Distinction between Estate Tax and Donor's Tax
Estate Tax
Effectivity of Transfer of
Property
Donor's Tax
Upon the death of the decedent
During lifetime of donor and donee
1. Donative intent of the donor
Imposition
1. Death of the decedent
2. Heir or successor is alive at the time of the
decedent's death and is not qualified to inherit.
2.a. Compulsory Heir
2.b. Voluntary Heir
3. Estate/Inheritance
Donation mortis causa
Accrual Period
Upon the date of death of the decedent
Requisites or Elements
Governing Law
Taxpayer
Statute in force at the time of death of the
decedent
Estate of the decedent represented by the
administrator, executor or legal heirs
The executor/administrator of an estate has the
primary obligation to pay the estate tax but the
heir or beneficiary has subsidiary liability for the
payment of that portion of the estate which his
distributive share bears to the value of the total
net asset.
Basis of Tax
Net Taxable Estate
Tax Rate
BIR Form
Filing of Returns
Installment Payments
(insufficient cash to pay
tax)
Extension to file
6%
BIR Form No. 1801
Within one (1) year from death
Extension of timing of
payment (Due to
Hardship)
2. Capacity or Authority of the donor
3. Delivery of donated property
4. Acceptance by the donee
Donation inter vivos
At the time the gift is made or completed (Sec. 15
B of RR 12-2018)
Statute in force at the time of the
perfection/completion of donation
The donor
Net Gift subject to Tax
after P250,000 deduction
6%
BIR Form No. 1800
Within thirty (30) days after the date gift is made
Installment payments may be made within 2
years from the date of death without any interest
Not allowed installment payments
Not more than 30 days
No extension to file
Estate settled through the court (Judicial
Settlement) - not to exceed 5 years
Estate settled extra-judicially - not to exceed 2
years
Not allowed