non- or Under-Payment

Item	Amount
Surcharge	25 % (late filing/late payment) or 50 % (fraud).
Interest	20 % per annum (simple, not compounded) from original due date to payment.
Estate Tax Lien	Attaches to all property of the estate and transmutes to the hands of transferees (NIRC §93).
Criminal Penalties	Prision correccional (6 months ~ 6 years) and/or fine.

The lien is superior even to mortgages or subsequent buyers in good faith, making prior verification indispensable.

10. Best-Practice Checklist for Counsel & Conveyancers

Always sight the original eCAR (paper or digital) before drafting the deed.
Photograph/scan the eCAR QR code in situ and save the BIR portal confirmation in your file.
Retain a CTC of the Estate Tax Return—this shows the computation in case of future audit.
Cross-check heirs’ TINs; BIR often rejects registration if names/TINs evolved (e.g., marriage, naturalization).
Warn clients that estate tax amnesty ends 14 June 2025; non-compliant estates revert to regular tax, plus penalties.
For small estates (< ₱5 M), avail of RMO 7-2021 simplified documentary requirements—but eCAR is still mandatory.
Maintain confidentiality and secure written authorizations; estate returns are not public records.

11. Timeline & Practical Tips

Stage	Typical Duration*	Speed-Up Tips
Return preparation & appraisal	2–4 weeks	Use zonal values from BIR website when waiting for city assessor certificates.
RDO pre-assessment	1–2 weeks	Submit complete documents: TINs, certified titles, appraisal statements, list of debts.
Payment at AAB	1 day	Pay through Electronic Fund Transfer Instruction System (EFTIS) to avoid bank lines.
eCAR issuance	3–10 working days	Follow up by email; provide scanned proof of payment.
Registration with ROD/LTO/SEC	1–3 weeks	File for e-technical review (LRA E-Serbisyo) simultaneously with deed notarization.

*Timelines assume no audit issues.

12. Frequently Asked Questions

Q 1: The estate tax was paid in 1995, but we lost the receipts. How do we verify now?

Go to the RDO and request a Transcript of Official Receipts (TOR) or Certification of Tax Payment. You will need the decedent’s TIN and a sworn affidavit explaining loss of records.

Q 2: We see an eCAR, but the heirs added a new parcel not described in it. Valid?

No. Each asset must be specifically listed in the eCAR Annex “A.” File a supplemental estate tax return and secure an amended eCAR.

Q 3: Can we rely solely on the QR-code portal printout without the paper eCAR?

Most registries now accept the digitally signed PDF produced by the BIR portal (per Joint BIR-LRA Memo 2024-01). Confirm local registry practice.

Q 4: Does the estate tax amnesty erase estate tax liens on already foreclosed property?

Yes—once the amnesty is validly availed and the Certificate of Availment plus “ETA” eCAR issued, the lien is lifted even from foreclosed assets.

13. Conclusion

Verifying estate tax payment is no longer a mere formality. With the BIR’s eCAR 2.0 system, QR-code authentication, and a robust statutory lien, diligence now means digitally confirming authenticity, checking payment evidence, and matching every detail before any property derived from a decedent changes hands. Following the steps and red-flags outlined above shields heirs, buyers, and professionals from avoidable tax liabilities and ensures clean title transfers.

Should you face unusual circumstances—lost records, suspected fraud, installment defaults, or complicated foreign assets—seek advice from a Philippine tax lawyer or accredited estate practitioner without delay.

Prepared by: [Your Name], LL.M. (Tax), Philippine practitioner