Updates on the filing and payment of estate tax

(Revenue Regulations No. 8-2019)

This Tax Alert is issued to inform all concerned on the following amendments on the filing and payment of estate tax under the TRAIN law:

  • Succeeding installment payments of estate tax after the filing/ first payment through the estate tax return shall now be paid using BIR Form 0605, or a payment form dedicated for this transaction. Prior to TRAIN Law, installment payment is not allowed.
  • The 6% final tax withheld by the Bank on deposit account of decedent shall now be remitted through the filing of Monthly Remittance Form of Tax Withheld on the Amount Withdrawn from the Decedent’s Deposit Account (BIR Form No. 0620) on or before the 10th day of the month following the month of withholding. For the taxes withheld on the 3rd month of the quarter, a quarterly remittance return (BIR Form No. 1621) shall be filed on or before the last day of the month after the close of the quarter of withholding. BIR Form No. 1621 requires details on the name of estate, TIN, date of decedent’s death, withdrawn amount (tax base), amount of tax withheld, and date withheld.
  • The bank shall issue 3 copies of BIR Form 2306 to certify the withholding of 6% final tax. The original and duplicate copies shall be issued to the executor, administrator or any legal heirs of the decedent while the third copy shall be retained by the bank. The executor, administrator or any legal heirs of the decedent shall submit the duplicate copy to the RDO having jurisdiction over the place where the decedent was domiciled at the time of his/ her death within 5 days from its receipt.
  • Crediting of the 6% final tax withheld by the bank shall now be allowed in case the bank deposit subjected to the withholding tax has actually been included in the gross estate declared in the estate tax return of the decedent. Previously, under RR No. 12-2018, the final tax withheld cannot be credited on the tax due on the net taxable estate of the decedent.

RR 8-2019 shall take effect on July 11, 2019.