RMC No. 94-2021: Clarifies the computation of Donor’s Tax in case the heir waves/renounces his share from the specific property forming part of the estate of the decedent

Key points

1. General renunciation. A general renunciation by an heir of the share in the inheritance is not subject to Donor’s Tax.
2. Partial renunciation. Where heirs agree that each receives specific properties, one heir may receive a share lower or higher than the value of the rightful share in all properties. This is a partial renunciation, and Donor’s Tax is imposed on the value forgone.
3. Uniform computation. An illustrative example of the computation is in the Circular. All offices processing One-Time Transactions involving the estate of a decedent apply it consistently.

Who is affected

• Heirs who waive or renounce a share in specific property of an estate