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B.I.R. Revenue Regulation No. 8-2019 on Estate Tax

Revenue Regulation No. 8-2019 dated June 12, 2019 was released by the Bureau of Internal Revenue last June 25, 2019.  This Revenue Regulation amends pertinent provisions of Sections 9 and 10 under Revenue Regulations No. 12-2018 (Estate Tax and Donor’s Tax).

The first amendment in Revenue Regulation No. 8-2019 is under Section 9 about the time and place of filing estate tax return and its payment.  The new revenue regulation  states that for payment of the estate tax by installment, the payment form to be used is “Payment Form (BIR Form No. 0605), or a payment form dedicated for this transaction, for succeeding installment payments after the filing/first (1st) payment through the estate tax return.”

The second amendment refers to the payment of tax antecedent to the transfer of shares, bonds or rights and bank deposits withdrawal.  The amendatory provision for Section 10 is as follows:

            If a bank has knowledge of the death of a person, who maintained a bank deposit account alone, or jointly with another, it shall allow the withdrawal form the said deposit account, subject to a final withholding tax of six percent (6{affa41581c539e77a889a6a46af960df9ff1c7424670374343af90ba11e244ac}) of the amount to be withdrawn, provided that the withdrawal shall be made within one year from the date of death of the decedent.  The bank shall remit to the BIR the withholding tax prescribed under this Section by filing a duly accomplished Monthly Remittance Form of Taxes Withheld on the Amount Withdrawn from the Decedent’s Deposit Account (BIR Form No. 0620) [See Annex “A”] and remit the tax withheld on or before the tenth (10th) day following the month of the quarter, instead of using BIR Form No. 0620 in the remittance of tax withheld, a quarterly remittance return (BIR Form No. 1621) [See Annex “B”] shall be filed and the corresponding final withholding tax paid on or before the last day of the month following the close of the quarter during which the withholding was made.  The herein prescribed quarterly return shall indicate, among others, the name of the estate of the decedent. Taxpayer Identification Number (TIN),date of decedent’s death, taxable base, amount withheld and date withheld.

            The bank shall issue the corresponding BIR Form No. 2306 certifying such withholding, with the original duplicate copies issued to the executor, administrator or any of the legal heirs of the decedent while the third copy retained by the bank as its reference file.  The duplicate copy shall be submitted by the executor, administrator or the authorized legal heir to the RDO having jurisdiction over the place where the decedent was domiciled at the time of his or her death, within five (5) days from its receipt.

            In all cases, the final tax withheld shall not be refunded, however, may be credited from the ax due in instances where the bank deposit account subjected to the final withholding tax has been actually included in the gross estate declared in the estate tax return of the decedent.

Revenue Regulation No. 8-2019 takes effect fifteen days after the date of its publication in any newspaper of general circulation.

Download the full copy of BIR RR No. 8-2019 :

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