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


About Jonathan Ruiz CPA

Entrepreneur, CPA Mentor, Stock market Newbie Mentor, Influential Author and Master's Degree in International Business graduate in Hult International Business School, UK. A father of two lovely daughters.
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