People think that paying estate tax is a burdensome process but to relieve yourself from stress one should pay the right amount just to comply tax law's of the land. The prior to the implementation of Republic Act 11213 (Tax Amnesty Act of 2019), payment of estate tax is at a rate of up to 60% and is very steep for many ordinary Filipinos.
By definition, Estate Tax is a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfers, which are made by law as equivalent to testamentary disposition. It is not a tax on property. It is a tax imposed on the privilege of transmitting property upon the death of the owner.
The Estate Tax is based on the laws in force at the time of death notwithstanding the postponement of the actual possession or enjoyment of the estate by the beneficiaries.
How Train Law is interconnected here?
Based on Republic Act 10963 (Tax Reform for Acceleration and Inclusion Act) or commonly known as TRAIN Law, There shall be an imposed rate of six percent (6%) based on the value of such NET ESTATE determined as of the time of death of decedent composed of all properties, real or personal, tangible or intangible less allowable deductions. Flat six percent (6%) is the rate to paid by anyone who will avail the tax amnesty while it is in effect.
C. F. Baluyut Realty can be of service in your real estate needs from extrajudicial settlement with our affiliate lawyer(s) in preparing your documents in paying estate taxes, transfer of property to heirs / beneficiaries etc. C. F. Baluyut Realty has more than 10 years experience in the legal process of real estate properties relieving you worries, burden and hassles with our professional services the right way.
Paying the right amount could lessen your stress and relieves your conscience as well in preventing future problems and headaches happening again in your lifetime. It is also a rightful duty of citizen to pay the taxes for benefit and development of social services and infrastructure development of our country. One should take advantage of this new law which I believe is a win-win situation for anyone having tax problems particularly in the real estate properties while it is still available until June 2021 only.
About the Writer
CRB Benedict Baluyut is a professional real estate broker, real estate appraiser and associate of C. F. Baluyut Realty. He is currently the Vice President for External Affairs, Real Estate Brokers Association of the Philippines, Inc. (REBAP) - Pampanga Chapter. You can get in touch with him at https://www.cfbaluyutrealty.com.
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