Summary
RR No. 8-2019 amends Sections 9 and 10 of RR No. 12-2018, the consolidated regulations on Estate Tax and Donor’s Tax, to incorporate the amendments of RA No. 10963 (TRAIN Law).
Key points
- Cash installments. Under Section 9, cash installments are made within two (2) years from the date of filing the estate tax return. Succeeding installments after the first payment use BIR Form No. 0605 or a payment form dedicated for this transaction.
- Bank deposit withdrawals. Under Section 10, a bank that knows of a depositor’s death allows withdrawal from the account, alone or joint, subject to a Final Withholding Tax of six percent (6%) of the amount withdrawn. The withdrawal must be made within one year from the date of death.
- Remittance of the tax. The bank remits the tax using BIR Form No. 0620 on or before the tenth (10th) day following the month of withholding. If the tax was withheld in the third month of the quarter, it files quarterly return BIR Form No. 1621 and pays on or before the last day of the month following the quarter.
- Certificate of withholding. The bank issues BIR Form No. 2306. The original and duplicate go to the executor, administrator or a legal heir, and the third copy stays with the bank.
- Submission and crediting. The duplicate copy is submitted to the RDO covering the decedent’s domicile at death within five (5) days from receipt. The final tax withheld is not refunded, but may be credited against the estate tax due if the deposit account was included in the gross estate declared in the return.
Who is affected
- Estates of decedents
- Banks holding the decedent’s deposit accounts
- Executors, administrators and legal heirs
Deadlines and effectivity
- Cash installments within two (2) years from filing of the estate tax return
- Withdrawals within one year from the date of death
- Remittance by the tenth (10th) day following the month of withholding
- Duplicate of BIR Form No. 2306 submitted within five (5) days from receipt
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.