Estate Tax of NRA

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

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About Jonathan Ruiz CPA

Newbie Mentor and one of the influential author in the Philippines setting. His also the founder of PAM Academy and Developer of PAM PSE TRACKER application.
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