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RR No. 5-2022: Implements the Estate Tax Exemption under RA No. 11597 (An Act Providing for the Revised Charter of the Philippine Veterans Bank, Repealing for the Purpose Republic Act No. 3518, as Amended, Otherwise Known as “An Act Creating the Philippine Veterans Bank, and for Other Purposes”)

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Summary

RR No. 5-2022 implements the Estate Tax exemption under RA No. 11597, the Revised Charter of the Philippine Veterans Bank.

Key points

  1. What is exempt. Transfers by succession or donation mortis causa of a veteran’s common or preferred shares of stock in the Philippine Veterans Bank are not subject to Estate Tax. The transfer must be in favor of the veteran’s widow, orphan or compulsory heir under existing laws.
  2. Who counts as a veteran. The term primarily covers persons who served in regular air, land or naval services, or in non-regularly organized military units in the Philippines, during World War II, with service recognized by the Philippines or the United States government. It also covers veterans under RA No. 6948, as amended by RA No. 7696 and RA No. 9396, and the widow, orphan or compulsory heir of a deceased veteran.
  3. eCAR or TCC first. An electronic Certificate Authorizing Registration (eCAR) or Tax Clearance Certificate (TCC) must be secured from the RDO where the decedent’s estate is registered before any share transfer is registered in the bank’s books.

Who is affected

  • Veterans holding shares in the Philippine Veterans Bank
  • Widows, orphans and compulsory heirs of veterans

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.