Application of Estate Tax to Non Resident Alien:
- Only properties of non resident decedent situated in the Philippines are subject to Philippine Estate Tax.
- Determination of Gross Estate will depend whether there is reciprocity or not, if there is reciprocity intangible assets are excluded for estate tax purposes.
There is a reciprocity if;
- A foreign country of which the donor is a citizen and resident at the time of the gift did not imposed a donor’s tax.
- When the foreign country allowed similar exemption from transfer tax with respect to the intangible personal property owned by a Filipino citizen not residing within the said foreign country.
source; Transfer and Business Taxation by Edwin Valencia and Gregorio Roxas