RMC No. 62-2018: Clarifies the requirements on the withdrawal from the bank deposit account/s of a deceased depositor/joint depositor without the required Electronic Certifcate Authorizing Registration

Key points

1. Who may withdraw and the tax. The executor, administrator or a legal heir may withdraw within one (1) year from the date of death. The amount withdrawn is subject to six percent (6%) Final Withholding Tax, and for a joint account it is based on the decedent’s share.
2. What the bank requires first. The person withdrawing must present a copy of the TIN of the estate and BIR Form No. 1904 of the estate, stamped received by the RDO.
3. Bank duties. The bank issues BIR Form No. 2306 certifying the 6% final tax, files the quarterly return and remits on or before the last day of the month following the close of the quarter. Withdrawal slips carry a sworn statement by a surviving joint depositor that the other joint depositors are still living, and a statement that the withdrawal is subject to 6% FWT.
4. Exception. Deposits already declared for Estate Tax and shown in the eCAR issued by the RDO, when presented to the bank, are no longer subject to the 6% FWT.

Who is affected

• Executors, administrators and legal heirs of a deceased depositor
• Banks

Deadlines and effectivity

• Withdrawal within one (1) year from the date of death
• Remittance on or before the last day of the month following the close of the quarter