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Inheratance law in the Philippines

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Posted

I got this from another group, but most of it was news to me.


The Global Property Guide looks at inheritance from two angles: taxation, and what inheritance laws apply to foreigners leaving property in Philippines: what restrictions there are and whether making a will is advisable.

INHERITANCE TAX

How high are inheritance taxes in Philippines?

ESTATE TAX

Non-resident foreigners pay estate tax only on property located in the Philippines. The taxable inheritance is arrived at after deducting all expenses, losses, debts, and taxes related to the property (all proportionate to the ratio of the Philippine gross estate to his total estate) as well as the surviving spouse's net share. Estate tax is levied at progressive rates.ESTATE TAX
TAX BASE, PHP (US$) TAX RATE
Up to 200,000 (US$4,469) nil
200,000 - 500,000 (US$11,172) 5% on band over US$4,469
500,000 - 2 million (US$44,687) 8% on band over US$11,172
2 million - 5 million (US$111,717) 11% on band over US$44,687
5 million - P10 million (US$223,434) 15% on band over US$111,717
Over 10 million (US$223,434) 20% on band over US$223,434
Source: Global Property Guide
see: http://www.bir. gov.ph/taxinfo/ tax_estate. htm

Citizens and Resident Foreigners

Citizens and resident foreigners are allowed the following deductions, aside from the expenses and taxes related to the property as well as the surviving spouse's share, before arriving at the taxable estate:
PHP1 Million (US$22,343) standard deduction,
PHP1 Million (US$22,343) for the family home,
PHP200,000 (US$4,469) for funeral expenses, and
PHP500,000 (US$11,172) for medical expenses during one whole year before the testator's death.

INHERITANCE LAW

Thanks to Platon Martinez Flores San Pedro Lea

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