Philippines Estate Tax & Donor's Tax Calculator

About the Philippines Estate Tax & Donor's Tax Calculator

Two taxes on passing property on, in one calculator. The estate tax is 6% of the net estate: everything the person owned at death, less the ₱5,000,000 standard deduction that needs no proof, the family home up to ₱10,000,000, debts and unpaid mortgages, death benefits under RA 4917, bequests for public use and the surviving spouse's share of the conjugal property. The donor's tax is 6% of the total gifts you make in a calendar year above ₱250,000.

Both follow the Tax Code as the TRAIN Law left it, so the computations here line up with the BIR's own worked examples — including the rule that a conjugal family home is deductible as to one half only, and that gifts in the same year are added together so the tax on a later gift is the tax on the running total less the tax already due.

Common uses

• Work out what an estate owes before the one-year deadline runs out.
• See how much of a family home’s value is really sheltered by the deductions.
• Plan a gift so it stays inside the ₱250,000 a year that carries no tax.
• Check the tax on a second gift in the same year, where the running total matters.
• Compare giving property now with leaving it in an estate.

Estate tax: 6% of the net estate

The estate tax is a flat 6% of the net estate of every decedent, resident or not (Section 84 of the Tax Code, BIR: Estate Tax). It is a tax on the privilege of passing property on, not on the property itself, and the law in force at the date of death applies.

The gross estate is everything the person owned at death — real property, personal property, bank deposits, shares, receivables, and the proceeds of life insurance where the beneficiary was not irrevocably appointed. A citizen or resident is taxed on property wherever it is; a non-resident alien only on property in the Philippines. GSIS and SSS benefits, war damage payments and the separate property of the surviving spouse are not part of the gross estate.

What you can deduct

For a citizen or resident (Section 86(A), RR No. 12-2018):

• Standard deduction of ₱5,000,000, with nothing to prove.
• Family home at its current fair market value, up to ₱10,000,000, and only to the extent of the decedent's interest — so one half if it is conjugal or community property. The barangay captain certifies that it was the family's actual residence.
• Claims against the estate, claims against insolvent persons, unpaid mortgages, taxes and casualty losses. A debt contracted within three years of death needs a statement of how the loan was used.
• Property previously taxed (the vanishing deduction), at 100% down to 20% depending on how long before the death the earlier transfer happened.
• Transfers for public use, and amounts the heirs receive from the decedent's employer under RA 4917.
• The surviving spouse's net share in the conjugal partnership or community property, so only the decedent's own interest is taxed.

A non-resident alien gets a ₱500,000 standard deduction, no family home or RA 4917 deduction, and losses and indebtedness only in the proportion the Philippine estate bears to the whole estate (Section 86(B)).

Donor's tax: 6% above ₱250,000 a year

The donor's tax for each calendar year is 6% of the total gifts in excess of ₱250,000 (Section 99, BIR: Donor's Tax). Since the TRAIN Law the relationship between donor and donee is irrelevant — the old 30% rate on gifts to "strangers" is gone.

Gifts are cumulated over the calendar year: a second gift is taxed on the running total, less the tax already due on the earlier gifts. The net gift is the economic benefit the recipient gets, so a mortgage the recipient takes on comes off the value. Husband and wife are separate donors: when both give conjugal or community property, each gives half, files a return and has their own ₱250,000; if only the husband signs the deed of donation, he is the only donor (RR No. 12-2018).

Gifts to the national government, a non-profit entity created by one of its agencies or a political subdivision, and to a qualifying non-profit educational, charitable, religious, cultural or social welfare body that spends no more than 30% of the gift on administration, are exempt (Section 101), and no donor's tax return is required for them (Section 103(A)). Campaign contributions are governed by the Election Code instead.

Valuation

Everything is valued as at the death or the date of the gift (Section 88). Real property takes the higher of the value determined by the Commissioner and the value in the assessor's schedule. Listed shares take the mean of the highest and lowest quotation on the nearest date; unlisted common shares their book value and unlisted preferred shares their par value. A right of usufruct, use, habitation or annuity is valued on the probable life of the beneficiary under the basic standard mortality table approved by the Secretary of Finance.

That is why a family home can be worth more for tax than the family expects: the assessor's or the Commissioner's figure wins over what the house "feels" worth.

Returns, deadlines and the title transfer

Estate tax: file BIR Form 1801 within one year of the death, with the payment (BIR: Estate Tax). The Commissioner may grant 30 days more to file. A return showing a gross value above ₱5,000,000 needs a statement certified by a CPA. Where the estate is short of cash, the tax may be paid by instalments within two years of the due date without penalty or interest, and a longer extension (up to five years in a judicial settlement, two years out of court) may be allowed for hardship.

Donor's tax: file BIR Form 1800 within 30 days of the gift, and pay at the same time. A separate return goes in for each gift, showing the earlier gifts of the same year.

For land, a vehicle or shares, the Register of Deeds or registry will not transfer the property without the BIR's electronic Certificate Authorizing Registration, so the return is filed even when the tax works out at nil. Every form is on the BIR's forms page.

Limitations

• The property previously taxed (vanishing) deduction and the tax credit for estate or donor’s tax paid abroad are not worked out; enter them yourself as part of the debts line if your computation includes them.
• The surviving spouse’s share is a figure you enter: it depends on the property regime of the marriage and on which deductions belong to the conjugal property.
• For a non-resident alien the proportional limit on losses and indebtedness is not applied; enter the proportion yourself.
• The estate tax amnesty and its own deadlines are not covered.
• Only the current 6% rates are used. A death or a gift before 2018 was taxed on a graduated schedule, which this calculator does not include.
• Surcharge, interest and compromise penalties on a late return are not included.
• An estimate — not tax or legal advice. Estate settlement needs a lawyer or a CPA, and the BIR’s own computation sheet governs.

Privacy

Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.