Estate Tax Credit

Tax credit for estate tax paid to a foreign country

  1. Who can claim? Only citizen or resident alien decedent.
  2. Limitations on tax credit:

1st Limitation

Net estate (per Foreign Country) / Total Net Estate x Philippine Estate Tax

2nd Limitation

Net estate (All Foreign Countries) / Total Net Estate x Philippine Estate Tax

Items 1 and 2 are based on the following information:

Country A: Net estate of P100,000 and estate tax paid of P3,500; Country B: Net estate of P200,000 and estate tax paid of P5,000; Philippines: Net estate of P200,000. The decedent was a citizen and resident of the Philippines.

  1. The estate tax credit for foreign estate taxes paid is:

a. 9000     b. 8500    c. 8000  d. 7000

ANSWER:
  1. The estate tax still due after credit for foreign estate taxes paid is:

 

a. 6000      b. 6500    c. 7000   d. 15000

 

For the correct answers,  I would like to invite you to join my exclusive groups of aspiring CPAs for my upcoming project “CPA Dream Academy”.CPA DREAM ACADEMY

CPA Mentor,

JONATHAN RUIZ CPA, MIB

 

 

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About PAM Academy Founder

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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